5/28/24 Weekly 5 in The Know

3 Colorado
Denver Wants to Invest $500 Million to Recharge Downtown
● Expand downtown development authority’s boundary lines to include all of downtown Denver
instead of just a section.
○ Downtown development authority: sets aside portion of property/sales tax collected and
reinvests for economic development activities within the area
● They are expecting the DDA to make more than $500 million available for investment.
● This funding could lead to things such as more housing options through office to residential
conversions.
● This plan is awaiting approval from Denver’s City Council and would at the earliest start bringing
funding in 2025.
Texan Investor To Make Good on Denver Expansion Promise with Hotel-to-Multifamily Proposal
● Multifamily Investor is looking to convert a Residence Inn by Marriott hotel into a luxury
apartment complex.
● This would mean a new 5 story 465-unit apartment building in the Lower Highlands area.
○ This new apartment complex is looking to have many amenities such as a pool, fitness
center, spa, and a massive parking garage.
● This investor is newly targeting Colorado for more multifamily developments in fast growing
areas such as Lower Highlands,
○ which could potentially lead to more supply and demand for apartments in Denver.
Office Lease Exposure Risk Ramps Up
● Since the Pandemic, the demand for office space has been low and slow to bounce back
● Only 20% of the office leases outstanding at the beginning of April 2020 are still active.
● Larger leases tend to have larger terms,
○ so now that pre pandemic leases are expiring and not being renewed, there is a record
high increase in vacancy
● This has now caused an increase in available sublease space for large properties and will continue
to create challenges for landlords especially in major cities.
2 National
Retail Leasing Still Strong in Atlanta Despite Limited Available Space
● Atlanta area is currently experiencing the tightest retail market on record with 3.7% availability
○ This is below both the national average and the 10-year average
● However, Atlanta continues to post substantial leasing activity with anything from grocery stores,
leisure properties, mixed-use developments, to police stations.
● Along with this, Atlanta has only 700,000 sqft under construction, which is less than ever before.
● A continuing combination of growing population and limited space will lead to a very
competitive market for tenants
One of the First Apartment Projects Under Florida’s New Affordable Housing Law Opens
● Florida’s Affordable Housing Law offers lower rents for attainable luxury housing.
○ This provides artificially lowers rents due to some tax incentives
● Live Local Act in 2023: Developers dedicate a minimum of 40% of their units to affordable
housing and in return earn a massive tax break
● Just 13 miles from downtown Miami, this complex offers 341 units
● Priced hundreds of dollars cheaper a month in rent compared to similar apartments
● More projects like this are projected for the future thanks to the Live Local Act.