Denver Multi-Unit and Apartment Analysis
This past weekend the Denver Post had a great article discussing the current Denver Multi Unit/Apartment market. Essentially the main points discussed were Multi Unit Rents are 38% higher than inflation, and vacancy rates are their “lowest level since the third quarter of 2008, when it was 6.5 percent, according to the Apartment Association of Metro Denver and the Department of Local Affairs Division of Housing.”
Rents for other types of property have not kept pace with inflation over the long haul: Office rents are only 4.21% over inflation, industrial rents are 7.15% over inflation. I don’t think you need to be a mathematician to see the benefit of Multi Units in Denver coming in at 38% over inflation right now.
“With population growing at a faster rate than apartment construction, it’s likely Denver’s vacancy rate will continue to fall. Apartments also have lower property taxes than other types of real estate.”
“I feel a good strategy moving forward is to buy Multi Units, in ideal locations, and hold them until the condo market starts to turn. Until that time, you’ll have significant cash flow that you can put towards a Condo Conversion when the market dictates.” Brian MacMillan
For more info on the Multi Unit market, or Multi Units For Sale, or to browse Investment Properties, please Contact Me.
-Brian MacMillan
