Multi Family – Denver

I couldn’t help it – once I played with the numbers to get this graph I had to use it. Maybe I need to take a trip to the mountains as most people will not see the irony of this chart  looking like a mountain range at first look.In short, this is a ten (10) year history  by month of the number of Multi Unit Housing (MUH) transaction in the county of Denver. From this data, I take away the flowing statistics:

  • Denver averages just under 12 MUH transactions a month over the last 10 yrs
  • Denver is averaging 11 MUH transaction through Q2 of 2018
  • Seasonal trend appears that Q2 tracks lower than the beginning / end of year

With only two (2) transactions closing in April, it’s easy to jump to the assumption that 2018 is running slower than 2018 in terms of MUH. However, If were look at the transaction volume 2017 came in at $330m from Jan through April and 2018 has tracked at $365m for the same period. Therefor, it tough to definitively say if 2018 will continue to be either higher or lower than last year.

Okay, after the last chart I had add some insight as I felt like the last 12 months doesn’t help fully explain the complexity in the MUH space as I know this is the largest segment in commercial space right now in Denver.

In my opinion, I think the data shows the results of the construction defect impact through the build up of the market place in 2011/2012. My guess is that if we could also add the data of condo/town-homes to this chart we would see an equal offset which gives me confidence that we will continue to see a strong market for MUH.

I have tracked the industrial, retail, office, and land separately in the same way as I have the MUH product. If you are interested in these details, please do not hesitate to reach out to me – I’m happy to share.

In fact, if you have ANY commercial real estate questions / concerns I am happy to help – just let me know.

Mountains in Denver?