DENVER, CO – April 13, 2015 - Sherpa Commercial Real Estate, Inc. is pleased to announce a recent retail lease transaction in Denver, CO. Sherpa Commercial represented Glamour Bar in the lease of retail space at the Beauvallon in Denver to open a blow dry salon.

“The Glamour Bar is one of the pioneers with the Blow Dry Bar concept in Denver. The strong Capital Hill, Golden Triangle and downtown retail demographics were critical in our selection of this location. By offering a superior level of customer service and a wide range of salon type services in addition to wash and blow dry services, Glamour Bar will be the one stop boutique for a special occasion or a night on the town”, said Brady Welsh of Sherpa Commercial. 

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DENVER, CO – March 31, 2015 - Sherpa Commercial Real Estate, Inc. is pleased to announce a recent industrial lease transaction in Denver, CO. Sherpa Commercial represented Fleetwash (www.fleetwash.com) in the lease of 5,885 SF of warehouse space in the Interstate Business Center at 7003 E. 47th Ave. from First Industrial.

“It was a challenge to identify and secure functional warehouse space the fit the needs for Fleetwash with a vacancy rate near 4% in the Airport/Montbello submarket. By working closely with JLL and First Industrial, we were able to structure a lease on a space in advance of the existing tenants lease expiring”, said Brady Welsh of Sherpa Commercial. 

About Sherpa Commercial
Sherpa Commercial Real Estate, Inc. assists private capital investors, industrial and office tenants & owner-users, and institutional owners to purchase or lease commercial properties. Headquartered in Denver, CO, Sherpa Commercial is a trusted provider of commercial real estate services to local and national owners and users of office and industrial, office and retail space. Brokerage + Development + Consulting.

About Fleetwash Inc.
FLEETWASH started its washing operation in 1973. The need for a mobile service was evident in the quickly expanding transportation and distribution industry in the greater New York City area. Many spawning companies had growing truck fleets that all needed to be cleaned, and the original mobile truck washing idea took off and grew rapidly. Today Fleetwash is the largest, national mobile truck washing & facility service company.

One of the hottest topics in Colorado is marijuana and the impact that the legalization's had on the local economy and the commercial real estate industry. In short, it has been a complete game-changer for both the retail and industrial real estate markets especially in Denver. The pot industry is definitely to thank for an industrial vacancy rate hovering around 4% and both lease rates and sale prices on the rise.

Marijuana grow facilities are prolific in industrial real estate areas in Denver. Not only are they easy to smell, they are several tell-tale signs of the nondescript grow facility - loading doors are cinder blocked shut for security, extensive security cameras and fencing, evidence of recent power upgrades with large electrical service panels, and typically only a few vehicles parked in front.

The legalization of marijuana in Colorado was a windfall for the Denver commercial real estate industry during one of the worst economic recessions. Older obsolete industrial facilities and worn down retail locations were ideal properties for the marijuana industry to absorb! Now that the Denver industrial vacancy rate is hovering around 4%, we are even starting to see new construction of grow facilities. Below is an example of greenhouse that were just constructed near downtown Denver. With utilities being by far the largest operational expense for pot growers, greenhouses are in high demand!

The positive impact of the marijuana industry hasn't been limited to Denver. Pueblo County, in Southern Colorado, has embraced the industry and even allows for outdoor cultivation. Long known as a town of steel workers and farmers, Pueblo has a very able and willing workforce, cheap land prices and abundant water. Just in the last 12 months in Pueblo County, industrial sale prices have surged from $13/SF to $36/SF and the vacancy rate has plummeted from 20% to 5%.  In addition to that, 36% of all current construction in Pueblo County is related to the marijuana industry. 

Last week I attended a conference held by the Urban Land Institute that was titled "Cannabis and Real Estate: Is Colorado the New Amsterdam?". Never in my wildest dreams that I think I would attend a 5 hour conference on pot and how its impacting my industry.  The cannabis business is here to stay and it's going to be fun to see how all of this plays out and how long the Pot Rush can continue before we see a market correction. Even the marijuana industry will have cycles, it can't stay high forever... or can it? 

Please contact Sherpa Commercial Real Estate if you would like to discuss in the industry in more detail!

The Denver Commercial Real Estate Market is incredibly healthy right now! We are experiencing strong property appreciation, new construction is well underway in many parts of the city, and Denver continues to gain national attention from investors for its healthy economy and desirable workforce.

While it is nice when we fill up our gas tanks to see how low fuel prices have fallen in recent months, falling energy prices are a source of uncertainty for both the Colorado and U.S. economies. While Colorado is much more economically diversified than it's been in the past, the oil and gas sector is a critical component to our economy and close attention needs to be paid to the economic impact of prolonged low energy prices.

A strong commercial real estate market is good in so many ways, however it also creates a number of challenges. Quality office and industrial space in the Denver metro area is increasingly hard to locate, lease rates and asking sales prices are increasing, and lease incentives from landlords are dwindling. 

