Denver real estate development eclipsed most of the country over the past decade.
StorageCafe’s most recent decade report identifies the best-performing cities in terms of real estate development.
From multifamily construction to commercial property and single-family homes, Denver real estate development eclipsed most of the country over the past decade. The City of Denver ranked No. 9 for most activity across all real estate sectors, which includes single-family, multifamily, self storage, office, retail and industrial construction.
According to the analysis, Denver was the 9th-best city for real estate construction over the past decade, propelled by its lively office, single-family and multifamily construction sectors.
One sector that’s been thriving as of late across the nation is self storage, and Denver is no exception. About 2.3M square feet of storage space was added to the local inventory over the past ten years.
Over the last decade, Denver logged massive real estate additions. Here’s where it shines:
- Multifamily: Approximately 58K multifamily units were added to Denver’s skyline over the past decade, the eighth highest among the 100 biggest urban hubs.
- Single-family homes: Denver registered an impressive 17,900 building permits for single-family homes over the same period.
- Office sector: Denver’s office sector swelled by 11M square feet. That propelled the city to no. 12 in the U.S. in this regard.
- Industrial: Denver recorded important advances in industrial construction, with over 13M square feet of new space delivered from 2013 to 2022.
- Self storage: The city’s self storage sector also experienced an impressive surge in new construction, answering its residents’ complex needs for space. About 2.3M square feet of storage space was added to Denver’s local inventory over the past ten years.
- Retail: Cash registers were ringing, with 3.3 million square feet of new retail construction.
StorageCafe asked Doug Ressler, business intelligence manager at Yardi Matrix, a research firm and its sister division, to provide some insights on the state of the development market and self storage in particular:
“In the face of the recent headwinds felt across the real estate sector, industrial, multifamily and self storage remained the most preferred commercial assets,” Ressler said. “The self storage sector is currently performing well with new supply at healthy levels and demand stabilizing after the pandemic-induced spike. Street rates are still down year-over-year but the drop is moderating as the prime moving season kicks in. In fact, the average rent for a standard unit is slightly up from the previous month and now sits at $127 per month.”
Originally published on Mile High CRE on June 15, 2023.