Residential properties in Colorado aren’t the only properties that are hot - commercial properties are even hotter. Many attribute the marijuana business in Colorado as essentially kick-starting the residential and especially the commercial market in the Denver area and throughout the state. Denver is now the fastest growing large city in the nation.

 

The commercial retail space in Denver has increased 14.9% from a year ago. Commercial office space has increased 11.3% and multifamily properties have increased in the Denver area 23.7% from last year. Even industrial properties have increased county wide 29.9% and 33.4% in the city from this time last year.

 

Although the growth in Denver has been increasing, new building construction and sublease space are bringing relief to a once-strained market. During the last year, Denver added 2.3 million square feet of office construction along the Skyline. Several other large projects are underway. Foreign investors now own 14% of the Denver Skyline. Canadians and Germans claim more than 60% of that total.

 

In northern Colorado and the Boulder area, commercial properties are making a sharp comeback with higher occupancy and fast sales activity. Lease rates are increasing and properties are sold within days of being listed. Inventory is low with less than 5% vacancy. Areas like Loveland have almost no retail or small industrial space available. Ft. Collins only has a 7% commercial vacancy available. The western slope and southern areas of Colorado are on the comeback road as well.

 

When buying or selling commercial property, the details are of the utmost importance. Hiring a real estate attorney in advance may be the smartest thing you do. The specifics of commercial property can make or break a sale. An experienced commercial real estate attorney will help you determine whether this deal will work and will protect you, even if the deal falls through or the buyer/seller backs out of the sale. Your attorney will go over leases and contracts for tenants and future tenants ensuring your rights are safeguarded.

 

Before the closing, there will be an intense period of time of research and preparation your attorney will be handling. Your attorney can also negotiate a purchase price, set up procedures and penalties if the other party walks away or if a problem such as structural damage develops later. Your attorney will be that other set of eyes catching problems that may not be apparent to you.

 

When you find the property you want or if you’re getting ready to sell, your attorney will review all documents making sure nothing compromises the closing.  One piece of erroneously filed information can stop a sale in its’ tracks, take weeks to correct, perhaps giving the other party a reason to walk away from the deal.

 

The other party in a commercial real estate transaction will likely have their own real estate attorney fighting for their interests, you should have your own attorney looking after yours too.