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Flex Space
· The flex space market in metro Denver remained overbuilt during 2002, according to a year-end report by the
Frederick Ross Company. The vacancy rate at the end of December 2002 was 21.5%, virtually the same as the
rate at the end of 2001. Net absorption of 327,946 square feet in 2002 was generally matched by completions of
new space. The vacancy rate for multi-tenant space, however, declined from 23.8% in 2001 to 21.2% at the end
of 2002, while the vacancy rate for single-tenant flex buildings rose to 22.1%. At the end of 2002 only 67,300
square feet of flex space was under construction in metro Denver. (Frederick Ross Company, 2/1/2003)
Government
· An attempt by pro-development interests to recall two slow-growth officials in Erie was rejected by voters in the
eastern Boulder County town. Mayor Barbara Connors and Town Trustee Paul Carter were targeted in the recall
effort, but both retained their seats by a margin of 55% to 45%. Connors and Carter were members of a Board of
Trustees majority elected in 2002 on a managed growth platform. (Boulder Daily Camera, 2/5/2003) (80516)
· The City and County of Denver may foreclose on some of the property owned by the Ocean Journey aquarium
near downtown Denver. The aquarium, which opened in June of 1999, filed for chapter 11 bankruptcy protection
in April of 2002. Ripley's Entertainment is currently negotiating to acquire the aquarium on Water Street near
West 23
rd
Avenue, an acquisition that would not be affected by a foreclosure on the three parcels, which contain
about five acres of land use for overflow parking. If the $5.7 million foreclosure is approved by the federal bank-
ruptcy court Denver may sell the parcels for residential or commercial development along the South Platte River.
(Denver Post, 2/23/2003) (80211)
· Adams County will break ground in several months on a $10 million expansion to its government center in Brigh-
ton. The expansion will involve construction of a three-story, 65,000 square foot office building to house the op-
erations of the county's district attorney, public trustee and probation officer. The Adams County Justice Center
is located on Bromley Lane near I-76 in southeast Brighton. (Brighton Standard-Blade, 2/22/2003) (80601)
· The City of Lafayette and the Boulder Valley School District may join forces to encourage development of 80 to
100 affordable housing units. The school district approved sale of a nine-acre parcel of land on East Emma
Street near downtown Lafayette. The city, through its housing authority, will seek grants to help finance the pro-
ject, which would contain a mixture of single-family houses, apartments and condominiums. (Lafayette News,
2/12/2003) (80026)
Industrial Space
· The vacancy rate for warehouse space in metro Denver rose slightly during 1992, according to a year-end report
by the Frederick Ross Company. The vacancy rate at the end of 2002 was 7.3%, up from 6.7% one year earlier.
While the market experienced net absorption of 1,019,738 square feet developers completed twice that much
last year. The pipeline of new warehouse space is emptying, however, with only 706,901 square feet under con-
struction at the end of 2002. (Frederick Ross Company, 2/1/2003)
· Catellus Development Corporation revealed plans for EastGate, a 294-acre industrial park in northeast Aurora.
The project will be located in the northwest quadrant of I-70 and E-470 and may ultimately contain about 3.5 mil-
lion square feet when completed over five to ten years. Depending on market conditions Catellus will start work
on the park this summer with a 400,000 square foot building. EastGate's primary access will be from Smith
Road. (Colorado Real Estate Journal, 2/5/2003) (80019)
· Relera, Inc. bought a 78,160 square foot industrial building in northern Douglas County for $6,720,000, or
February 2003
The Real Estate Perspective
James Real Estate Services, Inc.
Past Month's Real Estate Perspective Entries
(Continued)
