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Market Findi~igs Si-insirtarti/ <br />October 17, ?008 <br />Office rents outside downtown are lower, with rents along South Boulder Road at $7 <br />per square foot. <br />Retail Market Findings <br />Anticipated household growth in the trade area surrounding the station will create <br />demand for neighborhood oriented retail. Current rents along the corridor are not <br />sufficiently high to support retail development, although conditions are expected to be <br />suitable in approximately four to six years based on a composite of opinions from <br />developers familiar with the market context. Additional retail considerations of note <br />include the following. <br />^ Current residential development in the area will generate approximately 1,100 new <br />housing units from the Takoda, North End, and Indian Peaks projects. In addition, <br />330 to 360 new rooftops are expected to be developed within Highway 42 area. <br />^ The additional rooftops, as well as other growth expected in the trade area, will <br />directly impact the amount of supportable retail development. The market analysis <br />indicates that growth in the area can support 70,000 to 90,000 of net new retail floor <br />area. <br />New development requires $20 to $24 per square foot for in-line tenants and $18 for <br />small anchor tenants. Market rental rates in the Highway 42 area are cun•ently <br />estimated at $14 per square foot. As market pressures gro~~, rent potentials are <br />expected to climb. <br />Residential Market Findings <br />There is significant market potential for residential development within a two mile <br />radius of the Highway 42 revitalization area. The market is maturing and diversifying, <br />given the range of attached and detached products included in active development. Key <br />findings from the research include: <br />There are 535 attached units in the pipeline within the immediate vicinity of the <br />Highway 42 area with another 773 units in Broomfield, including projects within <br />town center developments. The volume of attached development in the pipeline, <br />some located in town center environments, suggests the market will support the <br />type of higher density development anticipated for the Highway 42 corridor. <br />The overall Louisville market is strong, given appreciation rates of resale product <br />located in the vicinity of downtown. The growing volume of sales and 8.3 percent <br />annual average price increases have outpaced other submarkets in the metro area. <br />2 ~ssmM ~ai~os.~io~ <br />