Transit-Oriented Development Takes off in Denver, Boosting Supply
“The Mile-High City finds itself in the midst of continued urban revitalization via transit-oriented development. At the center is the redevelopment of Union Station, which is seeing new infrastructure and the prospect of “work-play communities” surrounding it.
According to Marcus & Millichap, this year will see the completion of a 12.1 mile West Rail Line connecting Denver’s city center to Lakewood, Golden, and Jefferson County—already spurring new multifamily construction and fueling investor confidence in the area. Overall, the amount of new supply in the market is expected to jump 10 percent—a staggering figure underlining the city’s strong fundamentals.
Indeed, while vacancies continue to hover within the 4 percent range, asking rents have been rising steadily since 2011 and are expected to rise another 4.6 percent in 2013 to $974 per month. Meanwhile, effective rents will see a slightly steeper increase of 5.1 percent to $888 per month. Marcus & Millichap notes that high demand resulting from expanded employment will keep rents rising even with the surge in supply.”
Shea, Phillip. Multihousing News 14 March 2013.