The office product type has been significantly impacted by the response to covid in Denver and throughout the country. Unfortunately, Denver hasn’t fared as well as other markets. We have seen six consecutive quarters of negative net absorption from a leasing standpoint.
I am surprised by what I am seeing in the retail product type for Denver Commercial Real Estate. Although there are struggles in retail they don’t seem as bad as what is happing in office. As I drive around Southlands Mall in SE Aurora it sure looks like they have lost occupancy. Let’s check it out some of the key metrics for retail.
Industrial commercial real estate in Denver is very interesting to watch. Many reports show a massive increase in e-commerce during 2020 as more and more purchases were made online. This is one of the driving factors behind the health in the industrial market. Also, companies are expanding their distribution and logistics facilities to get product closer to the end users. Let’s dive in and review some of the metrics.
Multi-family commercial real estate still seems to be the favored product type. It is the easiest to lease and the easiest for most people to understand. Tenants need a place to live, so they rent an apartment for a year.