Ghostwriter for this article. Officially published under Brian Bray’s name in the Grand Junction Business Times on May 11, 2023.
On April 19, I had the pleasure of speaking on a panel at the Colorado Real Estate Journal Commercial Real Estate Forecast & Expo. The 45-minute Q&A was moderated by Brendan Matthias of FirstBank of the Roaring Fork Valley and included panelists John Renfrow of Renfrow Realty (Montrose), Jack Wolfe of LIV Sotheby’s International Realty (Breckenridge), and Ronald Wendler of Colorado Group Realty (Steamboat Springs).
During the panel discussion, we delved into a range of topics, including the impact of the pandemic on commercial real estate and the unique market dynamics across various regions of Colorado. As each panelist shared their insights, it became clear that the Western Slope’s experience during this challenging period stood in contrast to that of other areas.
The initial shutdown was relatively short-lived compared to metro areas and ski towns. That is not to say that the pandemic did not have a disruption to our workforce or hospitality industry – quite the contrary. However, it does not appear that it had the same devastating influence as other areas, and we were able to rebound quickly by comparison.
One of the Western Slope’s strengths in the current market is its independence from tourism and ski season, especially when compared to the markets dependent on those factors such as on the Front Range, mountain towns and larger cities. These are the areas that took longer to bounce back after the pandemic.
As we look ahead, the commercial market in Mesa County and Grand Junction is poised to continue its upward trajectory. With a resilient spirit, a diverse economy, and a touch of that Western Slope charm, this region is a shining example of how to weather challenges and come out stronger on the other side.
The commercial real estate landscape on the western slope presents a range of investment and development opportunities, particularly in the retail sector. The pandemic has had a profound impact on consumer behavior, driving demand for services that prioritize convenience and safety. As a result, we have observed a surge in the development of coffee shops and car washes in the area. Investors and developers are encouraged to capitalize on these trends to meet the evolving needs of the community and drive economic growth in the post-pandemic era.
Recreation-based industries such as RV storage facilities and ATV and boat retailers experienced record-high sales in 2020. While many cities watched as storefronts and shopping centers shuttered indefinitely, the big box retailers Dillard’s, Dick’s Sporting Goods, and Home Goods all opened their doors at Mesa Mall in 2021. Furthermore, as many families made their exodus from cities like Denver and Boulder, Grand Junction experienced an increased attraction as a new place to call home. Technology has made it realistic for employees to work remotely while simultaneously enjoying the outdoor recreation lifestyle that the Western Slope provides.
The tech industry is growing in Grand Junction, with businesses like Kaart, Aspen Technologies Group, GROWL Agency, and Cloudrise headquartered here. Regarding real estate, Grand Junction experienced record-high sales prices. Much of the commercial inventory that was on the market before and during 2020 was sold in 2021 and 2022. According to the Daily Sentinel, the City’s 2020 comprehensive plan found Grand Junction needs about 570 new residential units each year to keep up with the city’s baseline growth, and development really hasn’t kept up with that number since the Great Recession in 2008.
To meet the housing demands, the multifamily sector has been off the charts. The city processed 343 new planning clearances for multifamily units in 2021 and 661 in 2022. There are 2,000+ brand-new units slated to come online this year. Grand Junction is becoming more well-known nationally. In fact, Grand Junction recently landed on The New York Times’ “52 Places to Go in 2023!”
With a healthy retail scene, promising office market, and exciting multifamily developments, the Western Slope commercial hotspots know how to keep things prosperous. Whether you’re a business owner, investor, or just passing through, 2023 will be a good year for Grand Junction.
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