GREELEY Q2 2020 · 7/28/2020 · The oil price war between Saudi Arabia and Russia threatens to oversupply oil markets, and social distancing policies are slashing demand for oil

GREELEY

MARKET REPORTOFFICE

Q2 2020

303.321.5888 UNIQUEPROP.COM

FULL-SERVICE COMMERCIAL REAL ESTATE SOLUTIONSPrivately-Owned and Operated for Over 40 Years

OFFICE MARKET REPORT

Market Key Statistics 2

Leasing 4

Rent 8

Construction 10

Under Construction Properties 11

Sales 12

Sales Past 12 Months 13

Economy 15

Market Submarkets 18

Supply & Demand Trends 20

Rent & Vacancy 22

Sale Trends 24

Greeley Office

7/28/2020Copyrighted report licensed to Unique Properties, Inc. - 1130503

OverviewGreeley Office

21.8 K (98.9 K) 4.9% 1.9%12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth

As Colorado slowly reopens its economy, all eyes will beon the reclamation of jobs this quarter to determine theshape of the recovery. The recent national Mayemployment data surprised to the upside, and couldbode well for the Denver, which outperformed thenational benchmark in April.

Initial unemployment claims in Colorado have climbedpast 550,000 since mid-March as the pandemic haswrought economic damage across job sectors,specifically in retail, leisure and hospitality, and energy.But the latest weekly jobless claims suggest the worst isin the rearview mirror. In the week ending on June 6, justunder 13,000 initial claims were filed for the secondstraight week. Continuing jobless claims as of May 23were at about 245,000, down from over 265,000 in theprior week.

Fiscal and monetary stimulus was quickly enacted toprovide a bridge for those impacted by the crisis, at leastin the short-term. The Governor's stay-at-home ordersexpired on April 26, although the counties of Denver,Broomfield, Adams, Arapahoe, and Jefferson extendedshelter-in-place orders through May 8.

Local officials are in agreement that the economy will bereopened in phases and social distancing policies willremain in place. The Governor has stated that all retailestablishments will be allowed to offer curbside deliverystarting on April 27, and certain businesses will be ableto open on May 1 with some restrictions. On May 4,large workplaces were allowed to open at 50 percent ofcapacity, and are recommended to screen workersbefore they enter the workplace.

The last time oil prices fell this low in 2016, Greeley'seconomy felt the impact. An oil price war between SaudiArabia and Russia caused prices to plummet to $20 abarrel in March. The fallout of the demand shock causedby the coronavirus led to oil prices hitting all-time lows inApril, even after the U.S. and Mexico agreed to cut oilproduction along with OPEC+. Oil markets haverebounded in May, hovering around $30 per barrel.

We will be updating our analysis frequently as moreinformation becomes available. The current report largelyreflects the environment before the pandemic.

Minimal new development alongside consistent demandfrom a host of smaller tenants translated intoexceptionally tight conditions: The vacancy rate wasaround 2.5% moving into the first quarter of 2020.

The availability rate did increase when State Farm isopted not to renew its lease at a 150,000 SF building inits three-building 460,000 SF regional campus, locatedin the far west of the city of Greeley proper.

With the market effectively at capacity, rents continued topost solid gains. Rents were growing above the long-term average at the start of 2020.

Aside from one large oil-related office delivery early inthis cycle and one large medical office currentlyunderway, development has been limited to severalbuildings in the 10,000 SF range, generally catered tomedical office tenants.


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OverviewGreeley Office

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption

SFDeliveries SF

UnderConstruction

$29.550%629,7104 & 5 Star 24.5% 0 0 0

$22.186.4%2,442,6403 Star 8.9% (47,406) 0 24,000

$13.964.5%2,592,9591 & 2 Star 5.3% (23,168) 0 0

$19.254.9%5,665,309Market 9.0% (70,574) 0 24,000

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

4.1%6.2%2.1%Vacancy Change (YOY) 12.3% 2002 Q3 0.4% 1999 Q4

17,056107,727(98.9 K)Net Absorption SF 446,461 2003 Q1 (112,264) 2002 Q3

20,485119,29921.8 KDeliveries SF 462,868 2003 Q1 9,048 2010 Q1

0.5%0.1%1.9%Rent Growth 8.2% 2015 Q1 -10.3% 2010 Q1

N/A$27.9M$48.4 MSales Volume $142.4M 2015 Q1 $0 2004 Q1


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LeasingGreeley Office

The lights are beginning to turn on in the office market.With large workplaces allowed to open at 50 percent ofcapacity as of May 4, many office workers will return toan environment conducive to social distancing practices.However, many will also continue to work from home inthe coming months, giving tenants and landlords moretime to ponder the long term viability of a remoteworkforce.

Greeley was on solid footing heading into 2020. Thevacancy rate ended the previous year at all-time lowsand well below the metro's long-term average as well asthe national benchmark. Net annual absorption waspositive for the past eight years.

The availability rate did jump when State Farm opted notto renew its lease at a 150,000 SF building in its three-building 460,000 SF regional campus, located in the farwest of the city of Greeley proper. Notably, the firm is notmaking material reductions to its headcount, but isinstead consolidating its employees into more a more

efficient space design at its remaining 310,000 SFspread over two buildings.

