Real Estate Investment Market Report for Colorado, Utah, and Texas: April 2021
Investing in multifamily properties is a great option for those looking to get into real estate investing and feel comfortable with the responsibility and time commitment. Done right, they can be a great source of passive income. However, it’s important to have an in-depth understanding of how to find properties that will provide worthwhile returns on your investment, and subsequently acquire them. Crunching the numbers instead of being influenced by extraneous factors will quickly give you a comprehensive insight into an overall project.
Learn about the benefits and the challengesMarket Activity
After one year of businesses shutting down amid the pandemic, the Denver office market is still tenant-favorable. 50 percent of negative absorption recorded in 2020 has hit the market due to the 2.1 million square feet of sublease space added in the past 15 months. There are only three net-growth leases larger than 50,000 square feet that tenants are expected to occupy throughout the next nine months. As a comparison, an average year pre-pandemic typically saw leases reach at least double-digits.
Market Activity
Through February 2021, Salt Lake City lost 7,300 jobs, or -1.0 percent year-over-year. The leisure and hospitality sector was hit hardest, losing 8,100 jobs. However, the sector has been adding back jobs for the past nine months. Professional and business services gained 1,200 jobs. Experts predict that all employment sectors will grow at a combined rate of 4.1 percent in 2021 and 5.1 percent in 2022. The market’s economy of $87.9 billion (as measured by gross regional product) is expected to grow 6.3 percent in 2021 and 7.1 percent in 2022.
Market Activity
The Dallas/Fort-Worth economy continues to recover. The unemployment rate is high compared to last year, but there are nearly 3.7 million people employed, reaching pre-pandemic levels. The state’s population increased by 106,758 people year-over-year and by 27,507 in the first quarter alone. As of March 2021, the population had reached a new high of over 7.8 million residents.
