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RERC Rates Local Markets Below Average

DENVER-Investment conditions for multifamily rental properties rate 6.3 on a scale of 1 to 10, while hotels check in at 2.8, according to Real Estate Research Corp.'s "Charting a New Course -- Choppy Waters Lie Ahead.

By John Rebchook | Updated on March 11, 2002

DENVER-Investment conditions and anticipated growth rates for nine classes of commercial real estate in the Denver area are below average, according to the Chicago-based Real Estate Research Corp. RERC recently released a national report on titled ”Charting a New Course — Choppy Waters Lie Ahead.”

On a scale of 1 to 10, with 10 being excellent, investment conditions for all product types were listed as a 4.7. Anticipated growth in all rents rated only a 2 and anticipated values over the next year ranked only a 2.8. Investment conditions for multifamily rental properties were ranked the highest at 6.3, while hotels were ranked the lowest at 2.8.

The CBD, suburban, warehouse, R&D, regional mall, power center, neighborhood/commercial center, apartments and hotels were ranked. In each of the categories, the pre-tax yield was slightly higher in Denver. The yields also were higher in the West region and the US as a whole.

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