NoCo Newsletter | May 22, 2025

Photo: NAI Affinity featured listing – Loveland | Small, Affordable Flex Work/Storage Warehouse Units

NoCo Newsletter | Keeping You Informed on Northern Colorado’s Commercial Real Estate Market | May 22, 2025

Discover our newest listings, recent happenings in the NoCo CRE community & other industry news. This edition brings news of hotel and office investment, first-time home buyer woes, regional economic activity, investment, growth, and more.

REAL ESTATE & BUSINESS NEWS

• Longmont Tiny Home Village for Veterans Nears Completion
  • 9News | “A long anticipated tiny home village for unhoused veterans in Longmont is nearly complete and set to officially open June 12, but it’s already changing lives. The Veterans Community Project, the nonprofit behind the initiative, says it’s already housing veterans in need, even ahead of the formal launch. Built primarily by volunteers, the village includes 26 homes designed to offer transitional housing and support for veterans experiencing homelessness. Some of the tiny homes are designed for veterans and their families.”
• Old Town Beer Bar Closes, Makes Way for Big Move at The Exchange
  • Coloradoan | “FoCo Beer Collective, 225 Pine St., shuttered April 28 after just under a year at The Exchange…Its neighbor, Yellow Crunch, known for its crunchy cornmeal empanadas and other traditional Colombian fare, will take over the unit later this year, Yellow Crunch owner Viviana Henao confirmed….The move to 225 Pine St. will triple Yellow Crunch’s footprint and allow for a full bar, larger kitchen, more year-round indoor seating and space for events like salsa dancing nights, Henao said. As a former beer bar, the unit does not have a kitchen and will require construction of one. Henao expects the space’s build-out to take several months, with a target opening date of November 2025, she said.”
• Downtown Denver Towers Sell For $3.2M, Down 98% From 2019 Value
  • BisNow | “Los Angeles-based developer Asher Luzzatto purchased the buildings at 621 and 633 17th St. for $3.2M in April, down from an estimated $200M valuation in 2019. The properties, totaling nearly 1M SF, are slated for conversion into more than 700 apartment units. The dramatic discount shows how much values have eroded in Denver’s urban core. Downtown office vacancy sits at 35%, according to CBRE’s first-quarter office report, and local experts cited by 9News estimate that many office assets have lost between 40% and 50% of their value since 2020…The sale adds to growing momentum around office-to-residential conversions.”
• 16th Street Mall Officially Has a New Name
  • 9News | ” ‘We will now describe this great jewel in Denver as 16th Street,’ Johnston said….’We dropped the ‘mall’ because it is so much more than just one retail location or one block, it is an entire mall of experience, a mile of experience,’ Johnston explained. The Downtown Denver Partnership paid a London agency $100,000 for the rebrand. CEO Kourtny Garrett said the decision reflects how the area has transformed since its original conception….The rebrand includes new public messaging, with ‘The Denver Way’ as a tagline for the street….The rebranding comes as downtown Denver continues recovering from pandemic impacts. The Downtown Denver Partnership reports overall visits to the area have reached 85% of pre-COVID levels, while the vacancy rate on 16th Street stands at 30%, compared to 15% for downtown overall.”
• The Stanley Hotel Has Been Sold, Paving Way for Expansion, Events Center, and Horror Museum
  • Coloradoan | “Colorado Educational and Cultural Facilities Authority (CECFA) purchased the iconic Estes Park hotel May 15 as part of a public-private partnership that also included private bond investors, the hotel’s longtime owner John Cullen and Sage Hospitality Group, which will manage the hotel, according to a CECFA news release….In the coming years, a nearly $400 million bond offering will fund a 65-room expansion of the hotel and construction of a 65,000-square-foot events center complete with an 864-person auditorium and horror film museum ― a nod to “The Shining,” which Stephen King was inspired to write after staying at The Stanley in 1974. The events center will be funded through a $46 million sales tax increment pledge from the Colorado Office of Economic Development and International Trade and the Colorado Economic Development Commission’s regional tourism act program, according to CECFA.”
• First-Time Home Buyers Are Struggling. That’s Bad News for Builders.
  • WSJ | “The median-price new home currently costs 1% less than a median existing property, compared with a 17% premium historically, based on data from UBS housing analyst John Lovallo. Limited supply for existing homes has pushed their prices up, and newly built homes have been shrinking in size to keep them affordable. Some first-time buyers are putting themselves into a vulnerable financial position to own a home. The delinquency rate on FHA mortgages, which tend to attract first-time buyers because of the loans’ small down-payment requirements, hit 11% in the first quarter, data from the Mortgage Bankers Association show. Barring a short-lived spike during the pandemic, this is the highest level since 2013. What is more, according to John Burns Research & Consulting, nearly 30% of all FHA mortgages being originated these days have a debt-service-to-income ratio exceeding 50%, meaning more than half of these buyers’ incomes is going toward servicing debt.”

