Quote:
Originally Posted by Stonemans_rowJ
Northwest Denver over 30% vacancy!? I was speaking to a friend who has 18 doors just this week, he is below market rent in B and C neighborhoods and he "suffered a bit" this year due to lease-breaks and extended vacancies.
Normal blip or the beginning of something yuuge?
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Although
Ken makes a good point that with a lower base number of existing apartments a couple of bigger projects can make a yuge impact on vacancy.
I was going to save this for tomorrow but it is almost Friday.
Downtown L.A. Is Starting to Mirror Manhattan’s Glut of Apartments
So Denver is not the only place where supply is getting ahead of demand.
Trying to read the tea leaves is trickier than ever. One thing that's evident is that this year commodities prices have been moving higher at a steady but accelerated rate over previous years. Things like industrial metals and crude oil don't take too long to filter through which could add an assist to inflation and raise construction costs even higher. This is one thing that has caused nervousness in the bond markets.
OTOH there's supposedly still lots of cash reserves and it was just two months ago that Bloomberg carried this article:
The U.S. Yield Curve Is Flattening and Here's Why It Matters
Should the stock market wobble I could see fresh buying in the bond market and the potential for an inverted yield curve which is rather rare but usually portends a recessionary period.
No real signs that the stock market is the least bit nervous though.