Denver real estate has been in overdrive for a long cycle, and so there is a case to be made for caution, but not too much caution. With its steady increase in population and jobs, the market still offers opportunities to developers and investors.
Perhaps the industry needs to be more attuned to niche plays.
"While we're certainly at a more cautionary phase in our market cycle, I believe Denver has achieved breakaway from the typical boom-and-bust pattern the market has historically endured," Confluent Development chief development officer Celeste Tanner said.
"While certain investments, such as multifamily and office, are at or past peak, our rapid and spreading population growth may foster opportunities for niche development in these products. Industrial and for-sale multifamily remain in high demand in several submarkets, and continue to create opportunity for new development, with a mindful eye on affordability, given continued cost escalation."
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Confluent recently completed one such niche play, starting early this year: Mikron Automation expanded its U.S. HQ in Arapahoe County, which is part of the Dove Valley Business Park.
The company, which is the American arm of the Switzerland-based Mikron Group, a maker of customized automation products, tasked Confluent to add 19K SF to the existing facility, to make a total of 72K SF. Confluent developed the original facility, which is specialized industrial space focused on assembly and testing, for the company in 2015. Open Studio Architecture did the design of the expansion.
Find out more about the direction of Denver real estate at our Denver State of the Market event June 13 at the Denver Marriott City Center.
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