Colorado Real Estate Journal - June 15, 2016
New residents are moving to Downtown Denver and its surrounding neighborhoods in record numbers. Downtown Denver’s core residential population is projected to grow from 19,854 by 13% in the next five years and Downtown’s City Center neighborhoods are projected to grow from 75,972 by 10%. In the core of Downtown there has been a 179% increase in residents since 2000. The City of Denver is one of the fastest growing cities in the U.S. with 682,545 residents which is 13% increase since 2011. Downtown Denver’s residential real estate market reflects this strong population growth. As of May 2016, over 4,592 residential units were under construction or planned in Downtown Denver and its City Center neighborhoods. Apartment vacancy rates continue to remain low at 7.5% and the overall residential real estate market is surging. New rental projects are being developed throughout Downtown and range in scale from smaller infill developments in Capitol Hill like the 105 unit, 7-story, 7/S Denver Haus apartment project to mid-rise towers like the planned Alexan Arapahoe Square, a 13-story, 355-unit development. A unique aspect of the current residential development cycle for Downtown is the delivery of the first high rise apartment towers to be built in the core in decades. One of the first of these towers, Platform at Union Station, recently completed construction and is a 21-story, 290 unit apartment community in the burgeoning Union Station neighborhood. Another tower is Skyhouse Denver, a 25-story, 354-unit apartment project that is being constructed on a site in the Central Business District at the intersection of 18th & Broadway. The tallest rental project in Downtown’s history will be The Confluence, which is a 34 story, 288-unit tower that is currently under construction and is scheduled for completion in early 2017. A new 19-story condominium project, The Coloradan, plans to break ground later this year and will deliver 342 for-sale units when it is complete. These new towers will set the stage for the next chapter in Downtown’s residential market evolution that will offer increased density on smaller sites allowing future residents even better access to all of the amenities that are attracting people to live in urban spaces. New amenities continue to enhance the quality of life for Downtown Denver residents and will spur the future development of additional residential projects. The Downtown Denver Expeditionary School (DDES) welcomed it first students in grades K-5 and opened in its permanent home at 1860 Lincoln in April of 2014 and is now seeing record enrollment. Development of a Downtown Middle School is underway that will provide another educational option for new residents and their families. A full service urban format 46,000 SF King Soopers grocery store opened at 19th & Chestnut as part of the Elan at Union Station project that is adjacent to Denver Union Station in September of 2015. Whole Foods Market is constructing a 56,000 SF flagship store that will serve as the retail anchor for the 580-unit apartment Pivot project which is scheduled to open in 2017 and will provide another grocery option for consumers in that quickly emerging neighborhood.