In 2017, we expect to see a continuation of a strong commercial real estate market in Aspen for leasing, primarily driven by demand from both local and national tenants.
There are currently 31 leases completed and 32 available properties to lease in Aspen as we near the end of 2016. The average price for spaces leased is $73 per square foot and available-to-lease spaces average $61 per square foot. Prices range in core office spaces from $30 to $50. Prime-plus retail space in town can be as high as $250 per square foot.
The total available vacant commercial space for lease in the Aspen core totals about 33,000 square feet. This is down from 47,000 square feet available at the end of 2015, or down 29 percent from the vacant space available in the prior year. In 2016, there was 30,000 square feet of total space leased at an average lease price of $73 per square foot.
In summary, the retail core of downtown Aspen is close to its all-time low vacancy rate. Whereas, the office market has more vacancies, but is moving in a similar direction.
The Aspen City Council is considering a moratorium on national retailors to encourage local business to be able to afford core area store-fronts. This is a bold new move and has many potential consequences, both good and bad, that need to be assessed.
The City of Aspen has also placed a moratorium on building penthouses in the downtown core. Much community discussion is needed to determine if these short-term moratoriums will become the new zoning regulations.
Commercial sales in 2016 were $47 million versus $57 million during 2015, or a 17 percent decrease. The average sale price per square foot was $1,089 versus $1,069 during 2015, or a 2 percent increase.
Please call us for a more detailed analysis of the Aspen commercial market. Whether you're looking to rent, planning to buy or sell, or own commercial property in Aspen, you are always first with us.