That space represented the first contiguous availability ofat least 50,000 SF stretching back more than five years,let alone 150,000 SF. The space single-handedlyrepresents about one-third of the available space in themetro, and was recently listed for $15/SF triple-net.

The fact that Greeley weathered the oil price downturn inlate 2014 without a more significant impact onfundamentals is impressive. The metro has a higherconcentration of natural resources and miningemployment than Houston. Moreover, Weld County is thesource of more than 75% of Colorado's oil production.Although Greeley has held up with weaker oil prices inthe past, market conditions have drastically changed.The oil price war between Saudi Arabia and Russiathreatens to oversupply oil markets, and social distancingpolicies are slashing demand for oil and gas.

NET ABSORPTION, NET DELIVERIES & VACANCY


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VACANCY RATE

AVAILABILITY RATE


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12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF

1st Qtr 2nd Qtr 4th Qtr 12 Month

Net Absorption SF

Weld County 11,822 0 0 11,822 0 0 11,822Greeley Endoscopy Center

Weld County 10,000 0 0 0 0 0 10,0001831 65th Ave

Weld County 11,820 0 0 6,242 0 0 6,242Bank of Colorado

Weld County 4,664 0 0 0 0 0 4,1768223-8225 20th St

Weld County 16,000 0 0 0 0 0 3,779Pumpkin Ridge

Weld County 68,500 5,778 0 3,718 0 0 3,718800 on 8th

Weld County 9,776 0 0 0 0 0 3,557Platte Valley Medical Plaza

Weld County 5,880 0 (1,374) 3,493 0 0 3,074BitterSweet Square Bldg 2

Weld County 6,000 0 0 2,856 0 0 2,8561349 Water Valley Pky

Weld County 9,636 0 0 0 0 0 2,6756222 W 9th St

Weld County 22,518 6,071 0 0 0 0 2,643Greeley Clinic

Weld County 7,488 0 2,010 0 0 0 2,423Windsor Manor Centre

Weld County 10,527 0 1,841 0 0 0 1,8411919 65th Ave

Weld County 1,976 0 0 0 0 0 1,3745 N Parish Ave

Weld County 5,180 0 0 0 0 0 1,372Tommy C's Square

Weld County 2,011 170 0 (170) 0 0 1,2281228 8th St

Weld County 5,032 0 0 0 0 0 1,224360 Oak Ave

208,830 12,019 2,477 27,961 0 0 64,004Subtotal Primary Competitors

5,456,479 263,026 (42,035) (38,496) (70,574) 0 (162,919)Remaining Greeley Market

5,665,309 275,045 (39,558) (10,535) (70,574) 0 (98,915)Total Greeley Market


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TOP OFFICE LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Compa… Leasing Rep CompanyQtr

Greeley Clinic Weld County 12,678 - - Elevation CompaniesQ1 20

Bank of Colorado Weld County 6,242 - - Realtec Commercial R…Q1 20

BitterSweet Square Bldg 2 Weld County 4,060 Autism Support Systems - LC Real Estate Group…Q1 20

1349 Water Valley Pky Weld County 2,856 Water Valley Dental - Wheeler Properties, IncQ4 19

University Acres Professional Building Weld County 2,850 - - Wheeler Properties, IncQ2 20

Greeley Technology Center Weld County 2,344 - - RE/MAX Commercial A…Q1 20

Hiland Park Weld County 2,148 Bighorn Construction and… - Realtec Commercial R…Q4 19

BitterSweet Square Bldg 2 Weld County 2,119 Colorado Treatment Servi… Pro Realty Inc. LC Real Estate Group…Q2 20

Windsor Manor Centre Weld County 2,010 - - Pepe-Samsam Investm…Q1 20

Mountain Vista Weld County 1,766 Greeley Hearing Centers - Wheeler Properties, IncQ3 20

BitterSweet Square Bldg 5 Weld County 1,547 Eclipse Software - Doberstein Lemburg C…Q4 19

BitterSweet Square Bldg 2 Weld County 1,374 Colorado Treatment Servi… Pro Realty Inc. LC Real Estate Group…Q2 20

Tommy C's Square Weld County 1,372 - - Wheeler Properties, IncQ3 19

Independence Square Greeley 1,300 - - RE/MAX Commercial A…Q4 19

4673 W 20th St Weld County 1,286 Carsco, Inc Rouse Realty Cushman & WakefieldQ3 20

Tommy C's Square Weld County 1,252 Legacy Builder - Wheeler Properties, IncQ1 20

Tommy C's Square Weld County 1,237 - - Wheeler Properties, IncQ3 20

515 Briggs St Weld County 1,200 - - Market Real EstateQ4 19

Indian Peaks Indust. Park Weld County 1,050 TorcSill Foundations, LLC C3 Commercial Cushman & WakefieldQ4 19

