FEATURED TOPICS
BREAKING DOWN THE FUTURE OF NNNs: PART 1: BUILDING INSURANCE
Welcome to the first installment of our deep dive into the breakdown of NNN expenses. Our goal with this series is to provide some insight into factors causing expenses to increase, with the first focus being Building Insurance. We reached out to two of our trusted colleagues in the Colorado insurance world to get a better understanding of contributing factors to insurance cost increases. The conversation below took place with Brent Friesth, Owner of Bolder Personal & Business Insurance, and Dustin Thome, Executive Vice President of The Buckner Company.
Considering the recent wildfires in California and their financial and structural impact, how are insurance providers expected to adjust commercial real estate insurance policies nationwide in terms of coverage, premiums, and risk assessment?
Brent: California wildfires, in the last few years and the recent devastating fire event will have an impact on insurance, but primarily in California. California has its own unique issues with catastrophic events but also with the legal and political environment in the state. State Farm is one company that had already discontinued writing new homeowners’ insurance in California before the LA fires. This was partially due to large claim events, but probably, to a greater extent, it was due to the legal and political environment that made it hard or impossible to make a profit. Nationally, the California wildfires have only a minor impact on insurance. It is the trend of more frequent and more severe storm events that are, and will, effect insurance rates and eligibility nationwide.
Dustin: This is a question we get a lot! There is no question the wildfires in the Palisades and surrounding areas was devastating from a financial and personal standpoint! While the real property damages look to be in the $100B range for now, insurance carriers tell me that only $30M of the claims were insured. The other $70mm were not insured either due to self insurance or consumers could not afford the insurance or for other reasons. So, while the damage was substantial, the insurance claims were not as devastating to the national insurance marketplace as expected. It’s no secret that insurance premiums and deductibles have increased substantially over the last several years. These increased premiums and deductibles have provided security and a base to withstand these large catastrophic events for now… So much so that we are seeing the property insurance market soften some as it relates to more insurance carriers entering the marketplace, which is eventually and will hopefully drive premiums down a bit over time.
BOULDER NEWS
Coach Prime inks $54M extension at CU through 2029 – Deion Sanders could be sticking around Boulder for at least a few more years after the University of Colorado head football coach inked a contract extension on March 28th. Coach Prime’s $54M deal, which now extends through 2029, boosts his 2025 salary to $10M, making Sanders one of college football’s highest-paid coaches. His salary increases each year, reaching $12M in 2029…
Sundance picks Colorado; Festival expected to have huge regional impact – The Sundance Film Festival – its leaders having decided last week to move the world-renowned event from Utah to Boulder – will make Colorado the epicenter of the movie universe for a week and half each winter for a decade beginning in 2027…
FEATURED LISTINGS
1223 Pearl St, Boulder |RETAIL | $54/RSF
2150 Pearl St, Boulder |OFFICE/RETAIL |$27/RSF
2500 30th St, Boulder |OFFICE/RETAIL | $18/RSF / $780,000
4750 Table Mesa, Boulder |OFFICE |$22/RSF
1002 Griffith St, Louisville |OFFICE/RETAIL |$592,725
The District, Lafayette |RETAIL | $20/RSF
1689 Skyway, Longmont |IND/FLEX |$15/RSF
RECENTLY CLOSED DEALS
2840 Wilderness Pl • Boulder • SALE • Industrial/Flex • $5.5M
2118-2120 13th St • Boulder• SALE • Office • $3.5M
1135 Cimarron Dr • Lafayette • SALE • Retail • $1.95M
224 Seward St • Lyons • SALE • Multi-Family • $1.7M
900 Arapahoe Ave • Boulder • SALE • Office • $1.6M
112 E. 2nd St • Nederland • SALE • Retail • $1.1M
721-723 Rees Ct • Longmont • SALE • Multi-Family • $492,450
209 Lucerne Way • Lafayette • SALE • Multi-Family • $467,500
602 E. Geneseo • Lafayette • SALE • Multi-Family • $500,000
1960 32nd St • Boulder • LEASE• Industrial/Flex • 10,143 SF
3201 Walnut St • Boulder • LEASE • Retail • 10,040 SF
1011 Walnut St • Boulder • LEASE • Office • 5,553 SF
3287 Walnut St • Boulder • LEASE• Office • 4,160 SF
3180 Sterling Cr • Boulder • LEASE• Office • 3,777 SF
1310 College St • Boulder • LEASE • Retail • 3,125 SF
1790 38th St • Boulder• LEASE • Office • 3,046 SF
3211 Walnut St • Boulder • LEASE • Retail • 1,077 SF
1947 33rd St • Boulder • LEASE • Retail • 866 SF
CRABTREETEAM NEWS
In true Crabtree Team fashion, we have all been busy over the winter and a lot has changed since our last update! First, we are excited to announce that Liz and Istvan welcomed their baby girl, Stevie, on March 17th! We are so grateful everyone is healthy and doing well.
We’d also like to introduce the newest member of our brokerage team, Austin Fields. Austin is from Charleston, South Carolina, and has a background in residential real estate. He moved to Colorado in 2023 with his wife, Emily and their son, Langston. Austin is excited to leave the resi world behind and enter the commercial side of business. We are thrilled to have Austin as a part of the team!
The Crabtree family has spent most of their winter skiing at Eldora and Winter Park, with a quick spring break to surf in San Diego. Kelly and Levi are in Gunnison enjoying lots of spring skiing at Crested Butte and running in the Valley.
