Denver Area rents dip in Q4 but occupancies rise

Date: Jan. 21st, 2010
Contact: Denver Business Journal by Paula Moore
Apartment rents in the Denver-Aurora area decreased in the fourth quarter of 2009 from the third period, but occupancies ticked up, according to a RealFacts report released Thursday.

Average apartment rent for the metro area dipped 6.1 percent to $819 in last year’s final period, from $872 in the third quarter of last year.

But Denver-Aurora apartment occupancies increased 0.7 percent to 92.4 percent from 91.8 percent quarter to quarter.

By contrast, Boulder had average fourth-quarter rent of $966 per month and average occupancy of 93.7 percent, according to RealFacts. The Fort Collins-Loveland area reported average rent of $834 and average occupancy of 93.6 percent for the same period.

Nationwide, fourth-quarter ’09 average apartment rents decreased 3.32 percent to $933 a month from $965 in the third period. Occupancies were basically flat at 91.3 percent in last year’s final period and 91.7 percent in the third quarter.

In its research, RealFacts found that 60 percent of the apartment properties it surveyed offered concessions to attract renters.

Common concessions include one month of free rent for signing a long-term lease. Some owners offered $200-$500 savings to tenants who signed a lease on their first visit to a property. Still other apartment complexes have offered iPods and flat-screen TVs as incentives to renters.

Based in Novato, Calif., RealFacts is a provider of apartment data including rental, absorption and occupancy rates as well as property sales.