DENVER, Oct. 2007 – After a modest uptick in vacancy in the third quarter, supply and demand are expected to remain balanced through the end of the year, leading to healthy rent growth for Denver-area apartment owners, according to a third-quarter Apartment Research Report by Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm. With few completions slated for the next three months, the metrowide vacancy rate is forecast to remain stable through year-end 2007, enabling the strongest rent growth in the last six years.
“One the investment side, the recent change in capital market conditions will dominate deal flow in the Denver apartment market through the remainder of 2007 and into 2008,” says Adam Christofferson, regional manager of the Denver office of Marcus & Millichap.
Following are some of the most significant aspects of the Denver Apartment Research Report:
· Denver-area employers are expected to add 17,300 positions in the metro by year’s end, an increase of 1.4 percent.
· Developers are forecast to bring 1,100 apartment units online by the end of 2007.
· Vacancy is expected to finish the year at 8 percent, down 30 basis points from year-end 2006.
· Asking rents are expected to reach $866 per month by year end, up 2.2 percent year over year, while effective rents will advance 2.5 percent to $770 per month.
· The median sales price has inched up 0.7 percent in the past 12 months.
For a copy of the complete Denver Apartment Research Report, as well as reports on other markets nationwide, visit our website at www.MarcusMillichap.com.
# # #
With more than 1,300 investment professionals in offices nationwide, Encino, Calif.-based Marcus & Millichap Real Estate Investment Services is the largest commercial real estate brokerage in the nation focusing exclusively on real estate investments. In 2006, the firm closed $20.5 billion in transactions. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization; local market expertise; the industry’s most comprehensive research and analysis capabilities; state-of-the-art technology; and established relationships with the largest pool of qualified investors nationally.
By Stacey Corso, Marcus & Millichap
