Current State of the Denver Multifamily Market: 2015 is off to a tremendous start for the Denver apartment market. The Apartment Association of Metro Denver reports that vacancy rates are 1/2 a percentage point lower than a year ago (4.7% vs 5.2%), and average rents have increased 12% from a year ago to $1,168. The largest property management company in Central Denver reported to its clients that they began February with a vacancy rate below 1.0%. It is certainly a good time to own multi-family investments in Denver! As values continue to soar, we’ve helped owners successfully increase their portfolios or sell their investments for record prices. Denver was ranked #6 in the country for 2014 job growth in Arizona State University’s annual study, and most experts agree that 2015 will be another healthy year for our economy.
Average Apartment Building Sale Price Increased 19% Since 2013: As shown in our graph above, 2014 was a fantastic year for Central Denver apartment investors. Apartment rents surged to record levels, multifamily operating expenses remained in-check, and property values soared to all-time highs. The average sales price reached $127,275/unit in Central Denver, a remarkable 19% increase over 2013! Of the 66 transactions (10-100 units), only seven traded below $100,000/unit. While it is generally great news, owners should be prepared for a large increase when tax valuations come out May 1st from the Denver County Assessor.
Purpose: The purpose of this multifamily newsletter is to provide insight on the direction of the apartment market in Central Denver, and to highlight the transactions that occurred between December 15, 2014 and March 15, 2015.
About Us: Proudly based in Denver, CO, we are a commercial real estate group that specializes in apartment brokerage and investment sales in Central Denver’s hottest neighborhoods. Principals, Kyle Malnati and Greg Johnson, provide insight and experience to meet the needs of the private apartment investor. Combined, Greg and Kyle have successfully brokered over $240,000,000 of Colorado real estate for their clients.
For more detailed information, or to discuss your investment opportunities, please contact us:
– Kyle Malnati; Cell: 303.358.4250; KMalnati@MadisonProps.com
– Greg Johnson; Cell: 303.810.1328; GJohnson@MadisonProps.com
– Office: 303.771.3850