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Economic and Market Assessment City of Louisville, CO
<br /> OFFICE/R&D/FLEX MARKET ASSESSMENT
<br /> In order to more fully assess Louisville's future office/R&D/flex potential, it is useful to understand
<br /> current regional market characteristics. According to the global commercial real estate brokerage firm,
<br /> Grubb & Ellis, the greater Denver office market is comprised of ten submarkets including Boulder, which
<br /> in turn, includes Louisville. Data are for rental properties in the fourth quarter of 2011, and do not
<br /> include owner-occupied buildings. Boulder ranks 6th out of the ten submarkets in total leasable space
<br /> with approximately 7.2 million square feet, and 4th in vacancy at 15.5 percent.
<br /> Figure 26: Greater Denver Area Office Trends
<br /> YTD Net
<br /> By Submarket Total SF Vacant SF Vacant% Absorption
<br /> Central Business District 26,493,570 3,960,847 15.0% 176,093
<br /> Boulder 7,193,048 1,112,969 15.5% (142,737)
<br /> East 6,067,468 1,365,843 22.5% 226,267
<br /> Midtown 4,500,474 416,719 9.3% 10,682
<br /> Northeast 2,734,640 615,163 22.5% 131,253
<br /> Northwest 9,336,287 1,597,928 17.1% 162,969
<br /> Southeast 9,633,118 1,959,885 20.3% (93,003)
<br /> Southeast Suburban 30,384,091 5,360,678 18.5% 167,173
<br /> Southwest 4,391,248 609,556 13.9% 29,872
<br /> West 7,634,677 1,290,128 16.9% 26,256
<br /> Source:Grubb& Ellis
<br /> As the data in Figure 26 shows, the Colorado Technology Center has approximately 2.3 million square
<br /> feet of occupied space, and only 1,412 square feet of vacant space, a negligible amount. From an
<br /> occupancy standpoint, Louisville's R&D/Flex market appears strong and stable. Centennial Valley on the
<br /> other hand, could have as much as 425,000 square feet of vacant office space (564,595 vacant SF —
<br /> 140,000 SF Sam's Club=425,000 SF), depending on just how much was indeed retail.
<br /> Conclusion
<br /> Louisville has considerable land and building assets to support continued employment generating
<br /> growth. The Colorado Technology Center is positioned as a commerce park with an established
<br /> character as such, and should probably remain so. Centennial Valley accommodates a broader mix of
<br /> uses, the expansion of which could benefit the area in the long run. Boulder's position in the
<br /> marketplace does not suggest that any significant speculative development activity will occur in
<br /> Louisville in the next few years. However, if the former Conoco Phillips campus redevelops in the near
<br /> term, it has the potential to have a significant impact on the demand in other real estate sectors in the
<br /> Louisville marketplace. In the meantime, Louisville will have to continue to compete vigorously in the
<br /> regional marketplace for its share of white collar companies.
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