CREJ

A fter enjoying consecutive years as one of the hottest markets in the country for investment and corporate real estate relocations and expansions, it appears there is a sense of market maturity among local commercial real estate pro- fessionals. On a national scale, Denver has slipped in the popularity rankings, according to the 2020 Emerging Trends in Real Estate report co- authored by PwC and the Urban Land Institute. After placing in the top 10 in the previous two years, the Mile High City took a drastic tumble to No. 17 on PwC’s “Mar- kets to Watch” list. This year, Austin, Texas; Raleigh-Durham, North Carolina; Nashville, Ten- nessee; Charlotte, North Carolina; and Boston were ranked as the top five markets to watch, prompting locals to wonder what changed, and how can Den- ver regain its stance atop the menu of national commercial real estate markets? Market maturity is certainly on the minds of commercial real estate experts looking at the future of the market. Previously, the con- versation has revolved around sprawling population growth, influx of millennials, deep tal- ent pool and ambitious commit- ment to economic diversity. While Denver hasn’t exceeded all these expectations, it’s hard to ignore the implication that many of the current market constraints are a result of past success. Rising home prices, lack of office supply, congested roadways, spiking com- mercial property taxes and a high cost of doing business are among the issues that Denver legislators will be forced to combat in order to regain the attention of institutional investors and corporate expansion efforts. The elevated cost of doing busi- ness remains the biggest constraint for the Denver real estate com- munity. Following strong popula- tion growth outpacing the rate of new construction of single-family Please see Page 20 March 2020 INSIDE 2020 economic vision PAGE 4 Workplace trends PAGE 14 Market insights PAGE 12 Denver’s economic forecast for the real estate market, employment and consumer activity Open office design requires strategic implementation to avoid workspace clashes The technology sector is having an undeniable influence on creative office space Jared Balcavage Research analyst, Transwestern Keeping Denver on the menu Pixabay Denver slipped in the popularity rankings, according to the 2020 Emerging Trends in Real Estate report co-authored by PwC and the Urban Land Institute. After placing in the top 10 in the previous two years, the Mile High City took a drastic tumble to No. 17. A plan for smart, sustainable growth could help the city regain its standing.