WESTERN SNAPSHOT, DECEMBER 2006

Northern Colorado Retail Market

The hot retail area in Northern Colorado for the last 2 years has been the intersection of Interstate 25 and Highway 34 in Loveland, Colorado. With its Centerra development, McWhinney Enterprises has defied traditional logic where retail follows rooftops. The intersection lacks the normal 3-mile-radius demographics retailers seek, yet McWhinney has succeeded in building more than 1.2 million square feet of retail space at Centerra. With the 2534 development breaking ground next spring at the southeast corner of I-25 and Highway 34, even more retail — 500,000 square feet — will be built at this intersection.

In addition, there are numerous retail projects planned 1 mile north at the Crossroads Blvd. and I-25 intersection in Loveland. The new, developing retail submarket in Loveland will be located on Highway 287 on the north side of Loveland where the new Wal-Mart Supercenter is ready to break ground. The area also lacks the traditional 3-mile-radius demographics, but will pull shoppers from south Fort Collins if the smaller Wal-Mart at Harmony Road and College Avenue closes.

In Fort Collins, the next major retail project will take place at the northwest corner of Harmony and Zeigler roads. Bayer Properties, which originally planned a lifestyle center at this site, has reconsidered and is now planning a big box development. Lowe’s Home Improvement Warehouse and SuperTarget are to be the anchor tenants. Another big box development is being planned on the east side of I-25 and Harmony Road by Goldberg Properties — once again ignoring the 3-mile-radius demographics. Due to the lack of good remaining retail sites in Fort Collins, the future will lie with infill developments and the redevelopment of existing properties, including Foothills Mall. In downtown Fort Collins, numerous loft projects with first-floor retail space are under construction or being planned. The city of Fort Collins is pushing to turn downtown into an arts and cultural mecca with the hope that this will reverse the recent trend of eroding retail sales tax collections in the city.

In Greeley, the focus for new retail development will follow the advice of Horace Greeley — “Go West, young man.” West 10th Street, West 20th Street and West Highway 34 will be the hot retail corridors for the foreseeable future. No major shopping center projects are imminent in Greeley, but several developers are positioning their properties for the next retail growth spurt. These properties include City Center West (former HP site) and the Regency sites located at 71st Avenue and West 10th Street, the Fox Run and AIMS Community College sites located on West 20th Street, and the St. Michaels and Promontory sites on West Highway 34.

In the last 5 years, more than 3.5 million square feet of new retail space have been constructed in northern Colorado. Another 4 million square feet is in the planning stages for the next 5 years. Can northern Colorado absorb another 4 million square feet? Stay tuned for the answer!

Rhys Christensen is a principal at Realtec in Fort Collins, Colorado.

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