IRR-Denver Mid-Year Viewpoint 2015 Local Market Report - Multifamily
The apartment market remains strong with multiple transactions during the first half of 2015. Transaction volume is expected to remain steady throughout the remainder of 2015. High sales volumes and record sale prices have had an impact on the re-assessment of multifamily properties for real estate taxes payable in 2016, and real estate taxes could increase as much as 20%. The core areas of the metropolitan market are the US-36 corridor, downtown Denver, and southeast I-25 corridor.
Capitalization rates are location-driven, particularly for 1970's properties, while 1980's and 1990's properties are generally considered value-add since they have desirable features such as separate gas metering and washer/dryer hook-ups. Marketing times are typically less than 2 months. Despite predictions over the past year that rental rates would stabilize, the overall Denver metro area has seen continuing record rental increases year-over-year across all property classes.
New construction remains strong with 7,588 new units opened in 2014 alone and 1,678 permits pulled in the first quarter of 2015. Notable projects include The Confluence, a 228-unit 34-story luxury tower adjacent to the CBD and Country Club Towers 2 & 3, with two 32-story towers containing a total of 558 units in Denver's highly desirable Washington Park neighborhood.
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IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.