Development of mixed-use, hospitality and commercial properties in the Mile High City is so rampant, it’s causing some to question if the crane is the state’s new bird. Denver, CO claims the title of the fastest growing major city in the U.S. and ranks second in the nation for its number of multifamily cranes in service, making it an ideal place for commercial investment.
In the U.S., the commercial real estate market is slowly making gains and experts are optimistic about the future. Newly-inked market research reveals that increased employment rates and steady growth in the nation’s Gross Domestic Product (GDP) are boosting consumer confidence and as a result, more people are spending money and driving lucrative commercial deals in locations throughout the nation.
In a Q3 2016 U.S. Economic Forecast, Deloitte estimated that GDP is slated to grow by 2.5 percent in 2017, which could help maintain steady industry growth.
Leveraging new trends, responding to widescale shifts in demographics and adapting to regulatory change are among the most crucial challenges investors faced with today. However, new technology, such as the Internet of Things (IoT), cloud computing and advanced analytics are improving the speed and efficiency of the industry for the better, making it easier for investors to research and act independently online.
With a slew of good news about commercial investment coming from a myriad of locations across the U.S., we chose to zoom in to the booming city of Denver in this week’s outlook snapshot. Here’s a quick rundown as of June 2016 from the folks over at LoopNet:
Multifamily
The median asking price per unit is up 11.4 percent in comparison to the three months prior to the report’s release and 16.6 percent in the last year. In the county, asking prices have risen 11.3 percent at $197,976 above the city’s, which is $202,823. In the state, the average asking price per unit is $115,944.
Office
The median asking price per square foot increased by 4.8 percent in comparison to the three months prior to the report’s release and 11 percent in the last year. In the county, asking prices rose 3.7 percent at $211 per square foot in comparison to the city’s median price of $202 per square foot. Average rental rates per square foot sit at $22.48 per square foot, which is an increase of 2.8 percent in comparison to the three months prior to the report’s release.
Industrial
The median asking price per square foot increased 2.6 percent in comparison to the three months prior to the report’s release and 19.6 in the last year. In the county, asking prices have increased by 1.6 percent at $230 per square foot in comparison to the city, which sits at $229. Average asking rental rates per square foot fall to $23.06 in comparison to the three months prior to the report’s release and 3.1 percent in the last year.
Retail
The median asking price per square foot increased 2.6 percent in the three months prior to the report’s release and 19.6 percent in the last year. In the county, prices are 1.6 percent higher at $230 per square foot in comparison to the city’s median price of $229. Average rental rate per square foot is $23.06, which is up 3.1 percent in comparison to the three months prior to the report’s release and up 8.2 percent in the last year.