Boom in Commercial Real Estate near RTD Light Rail
Anyone who’s lived in Denver for more than a decade would call the RTD light rail one of the city’s most transformative developments. Although the first light-rail track opened in 1994, the 19-mile expansion completed in 2006 more than doubled the light-rail’s size and range. The light rail to Golden completed in 2013 and the light rail to Denver International Airport set to open in 2016 make the metro area a much more connected space and has led to an increase in investments around the area. So what does this mean for Denver commercial real estate? Capital Realty Group is here with the scoop on Denver light rail real estate.
Light Rail’s Impact on Denver’s Commercial Real Estate
Along I-25 where the light rail’s southeast corridor was built, once bare plots of land are being snatched up and developed into condominiums, businesses, and office spaces. Nationwide Insurance moving its Denver offices to Lincoln is just one of many examples of how desirable light rail real estate has become. The light rail has brought millions of dollars of development and commercial space to south Denver and now we’re anticipating similar growth in west Denver and Golden. In addition, we can thank the light rail as the impetus for huge renovation and expansion projects such as Union Station, now a hub for Denver’s train traffic and other commerce, and DIA’s new train station and Westin hotel, just the beginning of what will become Airport City.
This development is driven not only by demand (of which there is a lot since Denver is growing), but also by the incentives to invest. The value of preexisting property within a quarter-mile of the light rail has increased substantially in the years following construction of the light-rail, anywhere between 5% and 20% annually.
Residential Growth Increases Demand for Commercial Real Estate
In Denver, one study found that 68% of its light-rail development was housing, and that the southeast corridor light-rail’s proximity to the highway actually inhibited growth by limiting the available land, increasing noise, and requiring space for parking. Nonetheless, many trendy condominium communities have developed, and with these communities businesses open to serve the thousands of new residents.
Although there hasn’t been an enormous growth in new office buildings next to the light-rail lines, the light rail housing boom has by necessity led to an increase in small-scale commercial real estate and a property value increase in businesses that now find themselves very close to a light-rail station.
So at Capital Realty Group, we say that now is the time to invest in light-rail commercial real estate. It’s already serving many people very well.
How To Use This Information
Are you interested in the Denver commercial real estate market, or do you want to hear more advice and insight from the experts? Then come talk to Capital Realty Group! You can call us at 303-573-0377 or contact us online.
If you could live or work near any Denver light-rail station, which would it be?
Categorized in: Amazing Spaces, Companies, & Cultures
This post was written by Capital Realty