The real estate market in Colorado has been pretty optimistic of late. Since the legalization of weed for recreational use, in particular, cannabis cultivators renting property have encountered rising prices in apartment warehouses. This signals the potential of Denver’s real estate market. According to Forbes, Denver has become the number one place for businesses and careers to flourish.
A real estate lawyer in Denver, Colorado states that buying property can be the “most expensive single investment that most people ever make,” and this rings true for both residential and commercial properties. It will be to your advantage to do the appropriate research before you buy real estate.
What Makes Denver Such a Good Location for Investments?
Ashley Elkin, writing for the Colorado Real Estate Journal, says Denver offers a low entry barrier for real estate investors. A comparison of Denver’s recent sales figure with that of the other major players, such as New York City, Washington, D.C., Chicago, and San Francisco, shows the growing interest in the Mile-High City.
A square-foot in Denver hit a record-high selling price of $600 for IMA Financial’s building at Union Station. Yet, this is 70 percent lower than the highest office building sale price in the Big Apple, 40 percent lower than in SF and D.C., and 10 percent lower than in the Windy City. This price level is bringing attention to Denver. Foreign and domestic investors have begun to recognize Denver as a location where they can safely place their capital.
A Look at the Investment Figures
Since 2011, the total international capital invested in Denver has increased annually. Here are the figures during the past three years:
- 2013 – $230 million
- 2014 – $330 million
- 2015 – $420 million
As of June 2016, the office market investment in Denver has already reached $230 million. As a matter of fact, foreign investors from a variety of countries have taken an interest in the city. For the past year, 27 percent of Denver’s office building investments came from international real estate investors. Bahrain, South Korea, Hong Kong, Germany, Chile, Mexico, and Canada are just a few of the countries that see the potential of Denver’s real estate market.