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Denver, CO | 2016 Top #CRE Markets to Watch: Office

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2016 Office Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Office Market to Watch: Denver, CO

Denver - top office market to watchDenver remains one of the most rock-solid metropolitan economies in the nation with 3.0% unemployment in January ‘16, according to the Bureau of Labor Statistics, while maintaining steady, slow growth that has total employment at record highs. The office market is equally steady with a relatively low level of vacancy and fair asking rents. This stability and growth should persist in 2016 for the office sector as key employment groups – Financial Activities, Professional and Business Services, and Information – are all showing strong-to-decent annualized growth of 3.9%, 3.2%, and 1.8%, respectively. Denver maintains a diversified set of economic base activities including aerospace, bioscience, and energy, just to name a few. As such, the office market is likely to withstand any negative impacts of global uncertainty and oil price declines for the foreseeable future.

Advisor Insights: SVN | Denver Commercial

SVN Advisors at SVN | Denver Commercial have some office market highlights to share:

  • Over 2 million square feet of newly delivered space is coming on the market, temporarily inflating vacancy rates.
  • Energy industry impact on office vacancy is significant as energy prices stay at their low prices. Sublet opportunities are up, and many energy company offices have closed completely. Vacancy rates have risen to mid-to-high teens.
  • Mixed use, co-work spaces continue to flourish, especially in the burgeoning CBD area. Conversion and re-purposing of old warehouses and factories is prevalent in the market.
  • Denver is creating jobs, with over 45,000 new positions in the last twelve months. Demand for office should rise concurrently with the job creation trend. Denver has become a desirable 18 hour city that attracts top talent in many industries.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top office markets, download the full version of the 2016 Office Market Outlook report here.

2016 Office Market Outlook

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Denver, CO | 2016 Top #CRE Markets to Watch: Multifamily

SVNIC’s 2016 Market Outlook Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2016. Today we are delving into the 2016 Top Multifamily Markets to Watch. Not the largest or the most actively contested markets, the 2016 Multifamily Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Multifamily Market to Watch: Denver, CO

Denver - top multifamily market to watchThe Denver multifamily market has experienced significant additions of new supply as its population has grown 10.6% from 2010 to 2014, according to the Census Bureau. Further, the employment market is outstanding with 3.0% unemployment as of January ‘16 and annualized job growth of 2.5%, according to the Bureau of Labor Statistics. Denver features a larger renter population with approximately 50% of its metro’s housing units used for rental purposes; still rental rates are relatively affordable for a metro of its size, giving it room to grow. Top sectors for employment growth include Leisure and Hospitality, Financial Activities, Manufacturing, and Professional and Business Services growing at annualized rates of 6.0%, 3.9%, 3.5%, and 3.2%, respectively. As such, rent growth could hit 7% in 2016.

Advisor Insights: SVN | Denver Commercial

SVN’s Advisors at SVN | Denver Commercial have some multifamily market highlights to share. Here’s what to look out for in Denver’s multifamily market in 2016:

  • As population grows, (over 100,000 additional people since 2014), demand grows likewise for multifamily.
  • Household formation is growing with a younger demographic makeup in Denver. The CBD area alone now is housing a population of 90,000 residents, mostly in multifamily buildings.
  • Rents have risen significantly over the past few years but are now reaching affordability limits.
  • Renters are demanding fully amenitized properties when higher rents are asked by landlords.
  • Expect to see more micro-apartments to address affordability issues, especially in the CBD area.
  • Vacancy rates are now approaching more “normalized” conditions of 5-7%, versus virtually nil in the last couple years. This is due to increased delivery of new apartment units to the region, somewhat outpacing demand.

Stay Updated…

Over the next few weeks, the SVN Blog will be featuring posts that will focus on each of the top markets to watch for industrial, multifamily, office, and retail properties. SVN Advisors from selected top markets have provided their industry expertise regarding what to look out for in their specific market in the coming months. Don’t miss out on these important insights – subscribe to the SVN Blog on the right side of the blog homepage.

To read more on other top multifamily markets, download the full version of the 2016 Multifamily Market Outlook report here.

2016 Multifamily Market Outlook

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SVN Specialty Awards: Team Player – Steve Kawulok

Recognizing the SVN Difference with Specialty Awards

Team126If you read my recent blog post about the SVN Annual Conference highlights, you know that the SVN Specialty Awards recognize members of the SVN community who have distinguished themselves in 2015 by making significant impacts on the commercial real estate industry and beyond. The awards – which included Team Player of the Year, Ambassador of the Year, Collaborator of the Year, Trainer of the Year, Humanitarian of the Year, Prospector of the Year, Innovator of the Year, and Firm of the Year – looked beyond production results and instead focused on culture. The winners of this year’s SVN Specialty Awards each embody traits that the SVN culture values immensely: practicing collaboration, cooperation and conscious capitalism while excelling in commercial real estate.

SVN Team Player of the Year 2015 – Steve Kawulok

Steve Kawulok - SVN Specialty AwardsSteve Kawulok, Managing Director of SVN | Denver Commercial has been with SVN since 2007 and under his direction, the Fort Collins office has been a top performing office for as long as we can remember. However, the fact that there were a number of nominations for Steve that came from around the country is a testament to his ability to be a true SVN Team Player. This year, Steve took it to another level when he was instrumental in building the SVN presence in Denver. To a quote one of the nominations that came in:

“His unique strong – yet soft-spoken – style made him the perfect candidate to blend the multiple Colorado offices and work together with the leaders from the Chicago SVN office to establish a regional presence in the Denver metro area. He is a real team player.”