Miners Square Weld County 1,000 - - RE/MAX MomentumQ3 19

The Greeley Building Weld County 831 - - Thomas & Tyler, LLCQ1 20

900-920 9th Ave Greeley 800 - - Jessie JacobsQ1 20

918 13th St Weld County 789 - - Realtec Commercial R…Q3 19

918 13th St Weld County 700 - - Realtec Commercial R…Q1 20





Independence Square Greeley 256 - - RE/MAX Commercial A…Q1 20

Tommy C's Square Weld County 250 - - Wheeler Properties, IncQ3 19

Tommy C's Square Weld County 250 - - Wheeler Properties, IncQ3 19

Northern Colorado Veterans Resourc… Weld County 196 - - Northern Colorado Vet…Q4 19


Del Camino Junction Bus Weld County 150 01/31/2020 - RE/MAX NexusQ1 20

Del Camino Junction Bus Weld County 150 Surgical Products Inc - RE/MAX NexusQ3 19

Del Camino Junction Bus Weld County 143 - - RE/MAX NexusQ1 20



Del Camino Junction Bus Weld County 112 Renner Group LLC - RE/MAX NexusQ1 20

Del Camino Junction Bus Weld County 109 Surgical Products Inc - RE/MAX NexusQ3 19

Renewal


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RentGreeley Office

With leasing activity slowing in the near term, rentobservations will be increasingly rare to come across.However, tenants willing to test the waters in this time ofuncertainty may be able to take advantage of space onthe market as valuations become more difficult to gauge.

Office rents have surged across many Front Rangemetros this cycle, but have largely missed Greeley.Exposure to volatile oil markets could be to blame. Rentgrowth peaked this cycle in 2014, right before the oildownturn, and have been fairly pedestrian ever since.

The Greeley office market was as tight as it has everbeen entering 2020, and landlords theoretically would

have wielded the upper hand in negotiations pre-pandemic. Out of just over 200 metro areas with at leastfive million SF of office space, only a handful had a lowervacancy than Greeley.

One of the only recent deliveries not catered towardsmedical-office users was a 12,000 SF partiallyspeculative office that is anchored by a 6,000 SF Bank ofColorado. The rest of the space had been on the marketfor $22/SF triple-net, but were later dropped to $19/SFNNN. Even after the rent reduction, this was still themost expensive office space for lease in the metro at thetime.

MARKET RENT GROWTH (YOY)


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RentGreeley Office

MARKET RENT PER SQUARE FEET

4 & 5 STAR EXPENSES PER SF (ANNUAL)

Utilities Cleaning InsuranceMarket / Cluster Taxes Other Total

Greeley $0.97 $0.15$0.46 $5.27 $4.96 $11.81

Weld County $0.97 $0.15$0.46 $5.27 $4.96 $11.81

Expenses are estimated using NCREIF, Trepp, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.

3 STAR EXPENSES PER SF (ANNUAL)


Greeley $0.82 $0.11$0.41 $4.13 $2.57 $8.04

Weld County $0.82 $0.11$0.41 $4.13 $2.57 $8.04


1 & 2 STAR EXPENSES PER SF (ANNUAL)


Greeley $0.54 $0.11$0.41 $2.52 $1.07 $4.65

Weld County $0.54 $0.11$0.41 $2.52 $1.07 $4.65



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ConstructionGreeley Office

The coronavirus pandemic is having an unprecedentedimpact on the national and local economies. We will beupdating our analysis frequently as more informationbecomes available. The current report largely reflects theenvironment before the pandemic.

Since the beginning of 2014, the office inventory hascumulatively expanded by just under 2%, the lowest levelin the Front Range outside of Colorado Springs, wherethe inventory has expanded by less than 1%. Of the

buildings that have delivered since 2015, all but one wassmaller than 13,000 SF. Many of these smaller buildingsare catered towards medical office tenants.

One of the only traditional speculative offices recentlydelivered was a 12,000-SF building anchored by a6,000-SF Bank of Colorado. This development is fivemiles due west of downtown Greeley, in an areaexperiencing rapid growth alongside active single-familydevelopment.

DELIVERIES & DEMOLITIONS

SUBMARKET CONSTRUCTION

Average Building Size

RankUnder Constr

Under Construction Inventory

All ExistingSF (000) Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %

1 Weld County 1 24 24,000100% 1 9,58624 1

Totals 1 24 24,000100% 9,58624


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Under Construction PropertiesGreeley Office

1 24,000 0.4% 100%Properties Square Feet Percent of Inventory Preleased

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Jun 201911521 21st St

Highpointe Office Building24,000 2 Aug 2020

-

PB Roche Solutions1


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SalesGreeley Office

Investment activity has slowed dramatically in the nearterm as the financial impact of the coronavirus isassessed.

Based on CoStar's Market Pricing Trends, valuescontinued to rise at a modest pace in 2019. At the sametime, cap rates have remained relatively flat as they havefor the past five years, but at more than 8%, the yieldsare some of the highest in the Front Range. Most recentdeals have involved small office buildings valued under$1 million, but there was a major trade for one of the fewGreeley assets with more than 100,000 SF of officespace.

In September, CIM Group acquired OccidentalPetroleum's 115,000 SF office building in Platteville (inthe Denver-Julesburg Basin) for approximately $32.3million ($282/SF). The building delivered in Platteville in2014 and was fully occupied by Occidental, which usesthe space as a mission critical operations center.

