Brokers Say Commercial Retail Market Stabilizing In Aspen...
The downtown commercial core is nearly full, with a vacancy rate reaching pre-recession percentages.About 30 retail leases have commenced in the past year, which is more than the usual handful that occur annually, said commercial real estate broker Karen Setterfield.
The market is very, very tight right now,” he said. “There are very few spaces available. A year ago you had your selection to pick from and there were deals to be made. There are no more deals.”
Commercial brokers also agreed that rent prices have stabilized and as a result, the pop-up retail stores that once were popular in the local market are no longer a viable option for prospective renters. Pop-up retail is a trend of opening short-term stores, which are known for their spontaneity .The pop-up concept is something that thrived in Aspen over the past couple of years in response to the Great Recession when landlords were willing to tolerate short-term, discounted leases in order to keep their buildings full, said Kruger. But now that the market is stabilizing and there are fewer options for prospective renters, landlords no longer need to rely upon them, she said.
The shift toward long-term leases is a healthy trend in the retail sector, Kruger said, noting that pop-up businesses are a short-term solution but not necessarily good for the marketplace in the long run.
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