2011 Market Outlook

2011 Market Outlook

2011 NAI Rank: 14, Up 7 Places. Tight vacancy and healthy employment gains helped push up Denver seven places in the 2011 ranking.
Employment Forecast: Denver payrolls will rise by 24,000 positions in 2011, a 2 percent gain. Growth resumed in 2010 after two years of contraction, with local employment expanding by 0.5 percent.
Construction Forecast: Only 800 units are slated for completion in 2011, down from 2,550 units last year.
Vacancy Forecast: Reduced construction and accelerating job growth will support an 80 basis point decrease in vacancy to 5 percent this year. During 2010, vacancy declined 220 basis points.
Rent Forecast: Asking rents will rise 3.1 percent in 2011 to $906 per month, while effective rents will climb 4.1 percent to $816 per month.
Investment Forecast: With investors focusing on distressed deals and high-quality performing assets, many Class B/C properties in secondary and tertiary locations could be overlooked. These complexes may present strong acquisition opportunities for buyers with longer-term hold strategies, as some owners with maturing debt will need to adjust prices in order to minimize marketing times.

Market Forecast Employment: 2.0% ▲ Construction: 1,750 ▼ Vacancy: 80 bps ▼ Effective Rents: 4.1% ▲

If you are interested in discussing on how to invest with your self directed IRA then email Bob Alexander at bob@mountaincapitalgroup.com.

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