ECONOMIC & EMPLOYMENT NEWS

• 3 Colorado Cities Landed on List of 100 Best Places to Live in U.S.: Here’s Why
  • Coloradoan | “A new study finds a lot to love along the Front Range, naming Loveland, Aurora and Colorado Springs to a list of the 100 best places to live in the U.S. The report from Livability, a website that highlights small-to-mid-sized cities, does not provide an outright ranking of the cities. It scores the communities in eight categories and then lets users create customized rankings by weighting the data based on what is important to them.”
    • Loveland: “Loveland’s public art programs, schools and hospitals were all highlighted by Livability. The city gets its highest marks for its education, economy and transportation.”
    • Aurora: “Aurora was lauded for its diversity, which the site says “carries through to its exceptional food scene.” It scored high for the economy, health and amenities in the city.”
    • Colorado Springs: “As the home of the Air Force Academy, multiple military installations and the U.S. Olympic and Paralympic Training Center, Colorado Springs gets high marks for transportation, housing and cost of living and education.”
• Loveland Getting Downtown Facelift
  • BizWest | “Work gained full steam during April on the $24.5 million Heart Improvement Plan for downtown Loveland, locally known as the “HIP Streets” project, a plan talked about for nearly 16 years that is designed to transform a five-block stretch of Fourth Street between Jefferson and Garfield avenues into a modern community hub. The project will be paid for through a mix of Utility Enterprise Funds and Certificates Of Participation. The utility funds, from the city’s stormwater, water and power systems, will contribute $12 million, while the remaining $12.5 million will come from the certificates paid by the Downtown Development Authority. No general funds will be used for the project. Through fall 2026, crews will replace 3,500 linear feet of aging infrastructure beneath Fourth Street’s surface, then upgrade the pavement and sidewalks above it. The first phase also calls for a makeover of the streetscape, including lighting, public art, new landscaping and decorative fencing. Each of four phases of construction will last six to eight months, starting with the two blocks east of Lincoln Avenue and then moving west.”
• Erie Ranks 15th in U.S. Population Growth (BizWest) & This Colorado City Had One of the Fastest Rates of Growth in America Last Year (Coloradoan)
  • BizWest | “The U.S. Census Bureau’s latest population estimates…reveal that Erie grew by 9.2% from July 1, 2023, to July 1, 2024. Erie’s population stands at 38,594, up 3,261 from 35,333 the prior year. Parker is the only other Colorado community to make the Top 100 for communities of 20,000 or more residents, achieving it just barely, ranking No. 100 nationwide, with 4.1% growth….While Erie was the fastest-growing Colorado community of 20,000 or more population, it was not tops among all cities and towns in the state. Among communities of all sizes, Elizabeth recorded the fastest-growth in Colorado, at 12.2%, with 2,773 residents, up from 2,471. Communities in the Boulder Valley and Northern Colorado recorded a mixed pattern or population growth. But perennial high-rankers Timnath, in Larimer County, and Severance, in Weld County, recorded the highest regional growth, with Timnath at 8.48% and Severance at 6.63%. Windsor recorded a 3.3% population increase, reaching a population of 41,734, up 1,342 from 40,392. Windsor ranked No. 143 nationwide for percentage growth. Loveland’s population grew by 1.99%, Broomfield, 1.68%, and Greeley at 1.5%. Population growth in Boulder, Fort Collins and Longmont was flat, at 0.16%, 0.11% and 0.72%, respectively.”
• Walmart Becomes Biggest Retailer Yet to Pass Through Tariff Price Increases
  • WSJ | “Trade war price increases are coming for American shoppers. Retail goliath Walmart on Thursday said it plans to raise prices this month and early this summer, when tariff-affected merchandise hits its store shelves. Some prices already have increased….Walmart, which counts 90% of Americans as customers, is the biggest company so far to signal that tariff-related price increases on everyday goods are coming….The full impact of tariffs hasn’t yet hit retailers’ shelves in part because many companies stockpiled goods ahead of the tariffs or postponed shipments from China. So far, the economic impact of tariffs has been muted in the U.S., with unemployment and inflation holding steady.”
• Annual Inflation Rate Hit 2.3% in April, Less Than Expected and Lowest Since 2021
  • CNBC | “The consumer price index…rose a seasonally adjusted 0.2% for the month, putting the 12-month inflation rate at 2.3%, its lowest since February 2021, the Bureau of Labor Statistics said. The monthly reading was in line with the Dow Jones consensus estimate while the 12-month was a bit below the forecast for 2.4%….Shelter prices again were the main culprit in pushing up the inflation gauge. The category, which makes about one-third of the index weighting, increased 0.3% in April, accounting for more than half the overall move, according to the BLS.”
• U.S. Loses Last Triple-A Credit Rating
  • WSJ | “Moody’s Ratings downgraded the U.S. government on Friday, citing large fiscal deficits and rising interest costs. Expanding budget deficits mean U.S. government borrowing will rise at an accelerating rate, pushing interest rates up over the long term, Moody’s said. The firm said Friday that it didn’t believe that any current budget proposals under consideration by lawmakers would do anything significant to reduce the persistent gap between government spending and revenues. The move strips the U.S. of its last remaining triple-A credit rating from a major ratings firm, following similar cuts by Fitch Ratings in 2023 and S&P Global Ratings in 2011. Moody’s downgraded the U.S. to Aa1, a rating also held by Austria and Finland.”

