Low Vacancy + Increasing Rents = Buying Opportunity

The University of Denver's Gordon Van Stroh recently released his 3rd Qtr report on Denver Metro's 1-4 Unit Residential Income Properties. Below is some very interesting data that I wanted to share with the Trulia community and prospective real estate investors in Denver.

For the 3rd Quarter 2010, Average Vacancy for the metro Denver area fell to an incredibly low 2.9%. A healthy market is considered to fall in the realm of 5-10%. That is down from 3.8% in the 2nd Quarter of 2010 and down from 4.6% in the 3rd Quarter of 2009.

Not surprisingly due to the demand in the market creating the low vacancy, average rents responded and increased to $1,041.05 per unit in the 3rd Quarter 2010. That is up from $1,027.78 in the 2nd Quarter of 2010.

What does this mean? It means now is the time to buy residential income property in Denver. Couple that with the low interest rates in today's market place and you have a golden opportunity to lock in low expenses for a 5-10 year hold. AND if you believe inflation is just around the corner, this is even a greater opportunity. Lock in a low rate and fixed cost now, and ride the inflation wave to come with increaing rents that will even more greatly impact your rental property profits.

Here are some detailed statistics by Country for the 3rd Quarter 2010 for 1-4 Unit Residential Income Properties:


3rd Quarter 2010 Average Vacancy by County:
Adams - 3.4%
Arapahoe - 3.1%
Boulder/Broomfield - 1.4%
Denver - 3.2%
Douglas - 5.2%
Jefferson - 1.8%

3rd Quarter 2010 Average Rental Rate by County:
Adams - $1,121.34
Arapahoe - $1,015.71
Boulder/Broomfield - $1,635.90
Denver - $969.37
Douglas - $1,404.44
Jefferson - $981.09

South Broadway... Denver's Hidden Gem

Locals know the spot, but for those unfamiliar with area, the South Broadway commercial corridor just outside of downtown Denver offers a plethora of fun & unique entertainment and food options. And the neighborhood is about to gain another one: The Punch Bowl.

The Punch Bowl is taking over the vacated Big Lots store at the intersection of S. Broadway & 1st Ave. That corner already has the recently opened "El Diablo" which offers 'rustic' Mexcian fare and exquisite tequila selection. I have been a couple of times and will be looking forward to a visit back. Sketch Wine Bar next door is another recent addition. I have never been, but friends who live in the neighborhood tell me it's great and it looks that way from the outside.

Then there are the mainstays of South Broadway...
- The Mayan Theater. Great place to catch an Indie film.
- The Hornet. Neighborhood bar that has been there as long as I have been in Denver. Heads up: bring your Mayan Ticket stub in for a FREE beer!
- Hi Dive. Great little live music venue. Keep an eye out here for up & coming bands.
- Skylark Lounge. Changed locations a few years ago, but is the Rock-a-billy bar of Denver.

And the in-between's... these places don't have the history of Mayan etc, but aren't brand spanking new either. However, I did save the best for last and highly recommend checking these out:

- Deluxe. Without question one of the Top 5 Restaurants in Denver. Don't believe me, go check it out yourself. Recommend a reservation. It's not big.
- Beatrice & Woodsley. The interior design is worth the visit alone. Great for a pre or post dinner or movie drink and an awesome date spot. Beware, this is a tapas place and you will not get a lot of bang for the buck in food. It's good, but not a lot of it and a bit pricey.

And don't forget the Real Estate!!! The Historic Baker & West Wash Park neighborhoods flanking this dynamic commercial area is a fantastic place to live, buy and invest in. Feel free to contact me for more details.