DENVER (CBS4)– “For Lease” signs are popping up all over the Greater Denver area and this could be an indicator of how the economy is recovering. During the coronavirus pandemic, the economy was uncertain as many businesses closed.
“I suspect we might not be hiring that many people, but we’ve gotten used to remote working too,” said Ron Throupe, associate professor at the University of Denver’s College of Business.
The vacant commercial and office space that is now available is a sign of a sluggish economy.
“You will see that this will be empty for a while. You will get some entrepreneurs to fill those niche gaps regardless of those industries,” said Throupe.
No wonder that the year 2021 has started sluggishly due to the ongoing pandemic.
“In this particular case, it’s a brand new building that we completed last July and it’s on 17th Avenue and by the hospitals. We thought this thing was going to be rented out right away,” said Pat Henry as he spoke CBS4 showed its commercial space.
Henry owns Park 17th and other buildings around Denver.
“We’re going to have a lot of second- and third-generation retail space. If your goal is to open a restaurant, landlords are very, very interested right now,” he said.
In other words, new rental terms are now more negotiable than ever. However, some landlords are also working to keep existing tenants.
“For example, as a landlord, you change your attitude. We’ll start saying until we’re over this pandemic. Let’s find out what percentage of gross sales we think is just a flat rate, ”said Henry.
He hopes that the introduction of mass vaccination will make a difference.
“There’s only so much Amazon and computer time that you want to shop online. People still want to go out and touch and feel and meet,” he added.
The professor has already observed the recovery once, it may look very different.
“This will be a developing story as the government or state gets involved at different levels of how many companies survive and how many people they can hire,” Throupe said.