All Forum Posts by: 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.

Inverness, settled in the Southeast Suburban area of Denver, is an ideal location for large corporate companies. The area is saturated with skilled workers, is surrounded by relatively affordable housing, and offers easy access to local attractions or Denver. According to CoStar, “Technology, finance, and healthcare companies are prevalent throughout this submarket. DirecTV, Comcast, and ViaSat have a large office presence”.

Leasing activity in the area has been quieter than usual with more companies shifting towards hybrid or remote work. This has caused the vacancy rate in the area to rise to 17.7%, one of the highest in the Denver area. However, this was not necessarily a pandemic-driven trend, some offices have sat vacant since 2019.

This is not to say that there are not companies eager to find office space. Companies in defense and aerospace have boosted office leasing in the Denver area near Inverness. The healthcare industry has also been very active in the area, including large companies such as United Health Care and AllHealth.

Major new developments in the area have been limited in the locale in the last decade, with more building going on in the neighboring Denver Tech Center. There is not anything currently under construction in the area, likely because of variability in economic predictions for the coming year. But, it is worth commercial buyers considering, with an almost 10% smaller price tag than similar spaces in Denver.

CoStar notes, “Investors are increasingly drawn to the growing Southeast Suburban Corridor where a high concentration of large corporate users were located, and investment activity picked up in the post-pandemic era…”. If you are interested in learning more about available space in Inverness, our Corken + Company team is here to help. Learn more about our commercial real estate services at https://www.corken.co/services/commercial/

Discover more from CoStar.com

With all of the talk in the media about the state of the housing market, it’s easy to hear all of the negative chatter. However, there is good news to be heard, current data shows that today’s housing market is not similar at all to the 2008 recession.

The housing crash that happened in 2008 was largely fueled by buyers’ ability to get a loan. The terms on which a buyer could borrow were much easier than they were today, making those who may have been underqualified appear financially stable enough to purchase. Therefore, banks were writing loans out to parties who may not be able to financially handle the monthly expenses. According to Keeping Current Matters, “lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices.” With tighter lending standards today, bankers are giving out loans to individuals with much higher qualification levels.

In addition, because of these poor lending practices, many homeowners were near or facing foreclosure. At the time of the actual crash, homeowners could no longer recoup the money they had spent or lent towards their home. Today’s foreclosure rates are much lower than in this time period because of the higher lending qualifications.

The high rate of foreclosures in the 2008 crash caused an influx of distressed sales in the market. At the time, this influx caused too many homes to be on the market, causing prices to drop significantly. Though foreclosures may rise in the next year, we should expect less of a dramatic drop in prices and less distressed home sales on the market. We also saw a slow of new home builds last year, and an uptick in demand at the start of this year, creating a healthy balance of demand in the market.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $375,000
Cash invested: $30,000

Converted property to a 2-1 and refinanced years back to be paid off in four years to pay for my daughter's college and be a cash flowing investment following that. This goes to show if you hold real estate long enough, it all works out. This purchase was prior to the housing crash, and I am so glad I stuck with it. It is always best to pivot versus walk away. All challenges have answers if you think outside of the box.

What made you interested in investing in this type of deal?

It was originally a house hack with a second unit converted out of the garage and then full rental property when I moved to Denver.

How did you find this deal and how did you negotiate it?

MLS and negotiated with my agent.

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

Remodeled complete primary property, backyard and converted the garage to a second unit.

What was the outcome?

Currently valued at mid $700,000 and will be paid in full in four years.

Lessons learned? Challenges?

I put solar panels and a tankless water heater to minimize utilities since they are not truly split. Added laundry to both units to increase rents and have parking available for both units.

Challenges- Originally rented as I pay utilities and eventually transitioned out of that over a year ago. Always have the tenant pay utilities.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes- Agent in San Diego, and traditional lender.

Color can have a profound impact on mood and emotion—it’s a powerful, transformative design tool. Thinking of updating your home? Give it a fresh and sophisticated look, with one of these 2021 paint colors of the year:

🎨 Aegean Teal (coastal blue) by Benjamin Moore

🎨 Urbane Bronze (brownish-gray) by Sherwin-Williams

🎨 Soft Candlelight (muted yellow) by Valspar

For more design-forward tips to spruce up your home this year, contact our team!

www.MelissaMarney.com

#realestate #realtor #realestateagent #realestatetips #homebuyer #homeseller #homeowner #homedesign #remodel #designtrends #loveyourhome #designinspo #homedecor #hometrends

Thank you Kyle- Do you also have them sign any type of liability contract? 

I have a property in California, 2 on 1, and a tenant wants to have a foster dog. I want to make sure they are responsible for all liability since it is a shared yard. Also responsible for any damage. I can add a pet rent each month for $25-$30 a month but am more  concerned about the liability portion than anything.  Any verbiage or help is appreciated.

Best,

Melissa