Apartment Development Activity In Metro Denver
Volume 1, 4
The Apartment Perspective
As of September 30, 2002, a total of 9,678 units were under construction in metro Denver and 9,508 units were pro-
posed. The amount of new construction was fairly well distributed throughout the metropolitan area, led by Denver,
Arapahoe, Douglas and Adams counties. Only Boulder, Broomfield and Jefferson counties had less than 500 units
under construction in their respective jurisdictions.
The number of units under construction is well above Denver's "normal" annual net absorption. With demand affected
by recession, it is doubtful that the apartment market will be able to easily absorb even half the number of units likely
to come on stream this year. To make matters more challenging, over 9,000 additional units are proposed and at
least a third of those are highly likely to begin construction in 2002 and 2003. While previously leading counties of
Arapahoe, Adams, and Douglas remain near the top of the list for proposed projects, Denver County has moved to
second place, reflecting the number of new projects proposed in the downtown and central Denver submarkets. The
following chart and table show apartment units under construction by county as of September 30, 2002:
(Continued on page 6)
Apartment Units Under Construction
Boulder
2%
Douglas
19%
Denver
28%
Broomfield
7%
Arapahoe
23%
Adams
18%
Jefferson
3%
County
Units
Adams
1,788
Arapahoe
2,239
Boulder
172
Broomfield
704
Denver
2,567
Douglas
1,887
Jefferson
321
Total
9,678
Page 5
James Real Estate Services, Inc.
The Metro Denver Apartment Market
(continued)
(Continued from page 4)
counted in these averages is the increasing affect of special deals, reduced or eliminated security deposits and other
concessions meant to retain or attract residents.
The average monthly rental rate for the 3rd quarter of 2002 was $808, down from $827 during the same period one
year ago. The average rental rate for all of 2001 was $818. Rental rates are usually quoted with water and sewer
costs included but with the tenant paying for electricity and natural gas.
