Real estate advisory firm Newmark Knight Frank said that businesses will move into more than 1 MILLION square feet of downtown Denver office space this year thru 2021. On average since 1980 businesses have moved into 322k square feet a year. So, this is more than a 300% increase. WOW!
I read another story yesterday on how VF Corp just leased an entire new office building in downtown Denver and how this will tip the market scales to favor landlords.
And know this that most commercial leases are for a minimum of 5 years and often much longer. Second, businesses don’t sign lengthy lease agreements unless they know they will be expanding soon, which means hiring more people. More people means more demand for housing.
You know how I wrote about last week that the Downtown Denver apartment market is over-built possibly now. With this news developers will need to build many more large apartment communities near downtown over the next 3+ years. So much for being over-built.