The Denver Commercial Real Estate market has been very interesting to watch as we embarked on 2022. The four major property types in this analysis are retail, multi-family, office, and industrial. It is interesting to study each property type while considering the market as a whole.
Well, 2022 sure is off to an interesting start! The residential real estate market saw a lot of changes in 2021 and 2022 is looking like we will continue to see tight inventory and strong buyer demand. The 30-year mortgage interest rate has moved from 3.0% to 3.9% over the last 1.5 months in anticipation of the Federal Reserve increasing the interbank lending rate.
The retail property type for Denver Commercial Real Estate appears to have turned the corner during 2021. The 2021 sales volume for this property type exceeded $1.7B compared to $1.49B in 2020 and $1.3B in 2019. Let’s dive into supply, demand, new construction, and leasing.
There are a lot of opinions about the future of commercial office space. There are signs that Denver maybe turning the corner.
The Multi-family property type had another HUGE quarter! There was nearly $4.8B in sales in Q4. Multi-family commercial real estate is hands down the favored property type of this cycle. Residential is the easiest to lease and the easiest for most people to understand. Let’s dive into supply, demand, new construction, vacancy rates, and leasing.
The Industrial property type for commercial real estate in Denver had a big end to the year. New records were set for the sales volume and net absorption. Some say demand for Industrial is peaking. Yet Prologis, the largest developer of industrial has a $26B backlog of construction with most of it being build-to-suite.