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Trends to Look Out for in the New Year for Commercial Real Estate in Denver

January 2, 2019

2019 has arrived and with it brings a ton of new opportunities and trends to make yourself aware of as the year progresses. Staying up-to-date with the latest trends can mean the difference between landing a property which pays serious dividends or being left with an asset which is hard to sell to potential tenants and leaving you with a serious amount of regret. To avoid being the investor that didn’t stay up on the newest information present in the marketplace, here are a few of the important trends to be aware of for commercial real estate in Denver.

Industrial Boom to Continue, Especially for E-Commerce Businesses

There are certainly a few parts of the commercial real estate markets in Denver which are not the best investment opportunity, specifically when it comes to large malls. As more traffic goes online, expect retailers to begin to need a different kind of space when it comes to a commercial property. One big sector which has received a massive amount of growth in the last few years is the need for server farm properties, which house large amount of data-storage and dedicated server equipment. 

These businesses services serve many companies, including any firm which has an online presence, which is practically every company which is keen to expand its market opportunities. Server farm properties as well as storage and warehouse facilities tailored for e-commerce companies should remain a hot sector of the real estate marketplace. With most businesses moving online, it’s wise to look into these types of properties.

Federal Reserve Increasing Interest Rates

As the economy has increased in strength over the last few years, rebounding from the great recession to see the stock market hit all-time highs, expect the Federal Reserve to continue raising interest rates. Interest rates were at record lows for a long period of time to encourage economic activity and boost lending practices, but with a stronger economy, the Fed has gradually increased interest rates to all financial institutions. 

This rate increase is passed down to lenders of all types, which includes the commercial real estate sector. If you are thinking about purchasing a new property in 2019, contact your local lender to see what your prospects are in terms of locking in a better rate before they get any higher. It’s possible that the Fed may pause any more interest rates if the economy slows down enough, but the forecast is currently set for higher rates in the new year.

If you’re seeking a qualified and knowledgeable real estate firm in the Denver area to assist you through the property investment and development process, Elevation Group is your preferred choice in the mile high city. We offer expert advice and help from start to finish in order to ensure your commercial or residential project is a smooth success, providing you with the needed peace of mind to make your dreams a reality. Contact us today to begin the process of building your dream property development.