As a result, if your lease is expiring in the next 12 months or you are considering relocating your business, it is critical to begin the search for new space as soon as possible to ensure you have options and to maintain leverage with your current landlord if you decide to renew. 

On the flip side, now is a terrific time to be a seller of commercial real estate! The market is full of local and national investors clamoring to add Denver properties to their portfolio. Interest rates remain historically low and with rate increases on the horizon, investors are actively seeking both stable and value-add opportunities.

New construction is occurring throughout the city with many of the most significant projects underway surrounding the core of Downtown Denver including sites at the Union Station redevelopment, just north of downtown Denver in the RiNo district, and in the Highlands. There are also many developments underway in Cherry Creek North and the DTC. Many of these projects are mixed use combining office, retail and apartments. 

Construction defect laws have significantly limited developers willingness to build condominium projects which is restricting supply and further fueling the residential market for lower priced product. These laws will most likely oversupply the multi-family market with apartments earmarked for condo-conversion in the future. With a repeal in the works, that could still take 12-18 months.

A strong community is the foundation of a strong economy. To further support our community, Sherpa Commercial is initiating a new Referral Program! Sherpa will donate 5% of fees earned from qualified referrals. Refer us a client who closes a transaction by the end of the 2nd Quarter 2015 and we will make a contribution to one of the following charities: The Wounded Warrior Project, The Denver Rescue Mission, or The Special Olympics.
 
Please contact me if you would like to learn more about our referral program, Sherpa's CRE services, or how I can assist with your individual commercial real estate needs. 

Best Regards, 

Braiden J. Welsh, MSRECM 
Sherpa Commercial Real Estate, Inc. | President
303.949.6443 | Brady@creSherpa.com | www.creSherpa.com 

DENVER, CO - December 3, 2014 - Sherpa Commercial Real Estate, Inc. is pleased to announce a recent office lease transaction in Denver,  CO. Sherpa Commercial represented Cognylitics (http://cognilytics.com) in the sublease of 4,644 SF of office space in Downtown Denver at 1875 Lawrence St.

"By identifying functional office space in a very desirable location in LoDo, Cognylitics was able to take advantage of a below market rental rate with a lease term that will allow for flexibility as their business continues to grow", said Brady Welsh of Sherpa Commercial. 

1875 Lawrence St is home to the new Ardent Mills headquarters, which consumed 4-floors in the building earlier in the year. DPC Development Co. acquired 1875 Lawrence from Behringer Harvard Inc. in May of 2014 for $46.7 million. At the time of sale the property was only 49% occupied. DPC has been able to lease it up to almost 90% occupied in the last two quarters of 2014.

About Sherpa Commercial
Sherpa Commercial Real Estate, Inc. assists private capital investors, industrial and office tenants & owner-users, and institutional owners to purchase or lease commercial properties. Headquartered in Denver, CO, Sherpa Commercial is a trusted provider of commercial real estate services to local and national owners and users of office and industrial, office and retail space. Brokerage + Development + Consulting.

About Cognilytics, Inc.
Cognilytics is a global provider of decision sciences and advanced analytics solutions. We provide descriptive to predictive analytics services enabling our clients to analyze, visualize, and monetize data as a strategic asset. Utilizing cutting edge BI tools and advanced statistics and machine learning techniques, we deliver insights for converting Big Data into a monetizeable asset. Cognilytics' Decision Analyzer® provides a platform for the execution and management of advanced predictive models on high performance architectures (including Hadoop, HANA, and SGI UV).

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FOR IMMEDIATE RELEASE:

Wave Form Systems Leases Industrial Space in Aurora, CO

Denver, CO - September 19, 2014: Sherpa Commercial Real Estate, Inc. is pleased to announce a recent industrial lease transaction in Denver,  CO. Sherpa Commercial represented WaveForm Systems (www.waveformsys.com) in the lease of office and warehouse space for their entrance into the Denver market. 

Headquartered in Beaverton, Ore., Wave Form Systems provides mobile medical technology services. Through a thoughtful site selection process, Brady Welsh of Sherpa Commercial, identified an optimal facility in close proximity to the Anschutz Medical Campus in Aurora, CO. 

"The ability to securely store, test and maintain their laser technologies and surgical equipment while remaining in close proximity to key customers was essential for Wave Form", according to Welsh. "We were able to identify and secure a facility that met those needs and allows for expansion opportunities as they grow in the Denver market."

About Sherpa Commercial: Located in Denver, Colorado, Sherpa Commercial Real Estate, Inc. assists private capital investors, industrial and office tenants & owner-users, and institutional owners to purchase or lease commercial properties. www.creSherpa.com

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I am currently representing a technology company looking to expand their current offices into a more desirable location in downtown Denver. Because they are a start-up that's in high growth mode, they have a close eye on their burn rate and a shorter term lease is actually in their favor allowing for flexibility as the company evolves. As a result we are taking a hard look at the available sublease office space in the downtown Denver market.

