JLL Research which researches the apartment community market in every major city just named Denver a Rising Market and not a Peaking Market which means several more years ahead of strong apartment demand and construction will continue to happen. Then, I remembered the DBJ had a story about JLL Research at the end of April. Here are some quotes from JLL executives in the Denver area from that story–
“Capital is still extremely hungry for Denver multifamily, and we don’t see this changing anytime soon,” Kalman said.
He added that the “underlying fundamentals” of strong net migration, job growth, favorable tax climate, infrastructure and quality of life bode well for the city in the long term.
When large organizations—insurance companies, Wall Street firms, banks—come to Denver, they have a pronounced impact, Martin said. “Once they’re here, they tend to stay,” he said.
I see 2 recently built apartment communities, one in the DTC sold for $298k per unit and a community finished last year near DU sold for $334k per unit. Why is this important?
To convert these properties into condos and sell them individually would probably mean condo prices in the $370k range at least for the DTC community and at least $415k for the DU community. Not exactly affordable housing.