Multifamily Off To A Good Start

Despite negative absorption in units for the first quarter, Denver is in for a big 2021. Since the beginning of the new year (building off the high concentration of company relocations from last year), three companies within different industries have announced their relocation or expansion into Denver. Those companies are: MotoRefi, AgriWebb, and Kleos Space S.A. More than 20,000 units are currently under construction with an additional 16,500 in the development pipeline. Denver has proved to be a resilient city throughout the COVID-19 pandemic, demonstrating people want to live and work in the region. Average rents continue to rebound as expected with surging demand rounding off at $1,587/per unit. Vacancy continues to trickle up slightly at 5.8% as a result of more than 1,100 units delivering in the quarter. Investment activity kicked off to a solid start and is expected to pick up as we push forward into the warmer months.