Steamboat Springs Market Update Q2 2022
The commercial real estate market traditionally follows residential market trends, at a slower pace. As the 2nd quarter ends, the buyer demand for commercial real estate still is in demand, but inventory is slow to come on the market. A little more than did in 2020 and 2021 for residential.
Still, Realtors® are reporting a surge in calls from investors and potential business owners seeking opportunities for Steamboat commercial units. Still warehouse and live/work units are in high demand. When and if they come on, the PPSF is $300-450.’ There are new developments coming out of the ground this summer, but are sold before they are even finished. There are more in the hopper, but will the market keep up with the cost of construction, we wonder?
Per the Steamboat Springs MLS there are only 12 commercial properties for sale (compared to thirty the first quarter) and 7 leases (compared to 18 the first quarter). No warehouse units or live/work units are on the market. There are a handful of units being offered off the market and are cooperating with brokers and are all sold.
Below are Averages that are from our Steamboat MLS:
- Average price-per-square foot on annual commercial leases for 2022 (All remaining the same average as the last year)
- Office rents are based on a gross lease and retail rents are NNN (triple net) leases, whereby the tenant will pay for taxes, common area expenses, and any interior improvements to the space. Warehouses vary, but the majority are NNN leases.
|2021 Q2||2022 Q2||%+-|
|VELOCITY (Source – RE Colorado MLS, Personal Statistics)|
|Commercial Sales Volume|
|CAP RATE||6%-6.5%||5.5 – 6 %|
|Range of NNN Rental Rates||Retail $17-$35′ / Office $18-$23 / Warehouse $15-$20′|
|SALES TAX INDICATORS (Source – )|
|All Sales Tax||$34,226,183||$16,817,940|
|Lodging Taxes||$701,099||$ 1,088,168|