ECON
2019
ECONOMY | COMMUNITY | OUTLOOK | NETWORK
by Amy Evans, Simpson Property Group
C
ommittee Chair Judy Blaes,
Senior Vice President for
Echelon Property Group kicked
off Econ 2019, followed by a diverse group
of experts that presented data and analysis
on the economy and the industry.
OPERATING INCOME &
EXPENSES RESULTS FROM
THE NAA 2018 SURVEY
Paula Munger, Director, Industry
Research Analysis at the National
Apartment Association reviewed
operating income and expense trends on
a national and local level as well as other
revenue and expenses. NOI increased
5.8% in 2017, operating expenses had
the slowest rate of growth since 2013.
Turnover rates sank to lowest point on
record at 46.8% and a historic low in
renter mobility rate of 21.7%.
Capital Expenditures are on the rise
and hit the highest level since 2005 due
to the competitive market with new
Paula Munger
www.aamdhq.org
construction and amenity wars.
Denver had a 40% turnover rate, which
is lowest on record. Capital Expenditures
were at a record level in Denver,
approximately 50% spent on renovations.
8.6% growth in NOI in 2017 despite
increase in operating expenses. Munger
mentioned that there have been healthy
increases in both rent and other revenue.
METRO DENVER VACANCY &
RENT REPORT
Teo Nicolais, Chief Executive Officer,
Nicolais, LLC reported on the 4th quarter
Metro Denver vacancy and rent report.
Rents decreased in the 4th quarter by
0.6% and vacancy increased by 0.3% which
is a seasonality trend. Vacancy rate for
4th quarter was 5.8%. Submarkets that
had the highest average rent were City
Park at $1,958 and Wheatridge had the
lowest average rent at $1,133, average
rent for Metro Denver was $1,456.
Denver had a 4% increase in absorption
in 2018, with 3,876 new units reported
in the 4th quarter. Nicolais reviewed the
Teo Nicolais
Construction Pipeline, there are 26, 916
units under construction and another
25,686 units planned, 25 new properties
are currently under construction with an
average construction time of 25 months.
NEW CONSTRUCTION IN AURORA
Jonathan Woodward, with Aurora
Economic Development Council gave
an update on new construction and
growth in Aurora. Development is in
strategic areas that include employment,
entertainment and transit. Two new
projects at Fitzsimons include Forum
Fitzsimons Apartments transit oriented
at the Colfax LightRail station and bus
station. Aimco Fitz 1 broke ground
in 4th quarter 2018 in between two
transit stations, Colfax LightRail and
Fitzsimons Parkway LightRail. Two new
developments at I-225 and Iliff – Parq
at Iliff Station – one train stop away
from Medical Center of Aurora. Iliff
Peak TOD by Grandpeak, steps away
from the Iliff LightRail station with
12,000 square feet of retail in between
Jonathan
Jonathan
Woodward
Woodward
FEBRUARY 2019
TRENDS | 27