F
ORT COLLINS — Northern Colorado's commercial and residential real estate markets face similar challenges as those nationwide, but the region remains relatively resilient. Commercial transactions have declined since peaking three years ago due to higher interest rates and slower economic and demographic growth.
Population growth is crucial for commercial real estate demand, but it's slowing in the US and Colorado, driven by declining births, increasing deaths, and reduced net migration. However, Larimer and Weld counties continue to attract residents, with Weld County being one of the strongest and most stable in terms of population growth.
Weld County's affordability, abundant land and water availability, contribute to its appeal. From a national perspective, economic growth and consumer debt trends are concerning. In Northern Colorado, homes are staying on the market longer and selling for less than their original list price.
Millennials are becoming a significant force in homebuying, but affordability remains a barrier due to rising insurance premiums, water fees, and construction costs exacerbated by tariffs on imported materials. To stay competitive, sellers are offering concessions more frequently and generously.
Industrial space construction has slowed since the pandemic, while office development is at an all-time low, with owner-occupied, medical, and laboratory projects becoming increasingly prominent. The retail sector has performed well in recent years but may face challenges as consumer confidence wavers. Greeley stands out as a strong performer statewide for many retailers.
