Three Reasons to Buy a Strip Center
In a growth market like Denver, retail’s a good bet and daily-needs strip centers lead the retail pack, JS Western Retail Investments' Scott Tiano tells us. The SoCal investor recently acquired its first in the market: the Greenbriar Plaza Shopping Center, a fully occupied 114k SF property at 7041 to 7181 Pecos St. Scott says three factors make this kind of property in metro Denver a good investment.
1) Residential growth. In the area immediately surrounding Greenbriar, Brookfield is developing over 1,500 residences, which are in various stages of development. Market-wide, according to the Leeds School of Business’ outlook for Denver, residential construction will grow by nearly $900M in 2015, with 32,000 housing permits issued for the year. As the area grows, retail will be a direct beneficiary, and the quality of the tenants will continue to improve.
2) Raw Demographics. Colorado is the fourth-fastest-growing state in the nation in percentage terms, and it will continue to attract people from out of state, netting population growth of 1.7% next year. Unemployment will edge down to 4.6% in 2015, with 61,300 jobs expected to be added for the year, and every business sector benefiting. Denver (along with Portland, OR) is one of the two top cities in the US for in-migration of young adults 22 to 27.
3) Intangibles. According to the United Health Foundation, Colorado is the eighth healthiest state in the nation. Scott says he has seen a number of friends leave LA for Denver since the recession to enjoy job opportunities, affordability and healthy living. “On my many visits to Denver, I sense a vibrancy to the city—but not the frenetic energy of New York or the ‘Hollywood’ culture of Los Angeles,” he says. People in Denver take their health seriously, and with good health comes thriving economies.