Originally Published in Colorado Real Estate Journal
Since the end of the Great Recession (2008-2009) and the start of the great expansion (second half 2009), anyone fortunate enough to count themselves a commercial real estate professional in Colorado has benefited. Record deal volume year after year, lower cap rates year after year, record prices per square foot deal after deal, it has all appeared as if it would never end.
It has been well documented over the past couple of years that the U.S. economy was approaching a record for longest economic expansion in history. As of July, the economy has officially entered its 121st month of economic expansion, the longest run since economists started tracking data in 1854. This expansion breaks the record set from March 1991 through March 2001. Gross domestic product has grown cumulatively over this expansion by 25%, weaker than historical expansions – there have been four other expansions since the end of World Ware II that have seen stronger cumulative GDP growth. Many experts point to the housing crisis hangover as the main culprit for what some may call a soft expansion over the past 10 years. What does all this mean for retail real estate in Colorado?
