July 2011

by John Rebchook

Three metropolitan areas outside of Denver have seen vacancy rates drop by more than 40 percent in the first quarter compared with the first quarter of 2010, according to a state report released today.

Demand for statewide rental housing is not only driving down vacancy rates, but also is increasing rental rates, shows the report by the Colorado Division of Housing.

The five metropolitan areas tracked in the survey all showed vacancy rate declines. The largest drop in the vacancy rate was found in Grand Junction where, year-over-year, the rate fell 45 percent from 11.6 percent to 6.3 percent. Vacancy rates in Greeley and the Pueblo area, respectively, fell by 44 percent and 41 percent. Vacancy rates in Greeley and Colorado Springs are both now at nine-year lows.

The metro Denver vacancy rate, measured earlier this month in a separate survey, also fell year-over-year from 6.5 percent to 5.5 percent.

Although Grand Junction showed the biggest percentage drop, it had the second-highest vacancy rate.

Vacancy rates in the other four areas were:

  • Colorado Springs, 5.8 percent.
  • Fort Collins/Loveland, 4.0 percent.
  • Greeley, 3.8 percent.
  • Pueblo, 7.4 percent.

As vacancy rates fell, average rents strengthened in several markets. From the first quarter of 2010 to the first quarter of 2011, average rents increased in Colorado Springs, Fort Collins-Loveland and Pueblo. The average rent fell nearly one percent in Grand Junction, while the average rent was flat in Greeley. Rents grew the most in the Fort Collins-Loveland region where the average rent increased 7.5 percent year-over-year from $837 to $901 during the first quarter. The average rent grew 3.8 percent in the Colorado Springs area and 4.2 percent in the Pueblo area.

Average rents in all metropolitan areas measured were:

  • Colorado Springs, $737.
  • Fort Collins/Loveland, $901
  • Grand Junction, $656.
  • Greeley, $660.
  • Pueblo, $570.

The metro Denver average rent, measured in a separate survey, grew 3.8 percent year-over-year, and was $911 during the first quarter.

The statewide report is available online at the Division of Housing website: http://dola.colorado.gov/cd

Source: Insider Real Estate News

Click here to find out what's been happening in the Fort Collins, Boulder and Loveland markets over the past four years. If you'd like more detailed information feel free to give us a call anytime, we are happy to help!

by Pat Ferrier

When Armadillo Property Management hosted an open house to show a rental property, 18 people lined up on the sidewalk waiting to get a look inside.

The interest and the speed with which properties are renting are a sign of the times, said Armadillo owner Bev Perina.

"In 30 years, I have never seen properties go so fast as they are now. I show it once and it's rented," she said.

New census data released Wednesday confirmed what Perina already knows: The Larimer County rental market is exceptionally tight.

The rental vacancy rate in Larimer County in 2010 was 5.1 percent, second only to Boulder County at 4.6 percent, according to an I-News analysis of the 2010 Census vacancy rate data. The rate is only slightly better than 2000 when the vacancy rate in Larimer County stood at 4.1 percent.

Since the 2010 census, vacancy rates have further tightened, according to surveys conducted for the state.

Vacancy rates in the first three months of this year dropped to 4 percent in Fort Collins, while rents jumped 7.5 percent, the biggest increase in the state, according to the report from the Colorado Division of Housing.

"We really are back to 2000 levels with rates, etc.," Perina said.

Gone are the days of the mid-decade when landlords were practically paying to get tenants into their rentals offering everything from a free month's rent, to free cable, Wi-Fi and washers and dryers.

Fort Collins/Loveland has always been a pretty tight market, but landlords have spent the last year to 18 months "burning off concessions," said Brian Mannlein, broker/associate with Realtec's Monroe office.

"Now they're offering little to no concessions at all and construction has been nil. That's been an advantage for landlords."

Multifamily construction has heated up in Loveland, with two large apartment projects built by McWhinney. Between the Greens at Van de Water and Lake Vista, McWhinney will add 555 apartments to the city.

