These are the recommendations of Chicago-based Real Estate Research Corp., which released its fourth quarter analysis of cities across the country, entitled "The Longest Yard." On a scale of one to 10, with one being no risk and 10 being high risk, the CBD's office market has received a score of 3.7 and the only buy recommendation.
Other scores and recommendations are suburban office, 7.3 and sell; warehouse, 8 and sell; industrial R&D, 5.3 and hold; regional Malls, 4.3 and a zero score and a hold. Other rankings are power center, 7 and hold; neighborhood/community shopping center, 6.7 and sell; apartments, 5.3 and -0.7 score and hold; and hotel, 8 and +0.7, for a sell/hold score.
The report says the Denver area economy has begun to slow, which could impact growth in residential and commercial construction, high-tech expansion and overall migration. Despite the slowing growth, the apartment sector should fare well, it says, as supply can finally catch up with demand.
"Concern lies in the expanding industrial sector if the high-tech area is hit hard with a shakeout," the report warns. "However, the market is poised to find a relatively soft landing as vacancy rates remain below the 8% mark, and construction occurs at a lower pace relative to the past two years."
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