A Look at the Numbers
Office:
Quarter-to-date 2020 has shown considerable negative net-absorption suggesting that large floorplate office will be seeking efficiency and downsizing when the opportunity presents itself. We expect renewals for less square footage and downsizing negotiations to be prevalent in the second half of 2020 as the office market re-calibrates to the post-COVID market. For the full Costar Group report, click here.
Industrial:
Coming off of record-high industrial sales volume in 2019, NoCo is looking to level-off as the market assesses the impact of reduced oil and gas prices and the effects of COVID-19. For the full Costar Group report, click here.
Retail:
It's no surprise that retail was heavily impacted by the pandemic, and we expect it to be the hardest hit sector. Current quarter-to-date data shows that absorption and rent growth have decreased considerably in comparison to the 3-year average. Although, with the various stimulus packages and Landlord rent deferrals, vacancy numbers and market lease rates haven’t started to reflect the difficult conditions in the retail/restaurant sector. For the full Costar Group report, click here.
Multifamily:
Considering the pandemic, the multifamily market has remained tight and virtually unchanged when comparing the 3-year averages to current, 2 nd quarter-to-date 2020 data. For the full Costar Group report, click here.


According to the National Multifamily Housing Council, 94% of apartment households made a full or partial rent payment bu June 27th, 2020 in a survey of 11.1 million units, a 0.50% decrease from 2019
National Multifamily Housing Council | NMHC.org
Notable Market Comps
237-243 Jefferson Street
Fort Collins, CO
  • Buyer: Willow View LLC
  • True Buyer: Spirae, Inc. 
  • Seller: Forge LLC
  • Date: April 3, 2020
  • Size: 11,000 SF
  • Price: $1,650,000 (150.00/sf)
  • Notes: 237 and 243 Jefferson Street located in Fort Collins Colorado are two retail buildings that recently transferred ownership. The combined square feet sold is 11,000 square feet at a price of $1,650,000, or $150 per square foot. 237 Jefferson Street is a two floor 6,950 square foot property and 243 Jefferson Street is a 4,050 square foot, one floor property. 
2665 W. Eisenhower Boulevard Loveland, CO
  • Buyer: JAX Loveland West, LLC
  • Seller: AKMS, LP
  • Date: April 28, 2020
  • Size: 91,191 SF retail building situated on 7.85 acres and 1.53 acre parcel of vacant land
  • Price: $4,950,000 ($54.27/sf)
  • Notes: The building originally delivered in 1980; there was no reported deferred maintenance. The building was 100% occupied by K-Mart until the close of escrow; buyer will be an owner/user dba JAX, and will occupy the building when the tenant improvements are completed.
608 E. Harmony Road
Fort Collins, CO
  • Date: April 10, 2020
  • Size: 14,294 SF
  • Price: $3,820,000 ($267.24/sf)
  • Cap Rate 6.70%
  • Notes: Investment sale. Property delivered in 2007. 
4650 Signal Tree Drive unit #1200 Timnath, CO
  • Buyer: Verus Bank
  • Seller: The Neenan Company
  • Date: May 12, 2020
  • Size: 5,492 SF
  • Price: $1,960,920 ($357.05/sf)
  • Notes: Retail condo unit delivered in 2019. The unit was vacant at the time of sale. The buyer, Versus Bank of Commerce, is expected to move sometime close to Q4 2020.
Multifamily Corner
Bonus Depreciation: The Limited Time Offer You Should Take Advantage Of
Max Flats | Fort Collins, Colorado
If you own a multi-family property, then historically your accountant has been depreciating the building on a 27.5 year schedule, meaning that after subtracting out the value of the land (which you cannot depreciate), you can take 3.6% (or 1/27.5) of the asset as a tax deduction each year...that will either be a deduction against passive income or ordinary income depending on if you qualify as a "real estate professional" which we are not going to get into today.

The current tax law, that is currently set to expire in 2023, allows for something called BONUS DEPRECIATION, which allows for higher depreciation rates from assigning values to contents of the building, with the help of a CPA.

While many Buyers see the long term value in our local multi-family market, they are a little scared that they will have very “skinny” returns the first 1-2 year prior to adding value as rents turn over and bumping rent. Bonus Depreciation is a resource that experienced investors are using to solve that problem!

Need it explained in a case study? We've got you covered! View the short case study example from a book called "Tax Free Wealth" by CPA Tom Wheelright by clicking here.

Tip from Tom
Tom Hall
Director of Property Management and Facilities Maintenance
Vacancy Woes?
Owners - Now is the time to minimize your operating expenses to lessen the impact of a vacancy on your bottom line. Given the current condition of the commercial real estate market, keeping those operating expenses low is going to be more important than ever. We'd be happy to conduct a complimentary audit of your operating expenses to ensure property expenses are as low as possible. Call us or email Tom Hall to request.
What's the Plan Noco?
Your elite source inside the Fort Collins Planning and Zoning Board
Development continues throughout Fort Collins during the national Covid-19 pandemic. City staff, boards, and Council are backed up due to cancelled, and not virtual meetings. With our community’s optimism, grounded by local economic diversity we continue to see projects come to Conceptual Review or continue through Development Review. Below are some notable projects in Fort Collins.

Conceptual and Preliminary Design Reviews

Neighborhood Meetings
  • Spark Multi-Family Development at site of the former Elks Lodge located at 140 E Oak St. A 6-story mixed use building for office/commercial/parking, and affordable housing.

Other Applications Under Review including PDPs, ODPs, and Amendments
  • Starbucks on S College Ave - upgrade former Burger King space at 4218 S College Ave for new Starbucks location

Planning & Zoning Board Hearings - Agenda Packet
  • APPROVED: N Timberline and E Vine: Mosaic Condos' request for approval to build 14 multifamily two-story condo buildings (112 dwelling units).
  • APPROVED; N side of Redman Dr and I-25 Frontage Rd: Mulberry Connection's request to develop two industrial buildings totaling +/- 164,200 SF - Agenda Packet

For more details please see City of Fort Collins Development Review web page HERE
Time to Catch Up
Quick Links to our Neighbors' Stories that Shaped Q2
Hot Off the Press... Resources that can help you NOW!
Larimer County Extends Current Property Tax Submits without Penalty... click here
Confused on the PPP Forgiveness Application form? Get Answers Quick .. click here.
What Gatherings/Events are and are not allowed during Safer-at-Home Order... click here.
Colorado Businesses could get Tax Relief with Gallagher Amendment Repeal... click here.
links received from City of Fort Collins

Q2 Recap
Restaurant Closures... click here.
What's next... Debt Load... click here.
Recession Projections for The State... click here.
Best Recession Proof Cities, Fort Collins Ranks #22 in Nation... click here.
Fort Collins Businesses that are Making a Difference... click here.
Welcome to the Community!
Jake Arnold and Nick Norton of Waypoint Real Estate represented both landlord and tenant in the lease transaction of the 4,113 SF restaurant space at 130 W Laurel Street, Fort Collins. We are excited to welcome Back Door Grill, originally from Steamboat Springs, CO to Northern Colorado!
Waypoint Real Estate represented the landlord in the lease of 6,500 SF of restaurant space at The Exchange in Old Town. Penrose Taphouse and Eatery is now open at 216 N. College Avenue Suite 120. Penrose is a new concept brought to life by the founders of DC Oakes. Welcome to The Exchange, Penrose!
Organizations we love
RamStrength supports local cancer survivors by providing financial assistance for basic needs, scholarships, programs and services.
What's Your Real Estate Worth? We'd be Happy to Provide a Complimentary CMA!
Waypoint Real Estate | Email Us | 970.632.5050 | Website