Denver Real Estate Blog

Vacancies tightened to 6.1 percent in the fourth quarter, from 7 percent for 2006’s final period, the report said. But the fourth-quarter vacancy rate was up from 5.3 percent in last year’s third period. Apartment vacancies were down and rents were up in the last year’s fourth quarter, compared to 2006’s final period.

Tenants are paying more effective rent, and landlords are collecting higher rents. Concessions are the lowest they’ve been in five years because many concessions have all but been used up, according to Jerry Kendall, vice president at Countrywide Commercial Real Estate Finance in Greenwood Village.

The final quarter vacancy rate for 2007 is the lowest for that period since 2001. Boulder and Broomfield counties had the lowest vacancy rate for the period at 5.4 percent, while Adams County had the highest at 7.4 percent.

“Overall economic vacancy is 16.6 percent, the lowest it’s been since the second quarter of 2002,” said Gordon Von Stroh, professor at the University of Denver’s Daniels College of Business and author of the apartment report.

Economic vacancy is the vacancy rate plus concessions and discounts as a percentage of gross potential rent. Apartment owners generally care more about economic vacancy than market vacancy, since properties shown as 100 percent occupied in a market survey still can have economic vacancies such as model and manager units not considered by the market survey.

Fourth-quarter rents ranged from a high of $1,043.09 on average in Douglas County to a low of $813.83 in Arapahoe County.

Sales of apartment properties in 2007 of dropped 18 percent to $1.8 billion from 2006, because of difficulties with capital markets late last year, according to apartment broker Steve Rahe at CB Richard Ellis Inc. in Denver. But investors continue to like local apartment properties.

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Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.

Jeffery has been a licensed Realtor since 1995. During this time he has successfully closed over 135 million dollars of residential real estate, and 40 million dollars in un-improved land amounting to 660 individual real estate transactions. His professional experience includes the Denver Colorado front range and the Second Home market in Breckenridge, Colorado located in Summit County.