Colorado Real Estate Journal -
The largest power center in Northern Colorado signed six new tenants in the last 12 months, ending a long, quiet spell that coincided with the national recession. The recent signing of a 2,350-square-foot sushi restaurant brought leasing at the 500,000-sf Marketplace at Centerra to 98 percent. That is not to say retail is out of the woods, but in Loveland, and particularly at Centerra, it definitely is on the rise. Sales tax collections at Centerra, which accounted for more than 20 percent of the city of Loveland’s sales tax revenue in 2011, rose 8.97 percent last year. That includes the Outlets at Loveland, which was up 13.4 percent, the Promenade Shops, which posted a 4.3 percent increase, and other retail at Centerra, including the Marketplace, which jumped 9.2 percent. The increases contributed to an overall 6.4 percent increase in city sales tax collections. In its recent market update, Realtec Commercial Real Estate Services reported Loveland’s retail vacancy rate at 4.75 percent. Prior to 2011, it had been three years since the Marketplace at Centerra signed a new tenant, according to Ron Kuehl, vice president of real estate for McWhinney, the developer of the Centerra development at Interstate 25 and U.S. Highway 34 in Loveland. Today, “We only have 8,700 square feet left in the largest power center in Northern Colorado,” he said. “We’re getting very high lease rates,” added Kuehl, citing $25 to $30 per sf triple net. Kobe Sushi is the newest tenant to join the Marketplace at Centerra. A new concept by the owner of Lulu Asian Bistro in Fort Collins, the restaurant will open by August. It will include an outdoor patio. “For us as owners of the Marketplace, what is important is it’s a new concept that adds to our tenant mix. We are at a place where we’re not just looking for another store. We’re looking for concepts that add to the synergy of the marketplace,” Kuehl said. Others among the newest tenants include Buffalo Wild Wings, Menchies Frozen Yogurt and Jimmy John’s. McWhinney has three letters of intent in negotiation for space at the Marketplace at Centerra, according to Kuehl. Target and Sportsman’s Warehouse anchor the center. “I believe the success of the Marketplace is due largely to the increased absorption of office space, as well as residential, at Centerra,” said Kuehl, adding 2011 saw the opening of the 303-unit Lake Vista apartments. The employment base at Centerra has grown to 7,500. The vacancy rate for the approximately 1 million sf of office and medical office at Centerra is 8.5 percent, said Kuehl. “The submarket is very healthy.”