Tech firms benefit Denver real estate
A recent report from research firm Reis stated that one sector of the economy that continues to exhibit strong growth and consistently shines regardless of an overall sluggish economy is technology. Furthermore, the source explained that the effect of a strong tech presence in major metros positively benefits the multiple family properties and commercial real estate in that location. Nine metros were selected for the analysis, including Denver, based on the strong tech sectors of the cities, which serve as a substantial driving force in the local economy.
People considering a relocation or looking to get into the real estate market while it continues to favor the buyer can look to real estate in Denver to take advantage of an extra boost from its tech sector. Other major metros that were selected for the analysis include Austin, Texas; Boston; Portland, Oregon; Raleigh-Durham, North Carolina; San Diego; San Francisco; San Jose, California; and Seattle. The report revealed that metros such as these that have large tech bases exhibit average rent growth that is markedly above average. In addition, the metros have shown gains in occupancy in various commercial real estate property types in the past several years.
In an article for National Real Estate Investor, two Reis researchers wrote, "For example, it is well known that demand for multifamily properties is strong across most metro areas. The vast majority (approximately 90 percent) of the 82 major metros that Reis tracks showed declines in vacancy for the past eight quarters. However, demand in tech-heavy metros is decidedly more robust than other markets."
The nine tech-heavy metros that were analyzed in the study demonstrated a current vacancy rate of 3.6 percent, which is significantly less than the average vacancy rate of all major metros, which is 4.9 percent.
The report indicates the positive effect that tech sector businesses seem to have on the overall local economic climate. While Denver is already noted for having a strong tech base, people looking at MLS listings in Denver may be even more encouraged to learn that the future continues to look bright for tech companies in the Mile High City.
A recent article in the Denver Business Journal revealed that 14 Colorado businesses have found a place on Inc. Magazine's "Inc. 500" list of the 500 fastest-growing private companies for 2012. The Premier Group is one of those businesses that is based in Denver. It was No. 120 on the list. The company works in recruitment for the information technology industry. No. 171 on the list was Denver-based Tempus Nova, which works in tech to assist clients in a switch to Google apps for business.