Commercial Real Estate Newsletter
August 2025
Welcome to my newsletter. Every three months, I publish a review of commercial real estate and the current state of the market. Below you will find the following: Featured Article Provides you with useful information to enhance your knowledge about getting the most out of your commercial real estate. The Market Review Offers a narrative on the current market conditions, terms, and statistics. The News Furnishes examples of marketplace transactions with pictures of the buildings and their terms.
If you have any questions, please call me at (303) 449 – 2131 ext. 149 or email me at jason@coloradogroup.com.
It doesn’t take the artistic prowess of painting the Mona Lisa or the literary genius to craft a John Grisham mystery to excel in commercial real estate. Brokers, landlords, and sellers who creatively structure transactions or enhance properties are finding success in today’s competitive market. Creativity manifests in several ways, and understanding these strategies is key to thriving in the current environment.
Reinventing Spaces to Attract Tenants
The abundance of vacant commercial space has pushed landlords to rethink and revamp their properties. Buildings that stand out offer more than just square footage; they deliver experiences through amenities. For instance, converting mundane lobbies into inviting spaces with co-working hubs or lounge areas, can transform a property’s image. Adding full-service common kitchens, high-tech conference rooms, fitness centers, and even onsite coffee shops demonstrates how landlords strive to create a unique selling point.
Energy efficiency has become another crucial factor as tenants seek to lower their occupancy costs. Beyond standard improvements like LED lighting, many landlords are investing in solar panels, energy-efficient HVAC systems, and even advanced communication technology. Installing electric vehicle charging stations is a sustainability move and a value-add that aligns with the growing demand for environmentally conscious choices. Properties equipped with these features appeal to both tenants and buyers, offering long-term savings and convenience.
Flexibility in Deals and Structures
On the financial side, landlords and sellers are getting creative with deal structures to secure leases and sales. Seller-carry financing, for example, has become increasingly popular, offering buyers alternative avenues to secure properties with better terms. These arrangements, which were less common a few years ago, are reviving stalled transactions in today’s economic landscape.
Landlords are also exploring innovative rent schedules. One recent deal involved a 6,000-square-foot office lease where the tenant was charged for 4,000 square feet in year one, 5,000 square feet in year two, and 6,000 square feet for the balance of the lease term. This staggered approach made it easier for the tenant to commit to a larger space while minimizing upfront costs, ultimately benefiting both parties.
Another successful tactic is adapting office layouts to meet post-pandemic needs. Spaces now include flexible workstations, high-speed internet connectivity, and improved air filtration systems. These upgrades cater to hybrid work models, emphasizing collaboration and comfort while maintaining the capability for remote operations. Spaces that fail to keep up with these demands, even with below-market rents, are struggling to lease.
Adapting to Smaller Spaces and Changing Needs
The demand for smaller, more efficient spaces has led landlords to divide larger properties into multiple units. While reconfiguring a 6,000-square-foot property into spaces for four tenants may involve compliance with code requirements, new or updated access points, and additional costs, these investments can pay off quickly. Tenants seeking smaller footprints are less inclined to compromise, so offering move-in-ready spaces tailored to their needs makes all the difference.
Medical office spaces are also faring well, particularly clinics that cater to outpatient or specialized services. These require unique designs, such as upgraded plumbing, improved ventilation, and patient-friendly layouts, but the payoff is reliable long-term tenants in a stable sector.
Boulder Real Estate Snapshot
- Over 150 office spaces in Boulder are available in the 2,000—to 4,000-square-foot range, contributing to a vacancy rate exceeding 20%.
- Last year, in Boulder there were 48 office, industrial, and retail properties sold, totaling nearly $80 million.
- There are currently 12 listed properties for sale in Bouder county with an asking price in excess of $7,000,000.
*Source: CoStar
By adapting to trends, investing in updates, and offering flexible, innovative solutions, brokers, landlords, and sellers continue overcoming market challenges and closing deals. Whether it’s energy-efficient upgrades, smaller units, or creative financial terms, success lies in thinking outside the box.
by Jason Kruse on August 18, 2025
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News: Recent Market Leases and Sales
| Address | Tenant | Square Feet |
| 5755 Central Avenue | A2LA | 6,810 |
| 4909 Nautilus Court | Pisces Molecular | 4,587 |
| 2503 Walnut | OptumCare Care | 1,694 |
| 1240 Ken Pratt Blvd | Anyone’s Walk | 1,750 |
| 5540 Central Ave | Markel Homes | 3,091 |
| City Lafayette. Date Sold 2008 Year of Construction May 27, 2025 | Square Feet 28,800 Price $5,157,000 Price S/F $179 |
| City. Boulder. Date Sold5/1/2025 Year of Construction1968 | Square Feet 2,660 Price $1,480,000 Price S/F $536 |
| City Boulder Date Sold 2/24/2025 Year of Construction 1985 | Square Feet 20,779 Price $2,600,000 Price S/F$125 |
| City Lafayette. Date Sold 3/31/2025 Year of Construction 1999 | Square Feet 4,909 plus 9,039 Price $3,150,000 Price S/F $226 Two building sale |
2687 North Park-4,909 sq ft and 2695 North Park with 9,039 square feet-13,948
| City Boulder Date Sold 3/27/2025 Year of Construction $283 | Square Feet 8,126 Price $2,300,000 Price S/F $283 |
About The Colorado Group, Inc.
Founded in 1980, The Colorado Group is Boulder County’s top performing commercial real estate team. The independent brokers at the Colorado Group average in excess of 20 years of experience and offer an extensive array of commercial real estate services, including land and building development, commercial sales and leasing, property management, and residential sales and relocation services. For more information, please email Jason at jason@coloradogroup.com.
For more information, or to discuss your particular interests, please contact Jason Kruse:
- Phone: (303) 339 – 5049
- Email: jason@coloradogroup.com
- LinkedIn: https://www.linkedin.com/in/jason-kruse/