One thing has been reportedly been rising at a record rate... the cost of rent.

The Denver Post reported in yesterday's article "Metro-area apartment vacancies hit 10-year low, pushing rents up" that rates are up and vacancies are down and continuing to trend that way. This Denver Post article states

"Green's analysis is supported by a report released Monday that said apartment vacancies in the metro area have fallen to a 10-year low in the second quarter of 2011, with a vacancy rate of 4.8 percent.

And with declining vacancy rates, there has been a jump in median rents."There are a few things going on in the market right now.  With vacancy rates dropping landlords are finding that their properties are renting faster, that they are getting higher rents, and that many are asking for longer term rental periods.

From a real estate perspective and new construction in Downtown Denver lofts and condos this means developers have been sizing up different opportunities for their land.  With rental rates increasing and the demand for rental properties growing it just makes sense to build apartment buildings instead of condo buildings.  For example in Riverfront Park the site in front of the Manhattan is currently underway for a second phase of rental properties.

Additionally a letter just went to Riverfront Park residents proposing another rental building on the land adjacent to the Railyard Dog Park with 242 more rental units.

So with Rents on the rise we've had a growing interest from clients interested in Investment Properties as well.  Some of the most popular (aka highest renting psf) properties such as the SPIRE and Glass House are drawing interest as well as the many investment properties throughout Denver.

But perhaps the biggest trend has been a focus on taking advantage of great real estate opportunities that exist today (often in the same buildings as SPIRE and Glass House) for primary residences because with rents so high the value of home ownership is becoming even more attractive.  And with new plots of land being developed as rental properties the schedule for a new SPIRE or Glass House project to become available is moving farther and farther off into the horizon.

To learn more about the great downtown Denver condo and Downtown Denver loft opportunities for primary or investment goals please feel free to contact any of our team members at New Era Realty.