Intelligence

Regional Summaries

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Denver, CO

Apartment
Denver apartment market vacancy reached its lowest point in the current cycle at the end of 2013, at 3.8%. The rate since then, pushed upward by rising volumes of new supply, re-crossed the 5.0% threshold during the fourth quarter of 2015 to close at 5.1%—not a high rate, to be sure, but an indicator of a significant upward trend nonetheless. At $1,155 and $1,054 per month as calculated by Reis, respective fourth quarter average asking and effective rents were up fully 6.8% each for the year. Gains of 1.3% and 1.2% are reported for the fourth quarter of 2015 alone. Gains of 0.3%, meanwhile, are indicated for both rates for January. VIEW APARTMENT LISTINGS >
Industrial
Denver’s warehouse/distribution inventory, last counted at 121.2 million square feet, is concentrated most heavily in the metro east and northeast. At 9.4%, the vacancy rate for the fourth quarter of 2015, down 10 basis points from the quarter preceding, was down just 30 for the year and was down only 40 over two years. An additional 10 points had been removed by the end of January 2016. Conditions are ripe for rent growth. At $4.82 psf and $4.60 psf, fourth quarter average asking and effective averages were up 1.9% and 2.0% for the year. Gains for the fourth quarter alone were 0.8% and 0.9%, to which January added increases of 0.2% for each. The region’s 25.6 million square feet of Flex/R&D space is concentrated most heavily in business parks in the suburban southeast and northwest. Vacancy in the Flex/R&D market has seen a somewhat steeper recent decline. The fourth quarter rate for this sector was 10.5%, Reis reports, down 30 basis points for the period and down 100 for the year. An additional 10 points had been subtracted by the end of January. Rent growth in the Flex/R&D market also grew stronger in 2014—but slowed in 2015. At $7.86 psf and $7.36 psf, mean asking and effective rates for the latest quarter represented gains of 1.7% and 1.8% for the year. Gains during the fourth quarter alone were 0.8% for both rates. January followed with respective increases of 0.1% and 0.3%. VIEW INDUSTRIAL LISTINGS >
Office
The Denver area general purpose, multi-tenant office market vacancy rate increased 40 basis points in 2015. The 17.5% year-end rate, moreover, was down 30 basis points from the third quarter rate. No change in the overall vacancy rate followed in January. At $23.65 psf and $18.27 psf, average asking and effective rates were up 2.8% and 2.9% for the year. Gains for the latest quarter alone were 0.9% for both rates. Each rate added one cent in January. VIEW OFFICE LISTINGS >
Retail
The vacancy curve for the Denver community-neighborhood shopping center market over the past couple of years has been about as flat as it could be—this despite a virtual lack of new supply. It closed the fourth quarter of 2015 at 10.9%, down 20 basis points for the period and up 20 for the year. A 10-basis-points increase followed in January 2016. At $17.75 psf and $15.52 psf, fourth quarter average asking and effective community-neighborhood shopping center lease rates were up 1.8% and 2.0% for the year. January 2016 followed with increases of 0.3% for both rates. VIEW RETAIL LISTINGS >

Source: Data provided by Reis, inc.

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