DENVER-The local multifamily rental market appears to be bucking the trend of a slowing economy and softness in most aspects of the commercial real estate market. ”With all of the doom and gloom regarding the economy these days, the prognosis for the Denver apartment market is favorable,” says an apartment report form Marcus & Millichap.
It says especially strong submarkets are expected to be downtown and along the US 36 corridor, where the lack of available sites and zoning restrictions, will limit competition.
”Continued low vacancy and solid rent growth will persist through the end of the year,” according to the report. ”Even though job growth will slow, enough new jobs will be created this year to absorb the majority of the new units coming on-line, relieving fears of over buildings in most areas.”
Also, unlike the boom and bust of the 1980s, developers and lenders are showing more restraint. Lenders and developers want to ”avoid the debacle that is still fresh in many people's minds,” the report notes.
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