Denver's Multifamily Sector Posts Best Net Absorption Since 2021
The performance for multifamily in Denver has been mixed this spring. But one thing is for certain — the market's problems aren't from a demand standpoint.
In the second quarter, net absorption was 6,550 units, up 3,350 units from the same period a year ago, according to a new market report from CBRE. This total marked the highest in a three-month period since the third quarter of 2021. The performance was led in the submarkets of Northeast Denver and Downtown/Highlands/Lincoln Park — both of which posted positive demand above 1,000 units. Southeast Denver was the only submarket to post negative absorption (-32 units).
Yet, the rest of the fundamentals for multifamily in Denver may leave more to be desired. Perhaps that stems from the 2,314 units in completions recorded, which was up by about 1,000 units year-over-year.
As a result, the average rent per unit plunged by 5.5 percent to $1,866, while occupancy dropped by 20 basis points to 94.4 percent.
Also, investment activity was weak, with sales volume coming in at just $386 million, down considerably from the $681 million posted in the second quarter of 2025. Also, the average price per unit plummeted by 21.7 percent.
The largest sale involved 218-unit Aspire Cherry Creek, which traded hands for $137.30 million. Westlink at Oak Station and The Harper rounded out the top three, with their respective sales going for $71.55 million and $30.65 million.
On a positive note, however, occupancy and rents did show improvement on a quarterly basis, with increases of 110 basis points and 1.9 percent, respectively. Local landlords will hope the strong demand will continue in the second half, with that being enough to boost fundamentals across the board more consistently over a 12-month period.
Source: GlobeSt/ALM