InvestmentMultifamilyReports

Denver Multifamily Market Sees Highest Absorption in More Than 20 Years

Multifamily investors continue to focus on the Denver market, where rent growth reached 16.5% over the past year, ending with Q1 2022. According to a Mid-Year Multifamily Review by The Laramar Group, a leading national real estate investment and property management company based in Denver, the Denver multifamily market is expected to remain resilient through 2022, mirroring a national outlook for this property type.

Demand for rental housing is strong in many U.S. markets and new supply is also positive, with 10,700 apartment units added in Denver over the past year. Among the trends The Laramar Group is tracking are:

  • Strong absorption —  Q1 2022 saw the highest absorption in more than 20 years. Denver was ranked 9th among high population growth markets for net absorption, with 18,400 units absorbed, according to commercial real estate firm CBRE.
  • Construction will continue at a steady pace, given population shifts and housing demand.

“We are expecting continued upward trajectory for rents in the multifamily sector, especially in the Mountain states and Southeast region where demand drivers such as job and population growth are strong,” said Bennett Neuman, Chief Investment Officer with Laramar. “At the same time, the recent dislocation in the capital markets may present interesting acquisition opportunities on a selective basis.”

Over the past 18 months, Laramar has closed on six multifamily acquisitions in high-growth markets such as Orlando and Denver, and mature markets including Chicago and Washington, D.C.. Those acquisitions totaled 1,675 units and had a total capitalization of $490.7 million. They include City Gate, a 241-unit property, and Avery Park, a 296-unit property, both in the Denver market; Fusion Apartments, a 192-unit property, and Castilian Apartments, a 304-unit property, both in Orlando; Covey at Fox Valley, a 216-unit property in the Chicago market; and Crossings at Russett, a 426-unit property in the Washington, D.C. market.

Founded in 1989, Laramar Group is a vertically integrated and distinguished national real estate investment and property management corporation with a multi-billion dollar portfolio. For over 30 years, Laramar has delivered an unparalleled level of service to the real estate industry. Laramar has a presence in over 20 markets from coast to coast and maintains corporate offices in Chicago and Denver.

Photo courtesy of The Laramar Group

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