Two years ago we spotlighted the return of apartment construction. After a decade of minimal building, we saw 11,000 units in the pipeline. Fast-forward to today, and we’ve seen all of those and more (nearly 13,000 multifamily units) delivered over the past two years. Remarkably, we’ve had a demand absorption of 13,200 units, so the vacancy rate has actually fallen since the beginning of 2013.
At the beginning of 2015, James Real Estate Services reported there are over 20,000 units currently under construction in the metro area. 180,000 more are “proposed”. Most experts are forecasting 10,000 units completed in 2015, with a chance for more if construction delays experienced in 2014 (due to labor and material shortages) are solved this year.
In 2014, the Denver metro absorbed over 8,000 units. We’ll need to exceed that amount for the next three years to avoid a noticeable increase in vacancy rates between now and 2017.
~Greg Johnson (303-343-8333)
Madison Commercial Properties
Madison & Company Properties
1221 South Clarkson Street, Denver, CO 80210