A trade for a building within the BitterSweet Square officepark represents a more typical trade in Greeley.Wyoming-based FirsTier Bank acquired the 7,680 SFasset from DS&K Investments for $850,000 in April. Theseller previously made capital improvements to theproperty and procured several tenants. The reported caprate was around 8.3%.

SALES VOLUME & MARKET SALE PRICE PER SF


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Sales Past 12 MonthsGreeley Office

32 8.1% $228 1.7%Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $135,000 $4,328,486 $411,500 $32,250,000

Price/SF $95 $228 $151 $315

Cap Rate 7.5% 8.1% 8.1% 8.7%

Time Since Sale in Months 1.0 7.8 8.5 11.5

Property Attributes Low Average Median High

Building SF 957 16,280 6,688 114,524

Stories 1 1 1 3

Typical Floor SF 957 7,431 6,080 23,400

Vacancy Rate At Sale 0% 1.7% 0% 100%

Year Built 1905 1979 1996 2014

Star Rating 2.5


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Sales Past 12 MonthsGreeley Office

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 Occidental2014 114,524 0% $32,250,000 $282

501 N Division Blvd9/23/2019 -

-2 UCHealth Peakview Medi…2002 23,400 0% $5,000,000 $214

5881 W 16th St6/29/2020 -

-3 1901 56th Ave1996 21,581 0% $3,000,000 $13911/14/2019 8.7%

-4 6222 W 9th St2004 9,636 0% $1,300,000 $13512/30/2019 -

-5 1813 61st Ave2007 3,759 0% $1,185,000 $31512/2/2019 -

-6 1931 65th Ave2003 4,497 0% $756,850 $1689/9/2019 -

-7 Hiland Park Office Comp…2005 2,671 0% $650,000 $243

1825 56th Ave1/30/2020 -

-8 4075 W 11th St1985 4,320 100% $485,000 $11212/26/2019 -

-9 3000 Airport Dr1980 2,500 0% $445,000 $1781/7/2020 -

-10 1815 65th Ave2004 2,362 0% $425,000 $1802/20/2020 -

-11 College Green2005 2,850 0% $425,000 $149

4665 W 20th St10/10/2019 -

-9 3000 Airport Dr1980 2,500 0% $380,000 $1523/17/2020 -

-12 8223-8225 20th St2005 3,062 65.7% $380,000 $1249/9/2019 -

-13 4645 W 18th St1993 2,482 0% $362,773 $1468/12/2019 -

-14 5 N Parish Ave1919 1,976 0% $338,000 $1718/30/2019 -

-15 119 Main St1906 3,380 0% $320,000 $955/1/2020 -

-13 4645 W 18th St1993 1,487 0% $317,227 $2138/12/2019 7.5%

-16 130 N 6th St1905 2,630 0% $315,000 $1202/18/2020 -

-11 College Green2005 2,000 0% $252,500 $126

4665 W 20th St2/20/2020 -

-17 Pumpkin Ridge2005 1,236 0% $245,865 $199

6200 W 9th St11/14/2019 -


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EconomyGreeley Office

As Colorado slowly reopens its economy, all eyes will beon the reclamation of jobs this quarter to determine theshape of the recovery. The recent national Mayemployment data surprised to the upside, and couldbode well for the Denver, which outperformed thenational benchmark in April.

Initial unemployment claims in Colorado have climbedpast 550,000 since mid-March as the pandemic haswrought economic damage across job sectors,specifically in retail, leisure and hospitality, and energy.But the latest weekly jobless claims suggest the worst isin the rearview mirror. In the week ending on June 6, justunder 13,000 initial claims were filed for the secondstraight week. Continuing jobless claims as of May 23were at about 245,000, down from over 265,000 in theprior week.

Fiscal and monetary stimulus was quickly enacted toprovide a bridge for those impacted by the crisis, at leastin the short-term. The Governor's stay-at-home ordersexpired on April 26, although the counties of Denver,Broomfield, Adams, Arapahoe, and Jefferson extendedshelter-in-place orders through May 8.

Local officials are in agreement that the economy will bereopened in phases and social distancing policies willremain in place. The Governor has stated that all retailestablishments will be allowed to offer curbside deliverystarting on April 27, and certain businesses will be ableto open on May 1 with some restrictions. On May 4,large workplaces were allowed to open at 50 percent ofcapacity, and are recommended to screen workersbefore they enter the workplace.

The last time oil prices fell this low in 2016, Greeley'seconomy felt the impact. An oil price war between SaudiArabia and Russia caused prices to plummet to $20 abarrel in March. The fallout of the demand shock causedby the coronavirus led to oil prices hitting all-time lows inApril, even after the U.S. and Mexico agreed to cut oilproduction along with OPEC+. Oil markets haverebounded in May, hovering around $30 per barrel.

We will be updating our analysis frequently as more

information becomes available. The current report largelyreflects the environment before the pandemic.

Greeley's economy returned to above-average growth inrecent quarters. Employment rose by more than 2.5% atthe end of 19Q4, outperforming the national average bymore than 100 basis points.

