With the Economy at Bottom, Apartments Are a 'Perfect Storm'

DENVER-The local economy is at the bottom, while the local apartment market is suffering from conditions that led to a “perfect storm.” That’s the word from Hessam Nadji, SVP and managing director of Marcus & Millichap. Nadji, based in San Francisco, recently came to the city to make a presentation.

“Historically, as the US economy goes, so goes Denver,” said Nadji. “Although there have been periods when the Denver economy lost jobs, while the national economy didn’t (as in the mid-1980′s), Denver has followed the national job trend during the most recent economic slump, though job losses in Denver have been especially severe. Fortunately, as the tide rises for the nation, the Denver region should once again see good job growth, which should become visible by mid-2004.”

Still, he noted, job losses have hit the city especially hard. “However, the bottom has been hit, and the consensus among local and regional economists suggests that 2004 should see between 1.5 and 2% job growth,” Nadji said. “Near term, about 25% of Denver metro area companies polled by Manpower expect to add workers during the fourth quarter 2003, up substantially from the third quarter response of only 15%. That’s encouraging news, and the early signs of the local recovery.”