According to the Urban Land Institute's (ULI) survey "Emerging Trends in Real Estate", Denver commercial real estate is among the top ten markets to watch in 2011.
This positive forecast states that "Denver demonstrates 21st century growth by strengthing it's downtown core through a new light rail and railroad hub to serve surrounding suburbs". This transit oriented development will help to strengthen the commerical real estate market by expanding the housing and commercial market downtown and making real and easily accessible connections to the surrounding areas.
In the survey, respondents cite some "best investor bets for 2011 commercial real estate" as:
- Lock in Leverage - Mortgage rates can't get much lower, now is the time to invest.
- Favor in-fill over fringe - "move back" trends are gaining as 20 somethings want to experience a more vibrant urban area
- Buy Land - it won't get any cheaper that it is now, but be ready to wait for the right development opportunity
- Temper expectations - be sure to buy well leased core assets and look for 6 - 7% cash flow.
A complete copy (showing trends throughout the U.S.) of the ULI study is available at www.uli.org/emergingtrends