However, construction activity slowed to a crawl in the months following the Sept. 11 terrorist attacks in 2001, so the increase was expected.
Chuck Sweeney, a veteran apartment broker with Hendricks & Partners, says he would like to see apartment permit activity slow even more.
"The problem has been there is virtually no entitled ground for multifamily development in the Denver area," Sweeney tells GlobeSt.com. "It takes 1.5 to two years to get the ground entitled. And once a developer get the equity commitment to build a property, he is determined to build that project."
Not only are apartments facing lower demand because of the economy, many existing tenants are taking advantage of mortgage rates near a 40-year low and buying homes, he notes.
That is causing multifamily owners to offer the type of concessions and deals they hadn't offered for about 15 years.
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