Analysis of Performance
Vacancy rates had minimal shifts in Q3 with industrial and retail seeing slight increases and office seeing a decrease.
Industrial:
- Rates saw a small uptick in Q3 but overall stayed steady.
- "While overall sales volume in Q3 saw a 12.08% increase from the prior quarter, volume was still down 44.25% compared to the first quarter of the year and down 12.98% compared to the average four quarters prior. The current volume is close to the numbers experienced in the years before COVID-19, signaling a sign of normalcy in the market from the bull run as of late. With that being said, 2024 sales volume is expected to surpass the 2023 total, bringing a sign of optimism in the market that will only continue to grow after the election passes and interest rates continue to drop." - Matthews Real Estate Investment Services Q3 2024 Northern Colorado Industrial Report.
Office:
- Vacancies decreased for the first time since Q3 2023.
- According to the Realtec Office Report for Larimer and Weld counties Q3 2024, rental prices have decreased which may contribute to lease rates going up and vacancies going down.
Retail:
- Fort Collins Retail vacancy continues to trend upwards and may see continued increases with the closures and new building of several large stores.
- Nationally, the vacancy rate is 4.1% because of strong demand for retail space and limited supply.
Metric Definition
Percentage of vacant, leasable commercial space within the city. This is divided into three categories: Industrial, Office, and Retail. The category with the worst vacancy rate is displayed and that is the value compared to our target.
Why Is This Important?
Commercial property use provides a measure of economic activity and economic capacity. As the vacancy rate drops additional commercial space may be necessary to capture economic activity.
City Organization Impact on Performance
Medium – The activities of the Economic Health Office directly relate to users of commercial space, but actual leasing activity is also influenced by other outside factors.
Benchmark Information
This metric contains no benchmark data because the purpose of this metric is to track economic trends within Fort Collins over time. The internal focus of this metric limits the value of benchmarks; historical comparisons to the City's past performance are more meaningful for this metric.