There's A Race Between Supply And Demand In Denver (So Far, Demand Is Ahead)
Denver has one of the most dynamic real estate markets in the country, but does that mean supply is about to race past its robust demand? Find out at our third annual Denver New Construction & Development event Oct. 19 at Marriott City Center.
Trammell Crow Residential managing director Matthew Schildt, who will be a speaker, tells us while there's ample new supply coming, "we're still producing more than enough jobs to create demand for that supply. The market's producing about 50,000 jobs a year in metro Denver, which should roughly equate to demand for 10,000 new apartment units. That’s roughly equivalent to our forecast 2016 and 2017 deliveries of 12,000 per year."
Matthew says in the current permitting and financing environment, that forecast may even be a bit aggressive. "I don’t think rents will keep charging forward as they have been, but seems like there's ample demand for supply that will come into the market in ‘16, ’17 and ‘18.”
Trammell Crow Residential kicked off construction in the Denver CBD this summer of the 354-unit Alexan 20th Street Station, for completion in September 2018. The name refers to RTD’s 20th and Welton light rail station, which is about 200 feet from the development site.
LCP Development principal Jonathan Bush, who will also be a speaker, tells us LCP continues to see "strong demand for mixed-use development in transitioning infill submarkets, particularly if existing buildings can be preserved and renovated.”
LCP has partnered with Blue Capital to develop Oxford Station, which is also a TOD, immediately adjacent to the Oxford light rail station platform along the southwest light rail line. The mixed-use development will involve two new buildings but also revitalize a 9,400 SF 1920s-vintage bowstring truss building that will house a portion of the 238-unit apartment complex's amenity space as well as 7,800 SF of retail space.
Here more from Matthew and Jonathan and the other expert speakers at our third annual Denver New Construction & Development event, beginning at 7:30am Oct. 19 with breakfast and schmoozing at Marriott City Center.