Recent oil price volatility is a major concern for Greeley.Nearly 6% of current non-farm jobs in the metro are innatural resources and mining employment, representingthe second-highest concentration of such jobs out of the200 largest metro areas. Four of the 10 largestemployers in the metro, Halliburton Energy Services,Noble Energy, Anadarko Petroleum, and Select EnergyServices (all based out of Houston, Texas), are oil andgas exploration and production companies.

Natural Resources, Mining and Construction jobsincreased by nearly 2% in 2019, outperforming thenational average. Solid job gains were also seen inindustries such as Education and Health Services,Leisure and Hospitality, and Professional and BusinessServices. Manufacturing jobs also continued to sustainmomentum despite slowing growth on a national level.

Over the last six years, the metro's population soared byroughly 15%, one of the fastest growth rates in the FrontRange, and more than three times the national average.Although population growth is down from earlier cyclicalhighs, at the end of 19Q4 the metro population wasgrowing nearly three times as fast as the nationalaverage.

Much of the explosive growth in the Greeley metro isoccurring in far southwest Weld County, near Longmont,and easily within commuting distance to central Boulder.Cities here such as Erie, Firestone, and Frederick eachsaw cumulative population growth of 22% or more overthe past six years, and residential development isexploding. The Southwest Weld County apartmentsubmarket illustrates the dramatic growth here: Themarket-rate apartment stock grew from less than 150units at the start of 2016, to over 1,500 units by year-end 2019.


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GREELEY EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Level 12 Month Change 10 Year Change 5 Year Forecast

1.36%1.56%0.15%2.70%-8.83%-5.29%1.513Manufacturing

2.15%2.16%0.09%2.73%-10.53%-8.28%0.918Trade, Transportation and Utilities

2.59%2.60%-0.55%2.28%-12.52%-11.50%0.99 Retail Trade

0.78%1.10%1.13%0.48%-1.47%0.67%0.75Financial Activities

0.87%2.01%-0.47%0.84%-4.27%-4.78%1.017Government

2.04%2.76%1.97%7.74%-8.10%-7.97%3.420Natural Resources, Mining and Construction

2.79%2.73%1.18%1.59%-7.10%-8.12%0.610Education and Health Services

2.55%4.11%1.55%3.77%-8.27%-11.12%0.610Professional and Business Services

2.09%3.24%-0.12%-4.01%-6.37%-13.34%0.31Information

10.20%4.64%-2.43%2.42%-38.38%-14.94%1.18Leisure and Hospitality

3.57%3.56%-0.85%1.80%-16.97%-10.02%0.93Other Services

Total Employment 104 1.0 -7.87% -11.15% 2.88% 0.27% 2.63% 2.72%

Source: Oxford Economics

LQ = Location Quotient


YEAR OVER YEAR JOB GROWTH


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DEMOGRAPHIC TRENDS

12 Month ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10 Year Change

Metro U.S. Metro U.S.

5 Year Forecast

Population 329,740,031329,138 1.9% 0.5% 2.6% 0.6% 1.5% 0.5%

Households 122,429,844112,653 1.8% 0.4% 2.4% 0.7% 1.4% 0.4%

Median Household Income $64,482$80,390 2.0% 1.9% 4.2% 2.6% 2.4% 2.7%

Labor Force 158,090,938163,660 -3.6% -3.1% 2.2% 0.3% 1.9% 1.1%

Unemployment 13.4%10.2% 7.7% 9.8% 0.1% 0.4% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH


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SubmarketsGreeley Office

GREELEY SUBMARKETS


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SubmarketsGreeley Office

SUBMARKET INVENTORY

12 Month Deliveries Under Construction as % of Inventory

Bldgs SF (000) Percent Rank

Inventory

Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.

1 Weld County 5,665 100% 1 1 24 0.4% 1591 2 22 0.4% 1

SUBMARKET RENT

Growth

Market Rent

Per SFSubmarketNo.

12 Month Market Rent QTD Annualized Market Rent

RankRank GrowthRank

1 Weld County -0.6%1 1.9% 1$19.25 1

SUBMARKET VACANCY & NET ABSORPTION

12 Month Absorption

Rank Construc. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 Weld County 275,045 4.9% -(98,915) -1.7% 11


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Supply & Demand TrendsGreeley Office

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 22,523 0.4% 0.7%41,998 0.55,745,181

