Brace yourselves – – new property tax assessments will be mailed the first week of May. Every two years the Denver County Assessor’s Office sends out their new valuation notices to property owners. Once again, we expect assessments will be higher than two years ago for most apartment owners in Central Denver.
The Denver Metropolitan Commercial Association of REALTORS® (DMCAR), in conjunction with the Denver Business Journal, honored its top commercial real estate producers of 2018. Greg Johnson and Kyle Malnati were awarded DMCAR’s #7 & #8 broker in the “Small Office” category. Conner Piretti was #9 in the “Young Broker” category.
After six years of steady growth, in 2018 the Central Denver apartment market flattened out. Nearly 1,000 units were sold in 34 transactions, and the average price per unit was $182,938, a slight decrease from 2017’s average of $185,316.
As market influences, our clients often ask us, “where is the market heading?” That question stems from a concern that the next recession will occur soon. The Denver apartment market’s expansion phase has lasted for 7 years resulting in amazing appreciation for multifamily owners.
In April 2016, our clients purchased a Capitol Hill building by putting 25% down, and financing 75% of the purchase price with a loan at 3.55% annual interest, fixed for 5 years. Oh those were the days!
Collaboration leads to exponential success in any business. Helen Keller famously said, “Alone we can do so little; together we can do so much.” It is with great pride and excitement that we officially announce the formation of the Johnson Piretti Team at Calibrate Real Estate.
We all have special people that come into our lives, and most of us have been around long enough to be faced with attending that person’s funeral ceremony. Saying goodbye. It is never easy, and everyone handles grief in their own way.
Encouraging news was published in late July within the Apartment Association of Metro Denver’s 2nd Quarter Vacancy & Rent Report. Drilling down further to the figures reported for buildings with less than 50 units (essentially removing the new construction) provides a clearer picture of how existing buildings are performing.
Higher interest rates are likely to persist through the remainder of 2018, so we should understand both the positive and negative affects this will have on the Denver apartment market. Let’s start with the good news…
Thoughts of where the market is heading are increasingly on our clients’ minds. Is the Denver rental market about peak? Without a clear answer, it’s helpful to look at the factors that determine the direction of the market.