JAMES REAL ESTATE SERVICES, INC.
DENVER METROPOLITAN AREA
REAL ESTATE MARKET CONDITIONS
Fourth Quarter 2000
Denise K. Moore
Timothy J. Jirles
William M. James, MAI
Denver continues to be well positioned as a competitor for real estate investment dollars. All
market segments have experienced steadily increasing absorption and rents and solid value increases.
Additionally, while growth is high, Denver seems prepared for smart growth, as compared to the excesses
of the 1980s. Colorado's improved economic diversification, coupled with its favorable business climate,
continues to attract corporate relocations in spite of rising sales prices and rents.
With economic conditions in Denver among the healthiest in the nation, the outlook for Denver's
real estate market is excellent as long as lending restrictions for new development stay in place. All market
sectors have firmed to the point that limited speculative construction has begun.
The recovery is generally expected to continue without excess new construction since underwriting
for financing of speculative projects remains conservative. As a result, a demand driven development
industry has become the norm. This nationwide reaction to the overbuilding of the 1980s is providing
needed regulation to the supply side of the development industry.
Expected population, employment, and personal income growth have already positively impacted
most property types. Although economic sluggishness or recession could produce interruptions,
employment opportunities continue to grow from both public and private projects. Denver has benefited
from an influx of high-level professionals from the east and west coasts and from the development of
Denver International Airport (DIA).
Residential building has continued to react to strong demand. Retail, industrial, and office
development and land sales are all very active.