(Continued from page 5)
The following chart and table show apartment units proposed, and possible to start construction during the remain -
der of 2002 and into the first half of 2003, by county as of September 30, 2002:
Not all of the projects announced are necessarily guaranteed to start. Conversely, some projects not yet made pub -
lic may join the list of proposed communities this year. We believe, however, that it is highly likely that at least 3,000
to 3,500 of the proposed units will start during the next twelve months. Clearly, the balance between demand and
supply in metro Denver remains out of synch.
Even if the economy were to suddenly recover and once again generate high demand for apartments, the amount
of units coming on stream this year and next will likely cause the Denver apartment market to experience high va -
cancy rates for at least 12 to 18 months. With a strong economic recovery not likely to occur until at least 2003, the
softness in the Denver apartment market could remain until 2004. Differences will occur, of course, by submarket
and product type; even in a soft market opportunities will exist for the savvy developer.
Addenda following this report list apartment communities that were under construction or proposed in metro Denver
as of September 30, 2002. In addition, tables show which apartment communities had units completed or started
during the 3rd quarter of 2002.
While new apartment units came on stream during the 3rd quarter of 2002 in all seven metro Denver counties new properties
were started in only Adams, Arapahoe, Broomfield and Denver counties during the period.
Apartment Development Activity In Metro Denver
(continued)
Volume 1, 4
The Apartment Perspective
Apartment Units Proposed
Adams
18%
Denver
30%
Douglas
9%
Jefferson
10%
Arapahoe
31%
Boulder
2%
Broomfield
0%
County
Units
Adams
1,702
Arapahoe
2,892
Boulder
208
Broomfield
0
Denver
2,871
Douglas
902
Jefferson
933
Total
9,508
Page 6
James Real Estate Services, Inc.
