Colorado Real Estate News

The Top 3 Indicators for Commercial Real Estate Recovery

Written by President and CEO of Kentwood Real Estate, Gretchen Rosenberg

Our Kentwood Commercial team of brokers is often asked what they see on the horizon for commercial real estate (CRE) and whether the sector across-the-board suffered pandemic woes.

In actuality, CRE is many sectors, not one. Commercial office sales and leasing are quite different from industrial and warehouse, retail and mixed-use are nothing like multifamily. If we unpack the variety of sectors in Colorado’s real estate markets, we can use the past 14-months to plan for the future.

Leading Indicators

Leading indicators are what drive behavior change and business results. The leading indicators of the Work from Home adaptations we’ve made over the past year are impacting both the housing and commercial office markets. Many businesses are planning to retain a hybrid model but are committed to being back in their offices by third quarter 2021 in some form. This will benefit office, but the sector still lags in other areas of CRE. Companies are looking for ways to consolidate and shrink their office footprint, and in metro Denver we have hundreds of thousands of square feet on the sublease market. Dr. Michael Sklarz wrote about the intersection of rising housing prices with office lease rates due to the WFH trend in a recent blog post.

Company Culture

CRE appears to outsiders to be a clinical, analytics driven area of real estate. In many ways, that’s true. However, human behavior and consumer behavior have a large influence over many CRE sectors. Retail and hospitality has been impacted in an outsized way by the pandemic and the business owners are re-imagining how their businesses will look going forward, and how their real estate needs will be changing as a result. Corporations are reconsidering the open floor plan “hoteling” model that came into fashion over the last decade. Some managers like that model even more as they move to a hybrid work from home format, others like it less as they wrestle with how to keep their employees safe in an office environment.

Warehouses Dominate

The industrial and warehouse sectors are thriving. Internet shopping is driving a need for fulfillment and storage which is driving demand for warehouses. This is a trend that picked up steam over the past year and should remain strong as we move into 2022 and beyond.

Commercial real estate is thriving in Colorado for many owners and landlords. Others are still struggling – multifamily owners are impacted by eviction moratoriums, strip malls with family-owned restaurants and shops hope tenants reinvigorate as society opens back up, large office buildings aren’t clearing vacancy rates at the planned for velocity. The best way to stay informed about CRE is to speak with brokers who know all aspects of the business. Kentwood Commercial brokers are seasoned professionals who stand ready to help.

Colorado Real Estate News

Kentwood Commercial Welcomes Two Dynamic Brokers to Its Colorado Team in January 2021

Kentwood Commercial, part of Kentwood Real Estate and an exclusive Colorado affiliate of Berkshire Hathaway’s HomeServices of America, is proud to announce the arrival of Randy Swearingen and Jim Tyler as Senior Commercial Advisors to its Colorado team. The addition of Randy and Jim further expands Kentwood Commercial’s level of expertise, integrity, and reliability, solidifying its reputation as the commercial brokerage to trust in Colorado.

Combining forces, Randy and Jim bring 60+ years of Denver commercial real estate experience to the table and plan to leverage their expertise to focus on tenant representation in the office, flex, and industrial markets in the South Metro Denver area.

Randy, a local Denverite, has been entrenched in the Denver Commercial Market for over 34 years, representing a myriad of Fortune 500 clientele and completing in excess of $1 billion in sale and lease transactions. With over 20 years as a top producer at major commercial brokerage firms, Randy brings expertise to Kentwood Commercial that includes tenant and landlord representation, development, market and financial analysis, site selection, marketing strategies, lease and sale negotiations, and space programming.

Also growing up in the Denver area, Jim is a former partner at Tenant Strategy and has represented a myriad of clients, including both Fortune 1,000 and local Denver companies. With over 25 years of professional business expertise in many areas of real estate, including tenant representation, landlord representation, development, and construction, Jim joins Kentwood Commercial having completed over 425 corporate tenant representation assignments totaling approximately four million square feet of commercial office and flex space.

“I am thrilled to work with both Randy and the Kentwood Commercial team in my native Colorado,” said Jim Tyler, Senior Commercial Advisor at Kentwood Commercial. “Together, Randy and I will bring our combined experience to the table to assist tenants and create strategies around their occupancy to achieve the optimal outcome for the real estate needs of the market.”

“Being able to call Kentwood Commercial, and their new One DTC West office building, ground zero is a great fit for us, allowing us to enhance the quality of our tenant representation services with a brokerage firm that employs top-level individuals and produces support and marketing materials that are second to none,” added Randy Swearingen, Senior Commercial Advisor at Kentwood Commercial. “Both Jim and I are lifetime Denverites and rooted in the community. We have spent a great deal of our commercial real estate careers helping occupiers and tenants succeed, and we look forward to delivering an increased level of expertise as we continue our work with Kentwood Commercial.”

Kentwood is committed to working with only the finest agents. Many of our esteemed brokers serve on committees and Boards of Directors of real estate associations throughout the state, and all are active and respected in their communities. As an affiliate of Berkshire Hathaway’s HomeServices of America, Kentwood has access to the resources of leading real estate brands.

“We are proud to welcome Randy and Jim to the Kentwood Commercial team and look forward to the impact their extensive expertise will have on the Denver market,” said Gretchen Rosenberg, president and CEO of Kentwood Real Estate. “At Kentwood, we believe that the most productive agents are those that are “rooted in community” and know their communities inside and out. When we hire new brokers, we put our full trust in them that they will serve as consummate professionals: trustworthy, dedicated, and ethical, which Randy and Jim exemplify.”

Kentwood is a proud member of the Denver Metro Association of Commercial Realtors (DMCAR), Asian Real Estate Association of America (AREAA), the Colorado Association of Hispanic Real Estate Professionals (CAHREP), the National Association of Hispanic Real Estate Professionals (NAHREP®) Denver Chapter, the National Association of Gay & Lesbian Real Estate Professionals (NAGLREP) and the National Association of Real Estate Brokers (NAREB). Additionally, our brokers belong to such esteemed associations as the Denver Metro Association of REALTORS®, Fort Collins Board of REALTORS®, Boulder Area REALTORS® Association, Loveland-Berthoud Association of REALTORS®, South Metro Denver REALTORS® Association, and the Colorado Association of REALTORS®. To learn more about Kentwood Real Estate and available listings, visit www.Kentwood.com.

About Kentwood Commercial

Kentwood Commercial is a boutique commercial brokerage that combines the exceptional local brand and referral network of Kentwood with the national strength and financial support of Berkshire Hathaway. The company has the ability to nimbly handle the range of large institutional and smaller entrepreneurial clients with the highest level of skill, responsiveness, and experience in the industry.

Our brokers and management team are dedicated to superior customer service and unmatched expertise in all segments of the market. Locally-owned, with some of the most experienced brokers in the industry, Kentwood Commercial assists with every facet of each sale or lease. The Kentwood professionals know the real estate business inside and out, they are unmatched in knowledge of the commercial market in the Denver metro area. The offices of Kentwood Commercial are conveniently located in Downtown Denver, Cherry Creek North, and the Denver Tech Center. For more information, visit www.KentwoodCommercial.com.