I thought this would be a good opportunity to share some of my tips and thoughts on how to best negotiate a sublease and to highlight several areas to be careful with.

Why Sublease?

• Can be an opportunity to secure below market lease rates.
• The space is often furnished and wired for data and telecom.
• New business or new to a market? A sublease can be a great way to test the waters.
• Expecting growth and don't want to commit to too much space?
  

Key Terms

• Mater Landlord - The Landlord on the original lease or "Master Lease".
• Sublandlord - The Tenant that is looking to sublease out their office or industrial space.
• Subtenant - The Tenant who is assumes the lease obligations of the Sublandlord.
• Master Lease - The original lease - all terms and conditions of the sublease will be passed along to the Subtenant.
• Sublease Agreement - Outlines the agreement between the Sublandlord and Subtenant.

Sublease Strategies

• Can be an opportunity to secure lower cost space initially and simultaniously strike a direct lease for a longer term after the sublease expiration.
• The Landlord may consider a lease buyout with the existing Tenant and will strike a new direct lease with you. This typically occurs if the new tenant is stronger financially and more "credit worthy".

Common Pitfalls to Watch Out For

• Review the Master Lease carefully, the Subtenant is assumes all liability of that Lease.
• What is the extent of your required Tenant Improvements? Carefully balance that with the remaining sublease term.
• Options to Extend typically are not granted to Subtenant
• Who maintains ownership of and is responsible for the removal of any office furniture
• What is the age and condition of mechanical equipment servicing the space that the Tenant may be responsible for?
• Who is responsible for restoration of space to the original condition at the end of the lease term. Review the Master Lease carefully.

Obviously this is a very general overview of several of the terms and strategies of a commercial sublease. Please contact Sherpa Commercial real Estate with specific questions or consult you own legal or real estate adviser.

Caveat - I am not an attorney and this is not to be construed as Legal Advise. Always seek legal advice for your individual situation and transaction.

The U.S. Industrial Market has recovered remarkably since the last recession especially in the coastal markets that are historically constrained for well-located Class A industrial product. As a result, industrial users have regained confidence in the U.S. economy and have begun to quickly expand their operations.

In many top-tier U.S. markets, absorption rates are on the rise, vacancy rates are compressing and capitalization rates are nearing pre-recession levels. A key driver of this absorption is the continued influence that e-commerce is having on the national and global Business-to-Consumer ("B2C") marketplace. Global online retail sales grew by 14.8% per year from 2007 to 2012 with an estimated total of $1.2 trillion in 2013. Retailers and third party logistics companies are desperatly seeking to capitilize on this trend by securing strategically located distribution facilities in high-density population centers in key markets.

In many cases retailers are adjusting their traditional brick-and-morter store strategies and focusing on online channels to improve delivery times, develop efficient return and exchange procedures and increase market penetration. Success in the retail industry rests on inventory management and quick delivery times, as a result demand for well equipped and strategically located facilities is skyrocketing.

A growing trend towards three key property types is emerging across the U.S. and internationally:
- Mega e-fulfillment centers;
- Parcel hubs and delivery centers;
- Urban Logistics Centers

Please contact Sherpa Commercial Real Estate if you would like to discuss these emerging CRE trends, if you are a retailer in need of distribution facilities or traditional retail space, or are an investor looking to capitalize on the anticipated strong demand for well-located distribution facilities.

www.creSherpa.com | 303.949,6443

April Showers Bring May... TORNADOS! As we've seen over the past few days, tornado warnings can be a common occurrence in the Denver area in the spring. Just 6 years ago we had the largest tornado in Colorado history in the Windsor area in Northern Colorado.

A tornado warning is an alert by the National Weather Service confirming a tornado sighting and location. The Weather Service will announce the approximate time of detection and direction of movement. Wind will be 75 M.P.H. or greater.

DO:

• Pull blinds or drapes closed, if time allows.
  
• Get away from the perimeter of the building and exterior glass.
  
• Leave your exterior office and close the door.
  
• If you have a portable radio or flashlight, take it with you.
  
• Go to a core location (central corridor, elevator lobby, enclosed stairwell, restroom).
  
• Protect your head and eyes, lie flat, and make as small a target as possible. 

DO NOT: 

• Use the elevators. 
  
• Go to the first floor lobby or outside the building.
  
• Touch any exposed wiring after the tornado passes.

IF YOU ARE IN TRANSIT IN THE BUILDING: 

• Go to a stairwell for shelter.
  
• Do not go to the first floor lobby or outside the building.
  
• IF YOU ARE CAUGHT IN AN OUTSIDE PERIMETER OFFICE seek protection under a desk. 
  
  

I am not a tornado expert, so please use your own judgment. :0)