The SVN blog will be featuring one SVN Specialty Award winner every week for the next few weeks. Stay up to date with SVN and CRE industry news.

Denver, CO | 2015 Top #CRE Markets to Watch: Industrial

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Industrial Markets to Watch. Not the largest or the most actively contested markets, the 2015 Industrial Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Industrial Market to Watch: Denver, CO

Denver: 2015 Industrial Markets to WatchThe Denver industrial market is reaping the dividends of the state’s move to legalize marijuana production. Demand for space in Denver itself, where production is permitted, pushed the vacancy rate below 3% in late 2014, the lowest level on record. The surge in demand amounts to a positive shock of between 3.5 and 5 million square feet, according to different sources. Developers are responding slowly, with roughly 1 million square feet of space currently under development. That imbalance augurs continued strength in rent gains; the sector’s greater liquidity, borne out by higher transaction volumes, suggests resilience in asset values once interest rates begin their upward hike.

In spite of its visibility, marijuana production represents a tiny fraction of industrial space leases in the Denver area. The strength of the local economy — the unemployment rate is below 4% as of early 2015 — is supporting demand across light manufacturing, distribution and logistics, and warehousing. Investors will find the market’s rosy outlook commands a high price. Cap rates in Denver declined to an average of 5.7% in 2014 across property sales and refinancing activity, lower than some coastal gateways including Washington, DC and Boston.

To read more on Denver and other top industrial markets, download the full version of the 2015 Industrial Market Update report here.

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It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Denver, CO | 2015 Top #CRE Markets to Watch: Office

Sperry Van Ness International Corporation’s (SVNIC) 2015 Market Update Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2015. Today we are delving into the 2015 Top Office Markets to Watch. Not the largest or the most actively contested markets, the 2015 Office Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

Top Office Market to Watch: Denver, CO

Denver: 2015 Office Markets to WatchFor both employers and high-skilled workers, few markets exert the same pull as Denver. The convergence of low costs of living, appealing amenities, and a business-friendly environment has allowed Denver to expand over time beyond its historical base in the energy sector. While business migration to the urban core has dominated activity and pushed the submarket vacancy rate below 10%, not every firm is headed to the CBD. In particular, some technology companies are eschewing the central business district for more flexible, open floor-plan spaces in the Lower Downtown (LoDo) and South Denver neighborhoods. LoDo is home to a disproportionate share of current office construction, though new inventory has yet to weigh on rent trends. Across the metro area, development activity is roughly 2% of in-place inventory – limited, when compared to the surge in projects underway in markets like Houston and Dallas.

While better diversified than smaller energy markets, Denver is still exposed to the vagaries of oil industry booms and busts. With about 20% of Denver’s CBD occupied by oil and gas companies, there was some worry in early 2015 that slumping oil prices could lead to instability in the office market. Most market observers agree that this will only become a major issue for Denver’s long-term outlook if a prolonged period of depressed oil prices leads to significant restructuring in the industry.

To read more on Denver and other top office markets, download the full version of the 2015 Office Market Update report here.

2015 Office Market Outlook

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisors with more than 180 locations in 200 markets.

Denver, CO | 2014 Top CRE Markets to Watch : Apartment

Sperry Van Ness International Corporation’s (SVNIC) 2014 Top Markets to Watch Reports assess the current state of the national commercial real estate market, and identify micro-trends within specific geographic regions and industries for 2014. Today we are delving into the 2014 Top Apartment Markets to Watch. Not the largest, or the most actively contested markets, the 2014 Apartment Markets to Watch are each at an important juncture that presents unique opportunities for investment. Together, they reflect the diversity of trends that is driving the economy and commercial real estate performance in markets across the country.

TOP APARTMENT MARKET TO WATCH : Denver, Colorado

denver-69207_1280Denver will add nearly 50,000 jobs in 2014, with much of the growth occurring in high-paying energy, financial services, health care and bioscience industries. Employment growth of almost 4 percent in 2013 and a similar gain expected this year make Denver one of the nation’s fastest-growing job markets. Multifamily rent grew at a remarkable 6 percent in 2013. The addition of 10,000 new units this year will expand the apartment inventory by more than 3 percent, however, enough to slow annual rent growth to a more modest 4 percent. Nearly half of the apartments under construction are in the central business district, where the renovated Union Station is set to open later this year. Existing and planned light rail lines offer development opportunities, as well as value-add plays for investors able to upgrade and reposition existing, older properties in these growth corridors.

To read more on Denver, and other top multifamily markets, download the full version of the Top Apartment Markets to Watch report below.

It’s a different world out there.

It requires a different kind of commercial real estate firm working on your behalf in order to be successful. The Lipsey Company has ranked the Sperry Van Ness® organization as one of the most recognized commercial real estate brands in the US for a reason—we know how to deliver a certainty of execution for our clients. Sperry Van Ness International Corporation is one of the largest commercial real estate franchisers with more than 180 locations in 200 markets.

Download the Top Trends and Markets to Watch Reports

Chandan-Apartment-CoverApartment Trends and Markets to Watch
Office Trends and Markets to Watch
Industrial Trends and Markets to Watch
Retail Trends and Markets to Watch
Commercial Real Estate Trends and Markets to Watch