In 2017, Denver had a record year for new commercial real estate construction. Real estate developers have added more than 5 million square feet to Denver’s portfolio of commercial real estate space in the industrial sector alone. The last time the industrial real estate sector grew that much in one year was 2001.
The CBRE Group Inc., which analyzes commercial real estate trends, claims that the new commercial construction in Denver has primarily focused in the North Denver and Airport areas. In addition to the industrial real estate growth, there have also been some impressive and high-dollar sales of newly built office space. According to CBRE’s vice president, “From 1401 Lawrence to the Triangle Building, Granite Place, the Arrow Building, INOVA and more, we’ve never seen this many new-construction deals sell.” The vice president said that the real estate sales have brought in a significant amount of new capital in the Denver area because many of the buyers have never been the owners of Denver property before.
According to research, real estate developers built 4.5 million square feet of new office space in Denver last year and over 50 percent of it has already been pre-leased. This means that tenant demand is high in the area, which is an excellent sign for growth.
If you’re considering an investment in commercial real estate in Denver, it’s important to be fully up to date on zoning laws, real estate law and other market considerations that uniquely apply to the Denver area. Once you understand the law, and the markets, the sky could be the limit in what you are capable of achieving with your investment goals.
Source: Denver Business Journal, “2017 was a year of commercial real estate growth for metro Denver, says CBRE,” Kelcey McClung, Jan. 9, 2018