Fort Collins has not seen anything close to Loveland‘s apartment activity but has several projects in the works. Student housing projects Campus Crest and Capstone would add nearly 1,300 bedrooms. Provincetown Apartments in south Fort Collins will add 160 units and Presidio, off Harmony Road, is planned for 240 units. Both would ease the squeeze.

“There are a lot of projects being talked about and being put in front of the city but how many will become reality only time will tell,” Mannlein said.

Thus far, the city of Fort Collins has issued building permits for 91 multifamily units, most in small buildings rather than large apartment complexes, said Steve Laposa, director of the Everitt Real Estate Center at Colorado State University.

Creating more supply will depend on whether developers can get construction loans and land permitted and title for new building, he said.

Financing remains tough, Mannlein added, but capital markets have loosened as land values drop. “Land is becoming valued at prices that justify going vertical with market rents.”

Mannlein, who specializes in brokerage and advisory services for apartment owners in Northern Colorado, expects vacancy rates to remain high for the next couple of years.

Existing apartment owners/operators are looking at 5 percent to 7 percent rent increases this year.

Perina said her rents have gone up as vacancy rates hit 10-year lows. 
“It’s really tough for people to get mortgages right now,” said Perina, who teaches a property management class through the Colorado Real Estate Commission.

“Unfortunately, we have seen people with short sales and foreclosures filling the rental pool as well.”

While the tight market and higher prices are tough on renters, it’s been good for property owners and managers.

“I’ve never seen the market this crazy, but we went through five really tough years seven years ago in the mid-2000s,” Perina said. “It was really, really tough. People were able to buy houses because mortgage rates were so low. … This has been good to get us back on our feet and it’s getting better and better.”

Source: The Coloradoan

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by NCBR Staff

Loveland City Council agreed to purchase the Agilent Technologies Inc. property at its meeting May 10, a big step toward the city's bid for the Aerospace Clean Energy Manufacturing and Innovation Center.

The vote appropriated $5.8 million to fund the purchase price of the property, and came after a three-hour closed-door meeting between the councilors and lawyers.

Purchase of the property at 900 S. Taft Ave. in Loveland, will close on June 23.

 

Mayor Cecil Gutierrez stated the importance of due diligence on the part of the council to make sure they covered every detail of the complex issue.

The funds for the purchase will come from five different sources, but the largest contributor will be the city's raw water fund, which will make a $4.5 million loan, to be repaid when the city sells the property to developers of the ACE project.

Loveland city officials hope to finalize the deal between the Colorado Association for Manufacturing and Technology, which will seal the deal for the development on the ACE park, by the end of June.

Bringing the ACE park to Loveland could attract as many as 100 companies to the area to work on projects in collaboration with the National Aeronautic and Space Administration, which is partnering with CAMT on the ACE project.

Source: Money Crashers

Catscorner

New Windows & Doors Boost Curb Appeal & Make You Money!

6 Great Reasons to Replace Older Doors & Windows:

1. Superior Curb Appeal: Renovating with good-looking classic or modern styles can add architectural distinction or personality.

2. More Comfortable: New technologies reduce air flow between the interior and exterior which helps to maintain a more consistent temperature inside your home.

3. Lower Maintenance: Durable designs and modern materials minimize upkeep and may be covered by manufacturer warranties for many years.

4. Safe & Secure: Some models offer multiple-point locking systems and have been designed to resist forced entry.

5. Peace & Quiet: High performance windows can stifle some traffic sounds, commercial clatter or other types of noise from outside.

6. Higher Resale Value: All of these benefits may also appeal to potential buyers, so a significant portion of the cost could be recovered when the property is sold.

The front of your home is what neighbors, guests and buyers see first. Installing a new steel entry door or roll-up garage door is a relatively quick and easy project that can have a dramatic impact on the look of your home's exterior.