2023 20,157 0.4% 0.8%47,001 0.45,722,658

2022 12,661 0.2% 0.9%53,922 0.25,702,501

2021 845 0% 0.3%19,912 05,689,840

2020 35,508 0.6% -1.9%(109,971) -5,688,995

YTD 11,822 0.2% -2.1%(120,667) -5,665,309

2019 13,924 0.2% 0.9%49,937 0.35,653,487

2018 42,681 0.8% 0.8%43,845 1.05,639,563

2017 22,980 0.4% 0.4%22,981 1.05,596,882

2016 16,970 0.3% 1.9%104,409 0.25,573,902

2015 28,201 0.5% 0.9%52,471 0.55,556,932

2014 144,454 2.7% 3.5%195,173 0.75,528,731

2013 55,152 1.0% 1.0%55,997 1.05,384,277

2012 175,764 3.4% 4.7%252,882 0.75,329,125

2011 19,590 0.4% -0.9%(44,431) -5,153,361

2010 111,281 2.2% 2.3%118,955 0.95,133,771

2009 9,048 0.2% -0.6%(28,543) -5,022,490

2008 48,540 1.0% 0.3%15,825 3.15,013,442

4 & 5 STAR SUPPLY & DEMAND



2024 24,218 3.6% 3.3%22,638 1.1692,977

2023 21,863 3.4% 2.7%18,135 1.2668,759

2022 14,468 2.3% 1.8%11,572 1.3646,896

2021 2,718 0.4% 0.1%357 7.6632,428

2020 11,822 1.9% 1.6%10,354 1.1629,710

YTD 11,822 1.9% 1.9%11,822 1.0629,710

2019 10,000 1.6% 1.6%10,000 1.0617,888

2018 0 0% -- -607,888

2017 0 0% -- -607,888

2016 0 0% 2.0%12,000 0607,888

2015 0 0% -- -607,888

2014 114,524 23.2% 18.8%114,524 1.0607,888

2013 36,000 7.9% 4.9%24,000 1.5493,364

2012 0 0% -- -457,364

2011 0 0% -- -457,364

2010 0 0% -- -457,364

2009 0 0% -- -457,364

2008 0 0% -- -457,364


Page 20

Supply & Demand TrendsGreeley Office

3 STAR SUPPLY & DEMAND



2024 256 0% 0.4%9,630 02,467,326

2023 241 0% 0.6%14,191 02,467,070

2022 165 0% 1.0%24,425 02,466,829

2021 24 0% 0.9%21,933 02,466,664

2020 24,000 1.0% -2.1%(52,331) -2,466,640

YTD 0 0% -2.8%(69,556) -2,442,640

2019 3,924 0.2% 1.5%36,755 0.12,442,640

2018 42,681 1.8% 0.8%18,993 2.22,438,716

2017 18,980 0.8% 0.3%7,703 2.52,396,035

2016 16,970 0.7% 4.0%94,577 0.22,377,055

2015 28,201 1.2% 0.1%2,681 10.52,360,085

2014 18,460 0.8% 1.6%37,211 0.52,331,884

2013 14,193 0.6% 0.5%12,300 1.22,313,424

2012 178,777 8.4% 10.1%231,831 0.82,299,231

2011 14,438 0.7% -1.2%(24,390) -2,120,454

2010 118,389 6.0% 5.8%122,211 1.02,106,016

2009 0 0% -1.2%(23,010) -1,987,627

2008 49,640 2.6% 3.2%62,615 0.81,987,627

1 & 2 STAR SUPPLY & DEMAND



2024 (1,951) -0.1% 0.4%9,730 -2,584,878

2023 (1,947) -0.1% 0.6%14,675 -2,586,829

2022 (1,972) -0.1% 0.7%17,925 -2,588,776

2021 (1,897) -0.1% -0.1%(2,378) -2,590,748

2020 (314) 0% -2.6%(67,994) -2,592,645

YTD 0 0% -2.4%(62,933) -2,592,959

2019 0 0% 0.1%3,182 02,592,959

2018 0 0% 1.0%24,852 02,592,959

2017 4,000 0.2% 0.6%15,278 0.32,592,959

2016 0 0% -0.1%(2,168) -2,588,959

2015 0 0% 1.9%49,790 02,588,959

2014 11,470 0.4% 1.7%43,438 0.32,588,959

2013 4,959 0.2% 0.8%19,697 0.32,577,489

2012 (3,013) -0.1% 0.8%21,051 -2,572,530

2011 5,152 0.2% -0.8%(20,041) -2,575,543

2010 (7,108) -0.3% -0.1%(3,256) -2,570,391

2009 9,048 0.4% -0.2%(5,533) -2,577,499

2008 (1,100) 0% -1.8%(46,790) -2,568,451


Page 21

Rent & VacancyGreeley Office

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 110 0.9% 2.1%$19.60 184,006 3.2% -0.3%

2023 109 1.8% 1.2%$19.43 202,846 3.5% -0.5%

2022 107 2.5% -0.6%$19.08 229,045 4.0% -0.7%

2021 104 -0.8% -3.0%$18.62 269,640 4.7% -0.3%

2020 105 -2.2% -2.2%$18.77 288,051 5.1% 2.5%

YTD 108 0.3% 0.3%$19.25 275,045 4.9% 2.3%

2019 107 3.4% 0%$19.19 142,556 2.5% -0.6%

2018 104 4.7% -3.3%$18.56 178,569 3.2% 0%

2017 99 4.7% -7.6%$17.73 179,733 3.2% 0%

2016 95 2.3% -11.8%$16.93 179,734 3.2% -1.6%

2015 93 4.1% -13.8%$16.55 267,173 4.8% -0.7%

2014 89 6.2% -17.2%$15.89 303,263 5.5% -1.1%

2013 84 -2.0% -22.1%$14.96 353,982 6.6% -0.1%

2012 85 0.3% -20.5%$15.26 354,827 6.7% -1.7%

2011 85 -1.8% -20.7%$15.21 431,945 8.4% 1.2%

2010 87 -5.1% -19.3%$15.49 367,924 7.2% -0.3%

2009 91 -8.6% -15.0%$16.32 375,598 7.5% 0.7%

2008 100 -0.2% -7.0%$17.86 338,007 6.7% 0.6%

4 & 5 STAR RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 128 0.8% 3.3%$30.28 11,987 1.7% 0.2%

