Is Denver Industrial House Moving Back?

Is Colorado Commercial Property Jumping Back?

Denver is one of three towns in the region to be bucking the sluggish commercial real estate market development if original amounts are to be assumed. Minneapolis, denver and Dallas all posted positive numbers this quarter, up almost 50 percent higher than average.

Minneapolis found the greatest gains with 127 percentage dollar increase in corporate property income, Dallas had 108 percentage, and our own Denver, 89 percent. That is compared to a national average of 47 percent dollar volume investment in commercial real estate total.

It seems traders are slowly starting to accept risk once more. The real property market is tried and true, and certainly capable of producing more than capital or bond markets. Several income men are coming back to mortar and good old stones and recalling this.

Some of the notable purchases in Denver commercial and corporate property real estate have been substantial. For example, Invesco Ltd. of Atlanta obtained a 22-story Denver structure for $213 million in February. This was the highest price paid for an office building in our city's history.

Last year kbs Real Estate Investment Trust II ordered Granite Tower, a 31-story downtown property, in December 2010 for 9 million, the largest office purchase in the town. The building is now almost completely booked.

The improved prospects of the area make it attractive to people. The increase in people and job potential makes Denver a worthwhile risk. With the possibility of more employers coming to a sunnier view, and the town overall, the Mile High City appears to be over the worst of the economic issues for now.

The green shoots of recovery have been developing in the commercial real estate industry as well as the Denver corporate housing market while we certainly wouldn't say the recession is around. Purchases are up, demand is increasing, and rents have increased slightly over last year.

The people is also increasing, rising 8.2 percent from 2000 to 2010, relating to the U.S. Census Bureau. Concept of Denver's ability to weather the storm has obviously gotten out and new people as well as businesses are gradually appearing.

In than they did last year the bigger picture, Wall Street has sold more home bonds this year. Last year saw a rise of nearly 45 percent in the purchase of property-related bonds, nearly $119 million worth. With the uptake of commercial real estate and corporate property, this total is believed to improve again over this year.

The Denver corporate rentals market is also going to increase through 2012 as more businesses appear to up and coming cities to base their operations. They need structure, stability and expansion, all things that Denver presents in spades.

Although there's still some way to move, the Denver property industry is making its way gradually into the light. We're well placed to attract new companies, new investment, new corporate property developments and new people in equal measure over the coming years.