Denver

Hi

 We wanted to share a quick yet insightful update on the Denver market. We’ve also prepared a detailed video for a deeper dive into these trends, which you can find below.

Key Insights:

Denver's population grew by 3.4% from 2018 to 2023, outpacing the US average of 1.86%. Despite this, the current occupancy rate is 92.7%, below the 10-year average of 95.3%, due to a high volume of speculative buildings. Pre-2021 buildings average a 95% occupancy rate, showing a time lag in leasing new spaces.

In the last five years, Denver added 34 million square feet of new space, with 7 million under construction. Of this, 5.5 million square feet are speculative, potentially increasing vacancy rates through 2024.

Despite challenges, Denver remains strong for income and rent growth, driven by new high-quality inventory. The city has a diverse economy with significant contributions from energy, tech, healthcare, and financial services, reflected in a robust median household income growth of 27.2%, above the national average of 24%.

Denver’s industrial sector thrives, especially around the airport, driving new development. Employment trends show economic resilience with job growth in manufacturing, transportation, and warehousing.

Conclusion

Denver presents a mix of short-term challenges and long-term opportunities. Its rapid growth and diverse economy make it a compelling investment market.

Thank you for reading this far. I invite you to share your thoughts and questions. Your feedback is invaluable as we navigate these market dynamics together.