DENVER—“We get calls at least oncea week from a new investor who wants to get into this market.” Sosays Terrance Hunt, executive managing director ofARA Newmark. All the things you've heard ofDenver over the years…the views, the climate, thein-migration…all come home to roost in the Mile High City'smultifamily market. Even the bad news—yes, there'sbad news in Denver as well—such as the increasing cost ofhomeownership, feed into the renters' lifestyle. We'll explore allof these factors in this, the third in our series on the Denvermarket.

“The first time that Denver sold a building for more than$100,000 a unit was 2001,” Hunt continues. “We sold three in excessof $300,000 last year.” And he expects the trend to continue sincethe core market—which in Denver means Downtown/LoDo—is alreadyseeing deals over $300,000 a unit.

So what specifically is driving the demand? It's clearly morethan the pretty views. “Basically we've got a vibrant market,” saysShane Ozment, an ARA Newmark executive managingdirector. “Yes, we're a great destination city for people who wantto live here. Jobs are also being created and companies want tomove here as well. So we have good job growth andin-migration.”

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John Salustri

John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.