Commercial Real Estate Report - Denver, CO [Apartment]

Property Type

Strong demand driven by resurgent job and population growth in combination with modest construction has greatly tightened Denver apartment market. By the end of 2012 the vacancy rate had fallen by 20 basis points for the period, at a loss of 70 for the year. asking and effective averages for the fourth quarter were up 0.8% each for the period and were up 3.6% and 4.3% for the year. (4/8/13)

Boundaries

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Recent Sales New Construction Highlight Submarkets

Latest Quarterly Reports (Q1 2013)

Denver, CO - Entire Metro
Submarkets
Aurora-Central-SW -80 bps
Denver-South -60 bps
Aurora-Central-SE -60 bps
Littleton -60 bps
Denver-Northeast -60 bps
N Glenn/Thornton -40 bps
Aurora-South -40 bps
Golden/Wheat Ridge -40 bps
Lakewood-North -40 bps
Denver-Southeast -30 bps
Arapahoe Cnty -20 bps
Denver-Central -10 bps
Lakewood-South -10 bps
Aurora-North -10 bps
Westminster 0 bps
Denver-Far SE 10 bps
Englewood/Sheridan 30 bps
Douglas County 60 bps
Denver-North 70 bps
Arvada/Broomfield 120 bps
Denver-Downtown 570 bps

Recent Sales

Cap Rate Trend

Sales Trend

Q1
2013
Q4
2012
Q3
2012
Q2
2012
Mean 5.0% 5.4% 5.5% 5.2%
Median 5.1% 5.4% 5.2% 5.5%
12 Month Rolling 5.5% 5.6% 5.6% 5.8%

Commercial Real Estate News

Recent Rent Observations

Location ID Class Rent
Aurora-Central-SE A9187 BC $795
Aurora-Central-SW 30766 BC $1,047
Aurora-North 30578 BC $568
Aurora-North A9193 BC $662
N Glenn/Thornton 58104 A $970
Aurora-South 13418 A $0
Denver-Far SE 30801 BC $883
N Glenn/Thornton 70447 BC $1,059
Denver-Southeast 49906 A $1,476
Denver-Southeast 99435 BC $725

Change From Previous Quarter

Market Rent Vac Inv
Denver 0.3% -10 bps 0.1%
West Region 0.2% -20 bps 0.0%
United States 0.1% -10 bps 0.1%

Metro vs. Region 0.1% 10 bps 0.0%
Metro vs. US 0.2% 0 bps 0.0%

Latest New Construction Updates

National Apartment Real Estate Trends

Vacancy Trends
Supply and Demand
Inventory Change
Inventory Change

Metropolitan Apartment Rankings (Q1 2013)

Based on 275 U.S. Markets
Value:
107. Seattle, WA 3.8%
108. Waco, TX 3.8%
109. Yuba, CA 3.8%
110. Chattanooga, TN 3.9%
111. Cincinnati, OH 3.9%
112. Denver, CO 3.9%
113. Albuquerque, NM 4.0%
114. Austin, TX 4.0%
115. Green Bay, WI 4.0%
116. Houma, LA 4.0%
117. Suburban Maryland, MD 4.0%

Avg Annual Growth Rate (2013 - 2017)

Market Rent Vac Inv
Denver 1.3% 455 bps 1.3%
West Region 0.3% 419 bps 0.7%
United States 0.9% 485 bps 1.0%

Metro vs. Region 1.0% 36 bps 0.5%
Metro vs. US 0.4% -30 bps 0.3%