COMMUNITY & OTHER INDUSTRY NEWS

• Client Testimonials
• Larimer County’s Biggest Private Employers: Here’s Who Makes the List
• Old Town Square No. 4 in USA TODAY 10 Best Readers’ Choice Awards Best Public Squares List
• Most Peaceful Place to Live? Fort Collins Tops the List With Outdoor Recreation, Low Noise
• Here Are 15 Road Projects at the Top of Fort Collins’ List for the Next 10 Years.
• Fort Collins Area Chamber of Commerce: Northern Colorado Economic Overview
• Northern Colorado Boasts Nine of Top 20 Fastest-Growing Communities in State
• 2 Colorado Cities in Top 4 ‘Best Places to Live Rankings
• Denver International Airport Ranked No. 6 in Passenger Traffic Worldwide
• Support Your Local Bold Voice of Business by Contributing to the 13th Annual Moving Fort Collins Forward! Campaign

FEATURED LISTING

NAI Affinity is pleased to present these small, affordable flex work/storage warehouse units located conveniently off Hwy 287. 1,250± sf up to 1,375± sf to serve as your office, workshop, distribution warehouse, or collectable storage space. LifeSpace is a great option for flexibility, size, and affordability. Whether you need a small office, warehouse, and distribution space, or somewhere to store your prized collections, LifeSpace has you covered. LifeSpace flex work/storage units are constructed with top quality
materials and the latest building codes, creating spaces you can rely upon and be proud to own.

Click here to learn more about this high visibility and great location opportunity!

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