CREJ

32 / 36

Page 32 — Multifamily Properties Quarterly — November 2017
PRIME MULTI-FAMILY OR MIXED USE DOWNTOWN FORT COLLINS SITE
SWC OF MASON STREET & CHERRY STREET, FORT COLLINS, COLORADO
Lee Martinez Park
Old Town
Square
Colorado State University Campus
COLLEGE AVENUE
GROUND LEASE, BUILD-TO-SUIT, OR JOINT
VENTURE DEVELOPMENT OPPORTUNITY
MAX Transit
Center
JEFFERSON STREET
Fort Collins
Museum of Discovery
LINDEN STREET
CHERRY STREET
N Poudre River Trail System
Elizabeth
Hotel Larimer County
Government Offices
SITE
The Lincoln Center
Northside Aztlan
Recreation Community
Center
Otterbox Headquarters
Representatives:
Jake Hallauer, CCIM
970-305-8113
Chrisland Real Estate Companies
Phone: 970-663-3150
Ryan Schaefer
970-295-4819
• Less than 1 block from the MAX Transit Center
• Walking distance to popular Old Town Square
• Adjacent to Lee Martinez Park and Fort Collins
Museum of Discovery
• Surrounded by an abundance of retailers,
restaurants and entertainment
• Within 1mile of Colorado State University’s campus
environmental site assessments
and more, discourage housing con-
struction and raise the cost of those
apartment communities that do get
built.
In addition to the research, NMHC
and NAA also released a report called
Our Vision 2030, a set of recommen-
dations for policymakers at all levels
of government on how to increase
housing production and lower its
cost.
The report notes the toolbox of
approaches states and localities
can take to address the apartment
shortage and help reduce the cost of
housing. First and foremost, they can
adopt local public policies and pro-
grams that harness the power of the
private sector to make housing afford-
ability more feasible. Some of the
options explored in the report are:
• Establish “by-right” housing devel-
opment;
• Expedite approval for affordably
priced apartments;
• Reduce parking requirements;
• Establish density bonuses to
encourage affordable housing devel-
opment;
• Adopt separate rehabilitation
codes;
• Counteract not-in-my-backyard
movements, commonly referred
to as NIMBYism, with an efficient
public-engagement process;
• Leverage underutilized land; and
• Waive fees for properties with
affordable units.
• Unleashing economic potential.
What’s good for renters is good for
everyone. A shortage of affordable
housing is a drag on local econo-
mies. Moreover, the new apartment
construction Denver needs will
boost the economy in the coming
years.
The combined direct and indirect
contribution of 100 existing apart-
ments in Denver, including the local
spending of those renters, is $3.8
million and 38 jobs supported. This
is not just a problem for today. By
2030, the affordable housing cri-
sis will become even more severe
unless public and private sector
leaders take bold, innovative action.
The future apartment demand
research and Our Vision 2030 are
Apartment Community Estimator –
or ACE – a tool that allows users to
determine the economic impact of
a given number of apartment units
in 50 metro areas.▲
Duty
ods averaged less than 39 months. Post-
WWII expansions, including the current
one, have averaged almost 62 months.
Starting with the creation of the Federal
Reserve in 1913, and continuing in 1933
when it went off the gold standard to
completely cutting ties to gold in 1971,
we’ve been able to hone our economic
skills and sharpen our tools, constantly
breaking new ground and learning from
our mistakes.
Another thing to point out in the chart
is the average gross domestic product
growth during these periods. Most
economists agree that ideal GDP growth
rate is between 2 and 3 percent. Have
we finally landed in that sweet spot
where we can expect continued steady
growth? Look carefully at the last four
periods of expansion. If we hadn’t acted
so foolishly leading up to the financial
crisis, could that expansion have lasted
longer than the one prior?Who knows,
but it sure taught us some valuable les-
sons, and that’s the ’ll continue
to improve in managing the booms and
busts that have plagued the past.
During this cycle, Japan and the Euro-
zone have flip-flopped between con-
traction and expansion.With these two
major economies now finally in simul-
taneous expansion along with the U.S.,
we’re just beginning to enter a period
of synchronized global growth.The
economy at home and abroad appear to
be in decent shape, suggesting business
as usual. Of course, there are always
curveballs, but there’s no cure for those.
In the movie “Major League”, Pedro Cer-
rano tried to get Jobu to help him hit
curve balls by offering cigars and rum
… that just doesn’t make any sense.
There’s no reason for us to start doing
the same.
Each part of the current cycle has
been prolonged, starting with the slow
recovery of credit after the crisis. From
there, we’ve gradually expanded lever-
age, and now the Fed is gradually hiking
’ve yet to enter the next phases
of rising default rates or an overheated
economy; in assessing the current situa-
tion and nature of this cycle, there’s rea-
son to believe those next phases will be
prolonged as well, allowing everyone to
continue sitting on fastballs in the strike
zone.What we’re really saying is this
cycle still has a lot of room to run. ▲
Hodge
percent of all workers in the region.
The current positive trajectory with
new jobs in high-skill sectors alongside
the statewide in-migration of highly
educated people implies that the past
reliance on the military is dwindling.
• Average apartment vacancy: 4 percent.
The bottom-line message from the Q3
Apartment Insights vacancy survey is
local rental market stability. The city-
wide average vacancy rate for Colorado
Springs has been consistently within
1 percent above or below the current
vacancy rate for over two years.
• Average apartment rents: $1,020 per
month. Colorado Springs apartments
are achieving the highest-rent growth
of any Front Range metro area. Rents
are growing at a highly consistent rate
of between 6 and 9 percent annually
since 2014. The current rent reflects
a $1.25 per square foot average. Note,
the average apartment rents in Denver
have increased $700 per month – or
doubled – since 2004. Colorado Springs
average rents are up only $400 per
month during the same period and still
have room to rise.
• New development: 2,500 units. Colo-
rado Springs has 2,500 apartment units
under construction with 2,600 units
planned. This compares to Denver’s
30,000 apartment units under con-
struction with another 25,000 units
planned.
Colorado Springs was late to the
party with economic recovery and
rent growth. This may prove to insu-
late Colorado Springs from the over
construction that some first-tier cities
are experiencing that can result in the
painful burst of a bubble. ▲
Bailey