2023 127 1.8% 2.4%$30.03 10,419 1.6% 0.5%

2022 125 2.6% 0.6%$29.49 6,703 1.0% 0.4%

2021 122 -0.6% -2.0%$28.74 3,821 0.6% 0.4%

2020 123 -1.4% -1.4%$28.91 1,468 0.2% 0.2%

YTD 125 0.8% 0.8%$29.55 0 0% 0%

2019 124 2.1% 0%$29.32 0 0% 0%

2018 122 7.2% -2.0%$28.73 0 0% 0%

2017 114 4.8% -8.6%$26.80 0 0% 0%

2016 108 0.1% -12.8%$25.57 0 0% -2.0%

2015 108 1.6% -12.9%$25.53 12,000 2.0% 0%

2014 107 5.4% -14.3%$25.14 12,000 2.0% -0.5%

2013 101 -0.8% -18.7%$23.85 12,000 2.4% 2.4%

2012 102 5.1% -18.0%$24.04 0 0% 0%

2011 97 -2.4% -22.0%$22.88 0 0% 0%

2010 99 2.1% -20.0%$23.45 0 0% 0%

2009 97 -2.7% -21.7%$22.95 0 0% 0%

2008 100 6.3% -19.6%$23.59 0 0% 0%


Page 22

Rent & VacancyGreeley Office

3 STAR RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 108 0.9% 1.9%$22.52 94,534 3.8% -0.4%

2023 107 1.8% 0.9%$22.31 103,910 4.2% -0.6%

2022 105 2.4% -0.9%$21.92 117,862 4.8% -1.0%

2021 102 -0.9% -3.2%$21.40 142,125 5.8% -0.9%

2020 103 -2.3% -2.3%$21.60 164,033 6.7% 3.1%

YTD 106 0.3% 0.3%$22.18 157,261 6.4% 2.8%

2019 106 4.8% 0%$22.11 87,705 3.6% -1.4%

2018 101 4.6% -4.6%$21.10 120,536 4.9% 0.9%

2017 96 3.9% -8.8%$20.17 96,848 4.0% 0.4%

2016 93 2.9% -12.2%$19.42 85,571 3.6% -3.3%

2015 90 8.0% -14.6%$18.88 163,178 6.9% 0.5%

2014 84 5.3% -20.9%$17.48 149,478 6.4% -0.9%

2013 79 -0.7% -24.9%$16.59 168,229 7.3% 0%

2012 80 -1.2% -24.4%$16.72 166,336 7.2% -3.1%

2011 81 3.2% -23.5%$16.92 219,390 10.3% 1.8%

2010 78 -9.9% -25.8%$16.40 180,562 8.6% -0.7%

2009 87 -12.9% -17.7%$18.20 184,384 9.3% 1.2%

2008 100 -3.4% -5.4%$20.91 161,374 8.1% -0.9%

1 & 2 STAR RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 105 0.9% 2.0%$14.24 77,485 3.0% -0.4%

2023 104 1.9% 1.1%$14.10 88,517 3.4% -0.6%

2022 102 2.5% -0.8%$13.85 104,480 4.0% -0.7%

2021 100 -0.8% -3.1%$13.51 123,694 4.8% 0%

2020 101 -2.3% -2.3%$13.63 122,550 4.7% 2.6%

YTD 103 0% 0%$13.96 117,784 4.5% 2.4%

2019 103 2.0% 0%$13.95 54,851 2.1% -0.1%

2018 101 3.6% -2.0%$13.68 58,033 2.2% -1.0%

2017 97 5.9% -5.4%$13.20 82,885 3.2% -0.4%

2016 92 2.6% -10.7%$12.46 94,163 3.6% 0.1%

2015 90 0.2% -13.0%$12.15 91,995 3.6% -1.9%

2014 89 7.9% -13.1%$12.13 141,785 5.5% -1.3%

2013 83 -4.4% -19.5%$11.24 173,753 6.7% -0.6%

2012 87 0.2% -15.8%$11.75 188,491 7.3% -0.9%

2011 86 -7.6% -15.9%$11.73 212,555 8.3% 1.0%

2010 94 -1.6% -9.0%$12.70 187,362 7.3% -0.1%

2009 95 -4.8% -7.5%$12.91 191,214 7.4% 0.5%

2008 100 2.1% -2.8%$13.56 176,633 6.9% 1.8%


Page 23

Sale TrendsGreeley Office

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2024 -- - -- 155- $175.86 8.4%

