top of page
Search

Take-Aways from CREJ Multi-Family and CRE Conferences August 2022


Published by: Diane Wolfson

Real Estate, Business and Litigation Attorney


I attended the late August 2022 Colorado Real Estate Journal conferences for multi-family and commercial real estate. Here are my take-aways.

Patty Silverstein (President & Chief Economist of Development Research Partners) tried to answer whether we are in a correction or recession. Five of seven indicators suggest correction. The two that suggest recession are inflation and GDP decreasing in Q1 and Q2 2022. Her belief is that these two are not necessarily reliable indicators of a recession due to the anomalies of the pandemic and Ukraine War, especially given such a tight labor market. She expects the Federal Reserve to hike rates at least three more times.

Despite an increase in leverage costs, and seeing properties priced at negative leverage, there are still buyers and money seeking deals in Colorado, including national and international investors. The most highly leveraged investors, however, are increasingly unable to compete as buyers.

Even with net migration to Colorado slowing, there was broad agreement among realtors and developers that the fundamentals in Colorado and along the front range continue to be strong.

Denver’s new affordable housing requirement led to a dizzying rush of multi-family applications. Fewer applications have been filed after June 30. This situation is expected to limit the multi-family pipeline in coming years because the new requirement means few projects pencil and prices have not adjusted.

From Colorado Springs to Fort Collins, there is a shortage of supply across every category of real estate and vacancy rates continue to be at historic lows. Rents in all categories continue to climb, though at a slower pace than last year.

For development, there is practically nothing available West of I-25. Supply in Fort Collins is tapped out. Loveland and Greeley/Weld County are the current hot markets.

Amenities rule in both multi-family and office. For industrial properties, availability of ample parking is most in demand.

These quarterly CREJ conferences are always interesting and are terrific networking opportunities. If you happen to have your real estate license, you get CLE credit. Visit www.CREJ.com.


Comentários


bottom of page