Two Words To Describe Denver Apartments: More Amenities
Denver's apartment market is strong with pockets of concern in certain markets, speakers said at our recent Multifamily & Mixed-Use Forum at the Four Seasons Denver. But that doesn't mean owners and developers can skimp on amenities. Just the opposite: everyone wants more.
There's an amenities “arms race” going on in the Denver market, our speakers said. Properties are going all-out to stand out from the crowd. The market's tight, and more expensive than it used to be, but that doesn't mean tenants—especially Millennials—will live just anywhere. New properties are offering the most amenity space ever programmed into Denver communities.
Health-oriented amenities are especially popular. The stakes are higher than ever when it comes to delivering a relevant and robust fitness center, and properties can leverage convenience and community in a more organic way than a commercial health club operator. “Developers are in a stronger position in respect to the business of fitness than they might realize," noted one of the speakers.
Nearly 85% of Americans don't maintain a health club membership, the speakers said. The opportunity to establish a viable exercise offering on site has a measurable value that can justify a premium in rental rate.
Also at the cutting edge of health-oriented offerings: Certified Healthy properties under the Urban Land Institute’s Building Healthy Places Initiative. West Line Flats will be one of the first apartment communities in the Denver area to win the distinction.
In terms of overall demand for Denver apartments, our speakers said Millennials are still delaying homeownership, and Baby Boomers are downsizing as their children move out. This barbell effect has created demand for Class-A infill product in desirable markets. The main concern is rising rents will leave people unable to afford the apartments coming online.
Also speaking at the event were BMC Investments CEO Matthew Joblon; Walker & Dunlop SVP Ralph Lowen; Hunt Mortgage Group VP Penny Newton; KeyBank SVP Charlie Williams; and Ballard Spahr partner Joseph Lubinski, who also moderated.