DENVER—Conservative growth. Maybe a bit too conservative given the demand. A market where the majority of the building stock is at least 30 years old can use some new development. But in the face of this conservative approach, it may not be happening quickly enough.
That's the basic theory expressed to GlobeSt.com by professionals in the local office of architecture giant Gensler. “Vacancy rates are certainly projected to be low enough to drive new growth,” says local-office principal and managing director Jon Gambrill. “But the market is very much a mix between safe and conservative.” A lack of development after the 1990s recession positioned the market to remain relatively tight, and post-recent recession, that approach seems very much alive.
Today, he reports, while there is some new office development taking place, “we're seeing some conservatism and a resistance to becoming too speculative. We have just enough energy in our market to cause a little concern,” even though that industry is no longer the prime market driver.
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
