Thinking the Denver commercial real estate market was going to slow down in 2018? Think again. The market continued grow, as the real estate boom has not shown any serious signs of slowing down. The cost to lease commercial real estate space reached its highest level for the Denver market, hitting an estimated $19.34 per square feet at the end of 2018. This is a positive signal to investors looking to dip their toes into the marketplace, as Denver commercial real estate continues to be a hot commodity worth investing in.
Matt Vance, the director of research and analysis for real estate services firm CBRE, openly wondered if the commercial real estate market will ever trend downward. The current bull cycle for the marketplace doesn’t show any serious signs of a slow down
, and it appears the current marketplace still has plenty of room to grow. Denver has grown significantly in the last decade, due to a number of factors including marijuana legalization, a booming economy, and an influx of new residents moving into the area.
To give you an idea of how hot Denver commercial real estate was in 2018, more than 700,000 feet of retail space was gobbled up by tenants during the 12-month period. Meanwhile, vacancy rates have remained at 7.2 percent, despite the fact that there are plenty of new developments which have increased the total amount of space available in the marketplace. Retail and office developments continue to be something worth investing in, as the cost of office space has ballooned to an all-time high of $28.34 per square foot. Although 2.9 million square feet of office space was sucked up by tenants, and all of this with approximately 3 million square feet still under construction across the overall Denver marketplace.
Prices in areas such as LoDo, RiNo, and the LoHi neighborhoods continue to climb, as these parts of the city are seen as attractive places to have a business. Young professionals a drawn to areas with plenty of restaurants, bars, and shopping nearby, and these parts of Denver are certainly awash in these kinds of businesses. Many individuals and companies who purchased property a few years ago have already seen the overall price of their property appreciate to an incredible degree. Indeed, commercial real estate remains one of the most trusted and dependable ways to invest your money, and the marketplace doesn’t appear to be slowing down any time soon.
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.