DENVER, COLORADO (February 17, 2023) – Dave Martin, managing director of Northmarq’s Denver investment sales team, recently spoke with Mile High CRE about operating conditions in the Denver multifamily market softening during the fourth quarter. This occurred as asking rents declined and the vacancy rate approached a two-year high, according to Northmarq’s recently released Denver Q4 Market Report. The Denver market’s first quarter of negative net absorption in more than a decade was the catalyst for these cooling conditions.
“Until the end of 2022, the Denver market had been performing at an elevated level, with developers active, but unable to keep up with new renter household formation. So, the market is beginning this year from a healthy position,” said Martin. “Looking ahead through the remainder of 2023, I think we’ll see a bit more equilibrium of supply-demand overall, with a few submarkets where developers are likely going to deliver more units than there is new demand for in the near term. From an investment standpoint, the built-in long-term demand drivers that attract investors to Denver remain in place.”