CBRE has released its Q2 2024 Denver multifamily and retail reports. According to the report, strong renter demand continues to absorb record multifamily deliveries, while retail availability was compressed further this quarter.
Denver Multifamily Figures Q2 2024
- The overall occupancy rate remained unchanged at 93.9% in Q2 2024 but decreased 20 bps year-over-year. The historical Q2 occupancy from 2000-2019 averaged 94.1%.
- The average effective rent increased 1.5% to $1,919 per unit or $2.20 per square foot (sq. ft.), up approximately $28 per unit quarter-over-quarter but unchanged year-over-year.
- Development activity appears to have peaked with a high volume of deliveries and few new starts. At the end of Q2 2024, there were 30,599 units under construction across 119 communities.
- Completions remained elevated with 4,502 new units having delivered this quarter. Deliveries are expected to remain elevated through 2024 as many developments are nearing completion.
- Net absorption was positive 4,285 units in Q2 2024. Demand remained strong as metro Denver recorded the eighth highest Q2 2024 net absorption across all markets in the U.S.
- Q2 2024 transaction volume totaled $720.7 million, a decrease of 28.1% quarter-over-quarter. Year-to-date transaction volume totaled $1.7 billion, a significant increase of 65.1% year-over-year.
- The Denver retail market ended Q2 2024 with an availability rate of 4.8%, which represents a 10-basis-point decrease from the previous quarter.
- Total net absorption reached 262,000 sq. ft. in Q2 2024, a sizable increase from the 81,000 sq. ft. seen in Q1 2024.
- New construction deliveries totaled 23,000 sq. ft. this quarter, nearly identical the 26,000 sq. ft. that delivered last quarter.
- The overall average asking rent for retail space in Denver ended Q2 2024 at $20.05 per sq. ft. NNN, which marks a slight decrease of $0.19 per sq. ft. from Q1 2024’s average.
- Total retail investment sales volume in Q2 2024 amounted to $67.9 million, a notable decline from the $128.7 million that was transacted in the first quarter of 2024.