Source: CostvsValue.com

6 Steps to a Greener Remodel!

By: Natural Home Staff

1) Clarify Your Goals

Why do you want to remodel? Do you want to use less energy, feel more engaged in natural cycles, improve indoor air quality, gain space for new activities or family members, or figure out how to use all of that extra space now that the kids are gone? Write it all down, whether it’s a personal desire, a family need, or a response to environmental concerns. Use colors, diagrams and pictures to help you express and organize your thoughts. Refer to these goal statements when making decisions.


2) Take in Your Surroundings

To make the best use of your energy and dollars, study your current situation before you start redesigning or picking out materials. Sit still in your living room, in your kitchen, in your bedroom and all around your house, tuning in to all of your senses. You might be surprised.

Notice where the sun shines—and doesn’t. Notice which rooms you love and which ones you avoid. Notice how your family members spend time in the house and yard. Notice where the air smells fresh and where it’s stale, which areas are warm and which are cool, which way the wind blows and how strongly. How do these things change with the time of day and year? Mark your observations on a floor plan of your house.

Study your activities, too. How and where do you like to spend your time? What would you like to do that isn’t easily supported by your current home? How do you like to entertain? What are your personal and group goals for this remodeling project? Sum up what works well in your house and yard now, and what you’d like to improve.


3) Think about Space

When we’re feeling cramped, our instinct is often to add more space. But keep in mind the more house you build, the more materials you consume and the more energy you’ll use for heating and cooling. It’s important to thoughtfully consider how much space you need and how it could be configured to best suit your needs. First, think about ways you can alter your current floor plan—by moving or opening a wall, dividing a space, adding more storage or popping out a window seat—to solve your problems. Maybe an outdoor room would meet your needs, while requiring less money and other resources than a home addition. If you are planning a major overhaul, determine exactly which spaces you need and how big they need to be. Measure rooms you like in other homes. Think about your home needs now and in the future.

4) Get an Energy Audit

Looking for a good recommendation? Try Energy Logic!

An energy audit will tell you things that aren’t apparent to the naked eye. You’ll learn where heat is sneaking in or out and how to get the most bang for your buck. Many people think they should replace their old windows—then do nothing because they can’t afford the high price tag. But an energy audit may show how to save more energy for less money by sealing leaks and improving insulation. A professional trained in building science can also advise you on achieving good ventilation while balancing air pressure and creating an air barrier that saves energy and avoids mold growth.


5) Design With Nature

Before upgrading to more energy-efficient heating and cooling systems, take advantage of the freebies from Mother Nature. Need more heat and light? Look first to the sun. Take advantage of shade and breezes for natural cooling. If your house wasn’t designed to make the most of sunshine, a window here, a skylight there, or a sunspace addition could make a big difference. In hot summers, shade your house and windows with overhangs, trellises, plantings and awnings. Use plantings, landscape walls and windows to guide cooling breezes where you’ll feel them. You may still want heating or air-conditioning equipment, but you’ll need a smaller unit, saving money and energy.

You can predict where the sun will shine at any time of day or year, allowing you to place windows and design summer shading that doesn’t block winter sun. Most window glass is now designed to reject solar heat, so look for windows with a high Solar Heat Gain Coefficient (SHGC) if you want to welcome it.


6) Get Specific

Once you’re clear about your goals for the whole project and its parts, you can begin prioritizing remodeling jobs. Take a look at the various options’ costs and payoffs (see “Price Check” on page 61), determine which tasks require a professional (see “Qualified or DIY” on page 62), then dive into the hunt for specific materials and strategies (start with “Shrewd Shopping” on page 61). Once you’ve got a good grasp on which projects you want to take on and how much each will cost, allocate your budget to cover the must-do items. As you go, always ask: How can I make the least change for the most positive effect? Sometimes the simplest moves are the most effective.

Source: Natural Home Magazine

 
Alice P's Market Update www.rogersrealty.net
www.rogersnrogers.com		 July 2011