Weekly 5 in the Know 6/4/24

3 Colorado
Fewer Colorado Springs Apartment Owners Offer Concessions Despite Empty Units
● CO Springs had a peak of 50% of apartments offering concessions, and this dropped to only 34%
by april
○ Still above the national average of 26%
● Most apartments offer one month free rent and some even offer two months free on a one year
lease
● However, this shouldn’t last long as vacant apartments are increasing in 2024 to 12%
○ This is the highest vacancy on record for the CO Spring market
Denver Retail Market Posts Another Solid Quarter for Leasing
● Despite limited available space on the market (as in week 5/21 update), retail leasing activity in
Denver maintains solid pace
● The first quarter reported 825,000 sqft leased, which is finally back to levels pre pandemic
● The Mile High City is becoming very experience based with some of the top retail leases being
for Denverite’s entertainment
○ This includes Malibu Jack’s indoor theme parks, indoor pickleball courts, trampoline
parks, and Colorado Battle Zone’s mobile dart arena.
Investor Acquires Apartment Complex in Near Record Deal for Colorado College Town
● Kairoi Residential purchases $160 million dollar apartment complex near Colorado University
Boulder
● The property is 319 units on pear street, and is the second-highest price ever paid for a
multifamily property in Boulder
● At about $500,000 per unit, this luxury complex is much more expensive than the average
$360,000 a unit average in the Boulder region
● The typical rent for the building is $2725, roughly $700 above the regional average.
● (this is the same firm that plans to convert the Residence Inn by Marriott into luxury apartments
in week 5/28)
○ This development is just another addition to Kairoi’s portfolio expansion throughout
Colorado.
2 National
San Diego Apartment Rents Rise for Fifth Straight Month
● San Diego Sits as the 6th most expensive rental market in the US with over 75,000 market-rate
units
● Rents have increased for five consecutive months but at a slower pace than landlords hoped, with
a 0.3% increase in May and a 0.5% increase in the second quarter.
● University Town Center saw the largest rent increase at 1.8%, despite a 0.9% decrease year over
year.
● Landlords have stepped back from concessions, with roughly 20% of communities offering some
form of free rent
● Landlords anticipate continued use of specials to attract tenants due to ongoing uncertainty in
household formation
Trader Joe’s Scouts Out Two Dozen New Stores Across US As Competition Picks Up
● Known for customers who enjoy relatively low prices and unique groceries, Trader Joes gears up
for large national expansion.
● Already having 549 stores in 42 states, they plan to add 24 more stores, 8 of which will be in
Southern California.
● The grocery sector is a highly competitive market for Trader Joe’s as it has to keep up with
discount giants such as Walmart and Target
○ However, it is holding its own as a rapidly growing smaller, organic compan