Downtown Apartment Market is Over Built

In downtown Denver builders are building too many new Class A apartments, thus rent concessions are increasing or actual rent amounts are decreasing in submarkets like Cherry Creek and the Golden Triangle. Charlie Williams, a Senior VP at KeyBank said, it may take 18 months instead of 14 months to fill a building, but it eventually gets filled. Further, he said, “We are a market that is diversified finally, Denver isn’t a boom and bust town anymore.”

Dan Levin, a regional development partner with Pensam Development, said today’s projects are financed much more conservatively today with at least 20-35% down payments instead of as little as 5% down last decade