Overview of the Denver Commercial Real Estate Market
Ever wonder what’s hot in the Denver commercial real estate scene? As a business owner, investor or entrepreneur in the Mile High City, you want to make sure you have your finger on the pulse of the latest trends. After all, you need to find new space for your growing company or identify opportunities to put your money to work. The good news is that Denver’s commercial real estate market continues to thrive, with no signs of slowing down. Several sectors, in particular, are on fire and poised for even more growth in the coming years.
Top Neighborhoods for Commercial Real Estate in Denver
The Mile High City is a hotspot for commercial real estate investment right now. Denver’s population has exploded over the past decade, growing by nearly 20% since 2010. All those new residents need places to work, shop, and play.
Office Space
Denver’s downtown and surrounding areas have a strong demand for office space. Tech companies in particular have been flocking to Denver, drawn by the city’s vibrant culture, recreational opportunities, and relatively low costs of living and doing business. Office vacancy rates have dropped to around 5%, pushing office rents up by double digits. Developers are racing to build new office towers to keep up with demand.
Industrial Properties
Industrial real estate is also thriving, thanks to Denver’s central location and infrastructure. The city is within a one-day drive of major markets across the western U.S., making it an ideal distribution hub. Denver’s airport is also one of the busiest cargo airports, facilitating the transport of goods in and out. With e-commerce booming, demand for warehouse and logistics space shows no signs of slowing.
Retail Spaces
While the retail apocalypse has hit some areas hard, retail in Denver remains stable. Mixed-use developments with a strong “live-work-play” component are still attracting both national chains and independent stores. Restaurants and entertainment venues are also popular, catering to Denver’s large millennial population. Some of the hottest areas for retail include the Cherry Creek mall district, downtown’s 16th Street Mall, and the up-and-coming RiNo Art District.
The opportunities for commercial real estate investment in Denver are plentiful. For those looking to capitalize on a growing market, the Mile High City should be at the top of your list.
Forecast and Predictions for Denver’s Commercial Real Estate Sector
Denver’s commercial real estate market is on fire. Some of the hottest neighborhoods for office space, retail, and industrial properties are:
LoDo (Lower Downtown)
This historic district is filled with renovated warehouses and skyscrapers, home to many tech startups, creative agencies, and e-commerce companies. LoDo offers an urban vibe, walkability, and amenities galore. Rents are high but so is demand.
RiNo (River North Art District)
Just north of LoDo, RiNo is an artist’s haven turned commercial hub. Old factories and warehouses have been converted into shared workspaces, galleries, boutiques, and hip restaurants. It has a grungier, industrial feel and lower price points than LoDo. RiNo’s popularity is skyrocketing, so get in while the gettin’s good.
Cherry Creek
This upscale neighborhood is Denver’s premier shopping and dining destination. High-rise offices with mountain views command the highest rents in the city. Cherry Creek primarily attracts finance, legal, and medical practices due to its affluent demographics. It’s a bit suburban but still centrally located.
Glendale
For small businesses on a budget, Glendale offers lower-cost alternatives just minutes from downtown. There are many mixed-use spaces ideal for creative firms or non-profits. Glendale has a quieter small-town vibe as an enclave within the city. Rents are very affordable, especially compared to other areas.
With booming job growth and population, Denver’s commercial real estate scene shows no signs of slowing down. The time to stake your claim in one of these hot ‘hoods is now. The opportunities for business are endless in the Mile High City!