The Local Market Experts


Sales of Longmont office, industrial spaces on pace to increase over 2014

Posted on: Sep 1 15

by: admin

Experts: Cost of doing business drawing Boulder companies

By Shay Castle, Staff Writer, Longmont Times Call

Sales of office and industrial sites in Longmont are on track to handily outpace last year, with 31 sales through Aug. 27, compared to 32 for all of 2014.

The brisk rate in Longmont has easily outstripped similar sales in nearby Boulder, according to a new report from Tim Conarro, broker and owner of Longmont Commercial Real Estate.

In Boulder, 26 spaces have sold in 2015. Boulder saw 43 total transactions last year.

Conarro said the cost of property is a driving factor in the sales growth.

Longmont’s $73-per-square-foot average sales price is half that of Boulder’s average of $145 per square foot. Lease rates are also more affordable in Longmont, averaging $8.36 per square foot. In Boulder, that figure is again double: $16.85 per square foot.

Longmont spaces are 91.6 percent leased. Boulder is 88.2 percent leased.

“Longmont really seems to be chugging along,” Conarro said. “(The city) is on pace to post a 50 percent increase in sales, while Boulder will probably be close to the same from last year.”

Conarro and other experts say a significant portion of businesses relocating to the area are coming from Boulder.

“It’s just natural for businesses to come down Diagonal (Highway) to Longmont as the market tightens,” said Wendy Nafziger, vice president of the Longmont Area Economic Council.

Companies are being driven not only by the relatively affordable cost of office space, but by the reduced costs of doing business in the city of Longmont, which operates its own utility and fiber optic Internet network.

The cost to acquire space in Longmont through lease or sale will likely be pushed up as demand increases, said Ed Regel, broker for Regel Associates.

“The market has been on a fantastic pace for two years, and there has been an increase in price per square foot,” Regel said, not only in Longmont but across the region. “Unless more properties are put into production, there’s a limited amount of space for people who need to expand or new companies just getting started.”

Regel believes Longmont is in a better position than most Boulder County communities to retain its commercial affordability, given the amount of land available for future development compared to nearby municipalities.

“We have room to expand,” he said. “Boulder’s limited, Louisville — except for the Colorado Technology Center — is limited. Lafayette is limited; Superior is limited.

“Out of Boulder County, we have the most land.”

Conarro said he is already seeing clients decide to build rather than buy, a trend he predicts will continue as Longmont’s commercial real estate market develops.

“I think with the new mall project and some of the stuff going on in south Longmont, I think that will be good for commercial real estate,” he said. “I’m looking forward to Longmont continuing to mature.”

Longmont Commercial Real Estate provides commercial real state sales & Leasing to established businesses, to start ups, to property owners and to investors in the greater Longmont Colorado area

Contacts

Longmont Commercial Real Estate Brokerage: Summit Commercial Brokers, 734 Arrowood St
Longmont CO 80503

Longmont Commercial Real Estate
734 Arrowood St
Longmont CO 80503
Phone: 303-746-1490
timconarro@gmail.com Copyright 2014