Wednesday 22 May, 2013
The Emerging Trends in Real Estate report for 2013 listed Denver as one of the ‘real estate markets to watch’ in the coming years. The study, which is put together by financial firm Pricewaterhouse Coopers LLP and the Urban Land Institute, ranked Denver at number 14 among all major real estate markets. For six years in a row, the report has named Denver as a top tier city.
Why is Denver such an excellent real estate market? There are several reasons.
A Great Deal of Variety
One reason is that there’s so much to choose from. Businesses that want to call Denver home can buy space in a downtown high rise or a suburban shopping mall. There are large industrial parks with easy highway access and business-ready facilities, or Victorian houses cut up into apartments in residential neighborhoods. With so much selection, you can choose the exact commercial space your company needs. You also have a great deal of variety in terms of city areas and neighborhoods.
The Price Is Right
Although it has a thriving business scene, Denver’s commercial real estate rates are relatively low. It’s inexpensive to rent commercial space. Even in the highest demand commercial area, downtown Denver’s LoDo (Lower Downtown) area, the average price is slightly less than $25 per square foot (at the time of writing). Compare this to any major city on either coast, and it’s quite low. This is one reason why so many firms based on the east or west coast are moving to the Colorado Front Range.
A Speedy Recovery
Right now it’s a good time to buy commercial real estate in Denver because the city, along with the entire state of Colorado, is pulling itself out of the recession faster than most other parts of the country. As Denver’s economy recovers, the commercial market reflects this. During recessions or flush times, Denver’s economy is relatively stable. Vacancies are gradually filled, rental rates are stable, and new projects are developed slowly and steadily. Commercial real estate prices reflect this balance.
Also because of its stability, Denver’s residential and commercial real estate markets were not as hard hit by the subprime crisis as other parts of the country. It’s a relatively safe real estate market.
Finally, all economic predictors forecast that Denver’s commercial real estate market will only grow in the near future. People have high expectations of Denver and city planners are determined to turn it into the business hub of the American West. The city of Denver and state of Colorado governments are staunchly pro-business and always have been. They’ve made it their cause to make the city grow and prosper.