Multi-Family Sub Market Report, January 2023 Highlands Ranch – Lone Tree

[Melissa Marney]

Development has picked up in Highlands Ranch and Lone Tree in recent years, but it has also been rivaled by nearby locales such as DTC also growing. The two main groups that Property Managers have noted are filling these vacancies are empty nesters and office workers. Empty nesters are looking at the convenience of apartment living and are saving money by downsizing. Office workers are flooding in due to the booming job market. Because of these two groups more and more development is expected.

Contrary to what many may think, there has actually been a decline in apartment pricing. According to CoStar, “However, after accelerating in the first half of the year, rents have contracted swiftly in recent months, declining by $79/unit nominally since the end of the second quarter. Therefore, the year-over-year figure hides the current market pricing being experienced.”

Many of these apartment buildings share a common theme of being mixed-use and transit-oriented. The light rail network should continue to support a longer-term demand. The more the light rail expands, the more connected the submarkets become to locations such as DIA and downtown Denver.