Denver's Commercial Market at the Top
Metro Denver's commercial real estate market continues to be a bright star among large U.S. cities. National and international investors have Denver on their radar screen for investment.
Commercial transaction volume is down from the prior year but Denver continues to be a strong market. Absorption continues to be positive, lease rates steady to up, and vacancy rates for industrial, retail and office remain low.
The subprime meltdown of residential real estate has spilled over into commercial financing. Even though commercial properties have an extremely low national foreclosure rate, lenders have increased their down payment requirements and tightened underwriting criteria. Commercial loans are still available to higher quality borrowers. However, the borrowers who need higher leveraged transactions are finding it difficult to finance the transactions. Commercial mortgage brokers are working harder than ever to match up borrowers and lenders.
While most Denver area sub-markets are doing well, the Denver-Boulder I-36 corridor is the one attracting most of the attention. With the announcement of the coming ConocoPhillips move bringing 7,000 jobs to the area, commercial real estate is hot in this sub-market.