Navigating Denver’s Construction Landscape in 2024

In the Mile High City, market uncertainty continues to play a part in guiding the decisions of developers and investors alike.

Source: “Navigating Denver’s Construction Landscape in 2024” By Dan Feagans, LEED AP BD+Cvice president, Brinkmann Constructors for MileHigh CRE

In the Mile High City, market uncertainty continues to play a part in guiding the decisions of developers and investors alike. With high interest rates and an ever-growing project pipeline, some sectors are experiencing more movement than others. While certain segments like speculative industrial projects have witnessed a slowdown, developments such as tenant buildouts, senior living, and horizontal infrastructure are gaining traction and presenting unique opportunities for continued growth and progress in the months ahead.

denver construction landscape
Denver, Colorado, USA downtown city skyline at night.

Refocusing on End-Users

As many speculative industrial projects continue to remain on pause, the sector has shifted its focus to build-to-suit prospects. Given the customized, tailored approach to these projects, they are more likely to attract both investors and developers who place their confidence in fulfilling end-user needs and creating spaces that support unique operational functions. 

Although the demand for speculative remains, it is predicted that these projects will remain in the pipeline until interest rates decrease and the market stabilizes. Until this shift occurs, tenant buildouts and build-to-suit projects will dominate the sector within the greater Denver region. 

Capitalizing on Senior Living Success 

Significant shifts have also impacted current trends in the living sector. Specifically, senior living projects remain on the rise, as predicted proformas and residential demand provide stakeholders with confidence in their investments.

An example of an active, large-scale senior living project is The Reserve at Lone Tree. With nine stories and 323,000 square feet, this expansive facility is set to bring an additional 208 senior living units to the community, including 25 memory care, 125 assisted living and 60 independent living, in addition to ample amenity space and a below-grade parking garage. The project is slated for completion in the first quarter of 2025. 

Diversifying Capabilities in Alternative Markets 

Given the change in demand for specific project types, Brinkmann Constructors has taken this change of pace as an opportunity to strengthen our presence in other growing sectors. We have made investments to increase our market share of medical, retail, and commercial-type projects. The demand for these project types in Denver is still strong and with our repeat client base, we have seen significant traction in procuring more work in these market sectors.

Regardless of the various challenges present in Denver’s construction environment, the outlook remains resilient, as stakeholders find new ways to grow while navigating economic uncertainties. With the second quarter underway, prioritizing a proactive approach to strategic planning, market analysis and risk management will help developers, investors and general contractors set the scene for continued success.

Leave a Reply

Your email address will not be published. Required fields are marked *