2023 -- - -- 153- $173.48 8.4%

2022 -- - -- 149- $168.51 8.4%

2021 -- - -- 141- $160.31 8.6%

2020 -- - -- 142- $161.30 8.8%

YTD $7.7M9 0.8% $189.09$1,442,500 150- $170.60 8.5%

2019 $54.6M39 7.1% $198.30$2,739,808 1498.1% $168.95 8.5%

2018 $38.5M52 7.4% $102.34$820,389 1457.8% $164.94 8.4%

2017 $18.9M37 4.2% $93.53$634,290 1417.0% $160.10 8.3%

2016 $52.9M39 6.2% $159.16$1,643,626 1358.1% $153.08 8.4%

2015 $16M47 6.7% $57.89$538,215 1308.6% $147.08 8.5%

2014 $139.8M54 19.8% $141.30$3,301,565 1247.3% $140.48 8.5%

2013 $92.9M40 15.4% $120.85$3,394,511 1149.9% $129.30 8.9%

2012 $20.6M24 3.4% $131.82$1,400,929 1108.9% $124.67 9.1%

2011 $5.4M27 2.9% $70.15$473,670 1049.1% $118.39 9.4%

2010 $35.2M13 3.5% $200.91$4,828,429 969.2% $108.67 10.0%

2009 $3.3M6 0.9% $72.11$694,690 85- $96.44 11.1%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

4 & 5 STAR SALES





2024 -- - -- 154- $330.14 7.4%

2023 -- - -- 152- $325.87 7.4%

2022 -- - -- 147- $316.42 7.4%

2021 -- - -- 140- $300.05 7.6%

2020 -- - -- 140- $300.69 7.8%

YTD -- - -- 148- $318.06 7.5%

2019 $32.3M1 18.5% $281.60$32,250,000 147- $316.06 7.5%

2018 -- - -- 144- $309.71 7.4%

2017 -- - -- 139- $299.28 7.3%

2016 -- - -- 135- $289.10 7.3%

2015 -- - -- 130- $279.95 7.4%

2014 $60.8M3 75.2% $132.94$20,266,662 124- $266.57 7.4%

2013 $53.1M3 92.7% $116.07$17,696,000 116- $248.58 7.7%

2012 -- - -- 111- $239.30 7.9%

2011 -- - -- 108- $232.03 8.1%

2010 -- - -- 98- $211.01 8.6%

2009 -- - -- 86- $185.10 9.6%




Page 24

Sale TrendsGreeley Office

3 STAR SALES





2024 -- - -- 151- $201.73 8.1%

2023 -- - -- 149- $198.97 8.1%

2022 -- - -- 145- $193.28 8.1%

2021 -- - -- 138- $183.90 8.3%

2020 -- - -- 139- $185.15 8.5%

YTD $5.7M2 1.1% $216.72$5,000,000 147- $196.23 8.2%

2019 $13.6M23 7.8% $156.49$1,286,786 1458.1% $194.27 8.1%

2018 $25.8M21 8.9% $134.20$1,517,857 1427.5% $189.77 8.1%

2017 $8.1M11 3.1% $149.13$1,578,340 1397.0% $185.52 8.0%

2016 $28.1M16 4.6% $288.05$3,262,584 133- $177.61 8.0%

2015 $8.7M14 7.4% $62.99$1,104,714 1289.1% $170.36 8.1%

2014 $67.3M14 15.6% $198.20$6,714,208 1217.3% $162.25 8.2%

2013 $24.6M16 8.6% $132.03$2,380,352 113- $150.94 8.5%

2012 $16.1M9 3.8% $198.54$5,033,000 1108.9% $146.98 8.6%

2011 $1.5M16 3.9% $100.67$1,000,000 104- $138.60 9.0%

2010 $33.9M8 7.5% $221.36$10,833,667 959.2% $126.44 9.6%

2009 $970K3 0.4% $124.44$440,000 84- $112.85 10.6%



1 & 2 STAR SALES





2024 -- - -- 163- $113.81 8.9%

2023 -- - -- 161- $112.24 8.9%

2022 -- - -- 156- $109.04 9.0%

2021 -- - -- 149- $103.94 9.2%

2020 -- - -- 150- $104.78 9.3%

YTD $2M7 0.7% $139.39$256,667 158- $110.37 9.0%

2019 $8.8M15 3.6% $118.34$805,904 156- $109.37 9.0%

2018 $12.7M31 7.8% $69.02$458,739 1528.8% $106.40 8.9%

2017 $10.8M26 6.3% $73.17$437,613 146- $102.36 8.9%

2016 $24.9M23 9.1% $105.74$1,080,510 1398.1% $96.95 9.0%

2015 $7.3M33 7.5% $52.83$339,940 1337.5% $92.88 9.1%

2014 $11.7M37 10.5% $60.74$369,782 128- $89.35 9.1%

2013 $15.2M21 6.7% $121.66$1,054,305 1149.9% $79.96 9.6%

2012 $4.5M15 3.7% $60.04$410,364 108- $75.82 9.9%

2011 $3.9M11 2.7% $62.98$415,189 1039.1% $71.76 10.2%

2010 $1.3M5 0.9% $58.88$324,500 96- $67.07 10.8%

2009 $2.3M3 1.5% $61.40$779,587 85- $59.47 11.9%




Page 25

GREELEY Q2 2020 · 7/28/2020 · The oil price war between Saudi Arabia and Russia threatens to oversupply oil markets, and social distancing policies are slashing demand for oil

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