Denver real estate update

September 29, 2009 by · Leave a Comment
Filed under: Colorado, Home Searches 

denver1In the heart of Colorado and as the life and blood of the state and its surrounding areas, Denver usually is the least affected when it comes to economic turmoil.  However, the nationwide economic recession has hit the city hard and Denver real estate has been left in shambles with hopes of a speedy recovery. As the economic downturn begins to level out and people begin regaining their spending power, most analysts believe that house purchases will begin to rise and the rate of foreclosures will return to pre-recession levels.

Aldo Svaldi and Jason Belvins’ September 16, 2009, article in the Denver Post claimed that the recession’s end would not calm the troubled waters.  According to the article, although “Federal Reserve Chairman Ben Bernanke said that the U.S. recession is very likely over,” many people aren’t so sure.  Denver was once a leader over several other similarly-sized cities in terms of income and employment growth but has since “slipped to 34th out of the 100 largest cities in terms of its economic performance.”  Michael Orlando, an economics and expert in Denver homes for sale, agreed with Bernanke’s assessment and believes that the housing crisis has “firmly bottomed out.”  Orlando cautioned, however, that while the economy might slowly be picking up, it won’t return to pre-recession levels.

While residential real estate in Denver might be beginning to mend, the commercial property side may not be doing so well, reported the Associated Press in an article published September 11, 2009 in the New York Times.  The article mentions a brand-new eighteen-story office complex that is almost completed and that upon opening will not have a single square foot of its 400,000 square feet occupied by a tenant.  This is just the least of Denver’s problems.  With businesses slashing their work force and scaling down operations, the article claims that the demand for office space will be almost zero as downsizing forces companies to reevaluate their real estate needs.  One of the most troubling facts is that according to Grubb & Ellis, “sales of office buildings are off 80 percent from where they were just three years ago.”