Metro Denver Multifamily Market
* The number of new units added during the past two years has been
limited. New inventory is expected to increase in 2013 compared to
past years which could cause an increase in vacancy. Currently, there
are over 13,000 units under construction and another 18,000 units in
various stages of the planning cycle.
* The vacancy rate decreased during the first quarter ending at 4.6
percent. Two counties had slightly higher vacancy rates from the fourth
quarter and four counties were down. Historically, vacancy rates are
higher in the fourth and first quarter compared to the second and third
quarters.
* Metro Denver saw a record number of sales during 2012. Sales slowed
down slightly in the first quarter of 2013, but it is still expected to be a
strong year for multifamily investment sales.
* According to a report released by the Apartment Association of Metro
Denver, apartment rents in the Denver Metro area are at an all time
high. Overall, average rental rates have increased from around $800 in
2002 to over $992.89 this quarter.
* The unemployment rate in Colorado is 7.2% for February 2013, down
from 7.5% in December. Colorado is slightly lower than the national
unemployment rate of 7.7%.
Adams 5.2% $910.71 $1.11
Arapahoe 4.1% $950.29 $1.10
Boulder/Broomfield 3.2% $1,150.02 $1.33
Denver 5.4% $1,008.67 $1.24
Douglas 6.5% $1,186.34 $1.20
Jefferson 3.7% $958.08 $1.14
Hottest Sub-Markets
Vacancy Rate Average Rent Rate (/sq. ft.)
Adams 5.2% $910.71 $1.11
Arapahoe 4.1% $950.29 $1.10
Boulder/Broomfield 3.2% $1,150.02 $1.33
Denver 5.4% $1,008.67 $1.24
Douglas 6.5% $1,186.34 $1.20
Jefferson 3.7% $958.08 $1.14
Vacancy Rate
4.6% Last Quarter: 4.9%
Average Rent
$992.89
Last Quarter: $978.99
Average per sq. ft.
$1.16
Last Quarter:$1.14
Aurora – Central NE
2.3%
Boulder – University
0.3%
Denver Northwest
0.0%
PREV. YEAR Discount / Concessions
7.2% Last Quarter: 7.4%
Economic Vacancy
11.8% Last Quarter: 12.3%
Net Absorption (Units)
1,985
Last Quarter: -1,625
Metro Denver Vacancy & Rent Report
E xEcutivE Summary • 1St QuartEr 2013
Boulder – Except University
1.4%
Longmont
2.3%
Yearly Economic Vacancy (Average of all four quarters)
Denver – Central
2.9%
MultiFamily Investment Observations
n Low vacancies and increasing rental rates have made the
multifamily market attractive to investors.
n The vacancy rate decreased this quarter from last quarter.
During the first quarter of 2012, vacancy stood at 4.9 percent.
Buildings with 200-349 units had a higher vacancy rate, while
buildings with 51-99 units had the lowest vacancy rate at 2.7
percent.
n Average rental rates are up this quarter and stood at $992.89.
During the first quarter of 2012, the average was $952.60.
n Denver’s multifamily sales market was one of the nation’s
hottest markets in 2012. Denver continues to be a hot market
for investors to place capital.