Denver’s Decade-Long Renaissance
In the latest decade report from StorageCafe, they delve into the thriving world of real estate development to uncover the best-performing cities across various sectors. Denver emerges as a star performer, eclipsing much of the nation in the past ten years. Because Peakview Investments remains extremely active locally, we wanted to highlight Denver's impressive achievements in the real estate development landscape.
A City of Diverse Real Estate Success
From the construction of multifamily units to commercial properties and single-family homes, Denver's real estate development has soared to new heights over the past decade. The Mile-High City secured the 9th spot nationwide for its remarkable activity in all real estate sectors, encompassing single-family, multifamily, self storage, office, retail, and industrial construction.
Denver's Top Rankings in Real Estate Construction
Denver's real estate prowess shines through its diverse sectors:
Multifamily Development: Denver's skyline witnessed the addition of approximately 58,000 multifamily units during the past decade, positioning it as the eighth highest among the 100 largest urban centers in the country.
Single-Family Homes: Denver displayed its commitment to housing with an impressive 17,900 building permits issued for single-family homes over the same period.
Office Sector: Denver's office sector experienced remarkable growth, expanding by a staggering 11 million square feet. This achievement catapulted the city to the 12th position in the United States in terms of office construction.
Industrial Advancements: The industrial construction sector in Denver also witnessed significant progress, with over 13 million square feet of new space delivered from 2013 to 2022.
Self Storage Surge: Reflecting a nationwide trend, Denver's self storage sector experienced substantial growth. Approximately 2.3 million square feet of storage space was added to the local inventory over the past decade, addressing the complex storage needs of its residents.
Retail Resurgence: Denver's cash registers rang as it saw the construction of 3.3 million square feet of new retail space.
To gain deeper insights into the state of the development market, especially within the self storage sector, StorageCafe turned to Doug Ressler, Business Intelligence Manager at Yardi Matrix. Ressler shared his thoughts on the current landscape:
"In the face of recent challenges in the real estate sector, it's noteworthy that industrial, multifamily, and self storage assets have remained the preferred choices," Ressler noted. "The self storage sector is performing well, with new supply at healthy levels and demand stabilizing post-pandemic disruptions. Although street rates have seen a year-over-year decrease, the decline is moderating as we enter the prime moving season. In fact, the average rent for a standard storage unit has slightly increased from the previous month, now resting at $127 per month."
Denver's remarkable journey through the past decade in real estate development showcases its resilience and commitment to creating a diverse and thriving urban landscape. With its impressive growth across various sectors, Denver continues to be a shining example of real estate success in the United States.
