Five Types of Commercial Real Estate & Opportunities in Today’s Market
Navpoint Real Estate Group is an expert in navigating the complexities of any real estate market. Commercial real estate faces constant change and where there is change, there is opportunity. Many people mistakenly believe that the market is primarily driven by office buildings when in fact there are various types of commercial real estate, each presenting opportunities for both tenants and investors.
Office
Large high-rise office buildings in cities are often the first thing people think about when it comes to the state of the commercial real estate market. The impact of the pandemic and hybrid work is forcing a flight to quality in many city centers, though the right geographic location is proving to be critical in both urban and suburban markets. We see high demand particularly for well-located low-rise suburban office buildings. Some examples of this in the Denver metropolitan region are two office buildings that our team is currently leasing for the landlords at 1221 S. Clarkson Street in Denver and 1100 W. Littleton Boulevard in Littleton, CO. The buildings are filled with small office suites ranging in sizes up to1,200 square feet that have been rapidly leasing over the past year. This is a great time to reach out about leasing in such properties in markets across Colorado as well as for investors looking for low vacancy office building assets to purchase.
Multifamily
Multifamily properties refer to residential buildings or complexes housing multiple dwelling units on the same property. Not to get confused with being residential, these buildings are considered commercial. There are multifamily properties owned by individuals, but predominantly we see them owned by large Real Estate Investment Trusts (REITs), which are institutional entities allowing people to invest in this property sector as one does when they invest in the stock of a company. This has been a particular trend over the last 20 years. The reason for both private and institutional interest in this asset class is that multifamily properties are a great investment, as one of the most stable commercial real estate categories because people will always need a place to live. In the tight housing market of Colorado, there will always be a market for people that do not want to live in or own a single-family home. New development of single-family homes remains tight, with limited for-sale product available. The time is right for investors looking for acquisition opportunities in this sector.
Retail
Retail is the category of commercial real estate that we are surrounded by and most interact with in our day-to-day lives. Like large high-rise office buildings, we have seen a shift in demand in the type of retail of interest in this sector. The shift is away from large retail malls to smaller neighborhood centers and strip centers in well located areas with good demographics. Our team is actively engaged with multi-tenant retail investors with significant interest in purchasing neighborhood centers and strip centers. The reason for this is because of the resilience of these properties through the ups and downs of any economy. Mainly comprised of small mom and pop business’s working hard to pay their rent every month, it is their livelihood, and these properties tend to be assets with good, stable tenancy as a result. If you are a small business owner looking for space to lease, please check out a few of the strip centers we are leasing today in markets across the state: 6618-6680 Wadsworth Blvd. in Arvada, 522-586 S. Academy Blvd in Colorado Springs, 3814-3960 Maizeland Rd. in Colorado Springs, and 2727 N. Cascade Ave in Colorado Springs. It is also prime time for investors to think about acquisitions in this sector, particularly in the markets of Colorado Springs and the outlying Denver Metro area in Colorado.
Industrial
The industrial category has many different types of properties including warehouses, manufacturing, distribution centers, logistics, and flex properties, the latter of which typically combines office and warehouse spaces. One of the newest growing categories is data centers with the rise of AI. Throughout the sector the different property types are seeing strong demand and solid rent growth, with good fundamentals for investors. The limited new development across the Colorado market makes finding sites challenging for tenants, with small industrial flex condos in very high demand in the current industrial real estate market. In Castle Rock and Denver Metro area, investors and users are particularly inquiring about industrial flex condos. We have a number of industrial and flex properties listed on our website, so please reach out about those and we can find other opportunities in the market that meet your needs as well.
Land
Undeveloped land is the original base to all real estate. Open land lots are the beginning stages of commercial and residential real estate. We have clients actively looking for sites to build single tenant new lease properties and others inquiring about investment and leasing opportunities in new developments throughout the front range. With our headquarters in Castle Rock, we have been uniquely qualified to witness the rapid growth over the past 15 years of the city of Castle Rock and Douglas County overall. The City has major developments delivering in 2026-2028. We are actively inquiring about new developments on behalf of our clients, so please reach out to find out about opportunities.
For more detailed insights into leasing, owning, and investing in any of these asset classes, we are available to help. Our experienced team can assist you in expertly navigating the market to make sound financial and investment decisions now and for the future.
Read about retail in Castle Rock and the retail team here
Jackson Naylor
Phone: 303-552-4958
Jackson Naylor
Jackson, is a young and driven broker who originally interned for NavPoint in the summer of 2022. He came back to find a full-time associate brokerage position at the beginning of 2024, specializing in Multi-Tenant Retail leasing and sales. Jackson, now aims to provide NavPoint clients with a relentless work ethic and market knowledge to help accomplish client goals.
