Thinking about investing in commercial real estate in The Mile High City? You’re certainly not alone!
Denver is known for its magnificent landscapes, thriving cultural scene, and more recently, its bustling real estate market. It presents unique opportunities for savvy investors. However, it’s crucial to understand the potential benefits and risks associated with such an investment.
With this article, we aim to provide a guide to assessing the opportunities and hurdles of Denver’s commercial properties. From understanding the city’s rising popularity to key factors to note when planning an investment, we’ve got you covered.
Key Considerations For Commercial Real Estate Investments
Launching an investment in commercial real estate, particularly in a thriving location like Denver, requires careful consideration of some key factors. Here’s what to keep in mind:
Property Type
Different types of properties bring varying objectives, risks, and returns. Assess whether office buildings, retail spaces, apartments or industrial properties align more with your financial goals and risk tolerance.
Location
Location is key when it comes to a commercial real estate investment. Make sure to do your research on the area, looking into factors such as rental rates and trends, vacancy rates, local amenities, zoning laws, area demographic, crime rates, and potential profits etc. The list goes on and on, which is why having guidance from a local expert can be invaluable.
Being one of the fastest-growing cities in the United States, Denver’s influx of new residents indicates a robust demand. This makes it a prime location for commercial real estate investments.
Vacancy Rates
Low vacancy rates typically indicate strong demand for commercial space in the area, with good investment potential. Whereas high vacancy rates suggest an oversupply of commercial properties relative to the demand. With a low commercial vacancy rate of 6.8% in Denver and 58.4M sq ft of vacancy, there’s ample space to plan out your investment.
Market Development
Keep an eye on these new developments as it’s an indicator of a growing economy, and it can be a potential opportunity to get in on a good investment early. With 13.3M sq ft of commercial real estate projects currently under construction, and a staggering 862M sq ft of commercial buildings already standing tall, Denver’s commercial real estate activities aren’t slowing down. Such a vibrant market guarantees future possibilities for investors.
Local Economy
The health of Denver’s economy can greatly impact your investment outcomes. A strong, growing economy can lead to increased demand for commercial spaces. By cross-referencing quarterly property market updates and conferring with industry professionals, you can gain valuable insights into the economic conditions of a particular area.
Why Denver?
Denver is known for its vibrant economy, one of the key factors that makes it an attractive site for commercial real estate investment. With a bustling city life, there is a steady demand for office spaces, retail outlets, restaurants, and other forms of commercial real estate.
Furthermore, Denver’s commercial real estate market is wide and diverse, boasting an impressive 862 million square feet of commercial buildings. Currently, the city has a huge amount of commercial real estate under construction, testament to its growing popularity and potential for expansion.
Denver is a thriving city, with an ever-increasing population and business proliferation. The city’s robust foundation, coupled with its rising popularity, makes it a hotbed for commercial real estate investments. Successful investment involves analyzing potential risks, understanding market trends and, above all, choosing the right location. And Denver, with its thriving economy and vibrant urban atmosphere, tick marks on all these parameters.
If you’re thinking of investing in Denver commercial real estate, reach out to the experts at Denver Commercial Properties. With extensive knowledge and experience in Denver and surrounding areas, they are more than equipped to help guide you into a great investment.