Colorado Springs Real Estate Briefs: August 17, 2007

Shops at the Bluffs owner United Properties of Minneapolis has announced that an Office Depot retail store will open in its redeveloped center at Austin Bluffs Parkway and North Academy Boulevard.

Leasing is being handled by David Hicks Lampert brokerage of Greenwood Village.

The office supply giant will join an expanded 74,000-square-foot King Soopers grocery, 24-Hour Fitness Club, Hancock Fabrics, and several pad site retailers and inline service providers in the single-story multi-tenant buildings north and east of the grocer and the four buildings along Austin Bluffs Parkway.

The developer began demolition last week at the former Mall of the Bluffs three-winged facility that is near the center of the site, which will become a central parking area for shoppers, with outside access to each of the retail complexes.

Demolition, construction and remodeling are expected to be complete by mid-2008. The remodeled Kings Soopers will open first -- probably in June -- said United Properties spokeswoman Amy Freeland.

Industrial performance

Industrial sales performance is leveling off sharply, said Steve Bach of Bach Real Estate Partners in the company's second quarter 2007 report.

The broker said the downturn is based primarily on declining sales to investors outside Colorado. As a result, the total value sold also has slipped on a year-over-year basis.

"Commercial buildings of all types show a decrease in the percent of asking price achieved," he said, pointing to a 76.1 percent of asking price paid year to date, compared to 98.5 percent during 2004, 86.9 percent during 2005 and 86.3 percent during 2006.

Bach's statistics were based on information compiled by Turner Commercial Research.

Bach credits three factors for the decline: aggressive asking prices from sellers, a diminished supply of "top quality" offerings and last year's flurry of 1031 exchange activity, which has leveled.

In addition, Mike Helwege, also of Bach Real Estate Partners, said vacancies in the area's industrial buildings are expected to edge up slightly to 6.7 percent, compared to 6.6 percent in December.

That means slightly more than 7.6 million square feet of industrial space in a variety of subcategories remains available -- not including the 1 million square feet at the Intel site.

Cbeyond leases space

Cbeyond Communications LLC has leased 2,658 square feet at 5445 Mark Dabling Blvd.

Mike Helwege and Steve Bach of Bach Real Estate Partners represented the landlord, 5240, 5320 & 5445 Mark Dabling Blvd LLC. Brian Wagner of Sierra Commercial Real Estate represented the tenant.

Becky Hurley covers real estate for the Colorado Springs Business Journal.

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