The Akin building at 955 Bannock St. is one of many new Denver apartment projects offering steep concessions. (Courtesy of Akin)
Concessions like free rent at Denver-area apartment buildings have hit a 15-year high, according to the Apartment Association of Metro Denver.
“It’s a perfect time to move out of your parents’ home,” AAMD Executive Vice President Mark Williams said at a news conference Tuesday.
The city’s apartment vacancy rate was 6.6% in the third quarter, down 0.4% from the second quarter but up 0.8% compared with this time last year, according to the association. Denver’s average rent, $1,832 a month, is the lowest since early 2022.
“Its almost 10% cheaper to rent an apartment [now] than it was last year,” said Scott Rathbun, of local research firm Apartment Insights.
BusinessDen reported last week that landlords are offering sky-high concessions amid a historic increase in supply at the same time that demand has softened because of declining job growth.
The metro association reports that concessions across the seven-county Denver metropolitan area are averaging $107 a month, or 5.8% of gross rent. Rathbun said this represents an average of free three weeks of rent per year.
“It’s almost an all-time high for our entire survey,” Rathbun said.
The “free rent” setup allows tenants to pay a lower effective rent, while landlords can claim the reduction as a marketing expense and claim that tenants pay full price.
One landlord in a particularly competitive pocket of Denver isn’t stopping at free rent.
Rhys Duggan, founder and CEO of Revesco Properties, is offering a $50,000 cash prize to one lucky renter in his apartment building at 955 Bannock St. in the Golden Triangle.
Rhys Duggan
The 98-unit property, part of the Akin apartment brand jointly run by Revesco and fellow Denver-based firm Alpine Investments, was completed this spring and is around 50% leased, Duggan said.
Residents of the building as of Jan. 15 just have to sign up for the drawing to be eligible to win the sweepstakes. Another tenant will win free rent for a year.
“We … wanted to think of a creative way to attract new renters in a very competitive submarket,” Duggan said, noting that there are a number of new apartment buildings in the Golden Triangle.
The sweepstakes is on top of the already steep concessions Duggan’s building is offering: up to eight weeks free for yearlong leases, 12 weeks free for 16- to 18-month leases and a ski pass or $800 Visa gift card.
The starting rent for a 650-square-foot one bedroom unit with no balcony at Akin Golden Triangle is $1,810 a month, going up to $2,705 for a roughly 830-square-foot apartment with a large balcony, according to the building’s website.
The project has faced some financial challenges. Its general contractor, Pinkard Construction, initially slapped a nearly $2.6 million lien on the building for unpaid work, according to public records. The company reduced that amount to $1.4 million last week. The property is on a $29 million construction loan set to mature in 2028.
“We’re working with Pinkard in good faith to resolve the outstanding issues,” Duggan said.
Akin buildings are typically smaller and have fewer amenities than other buildings. They aim to be higher end and attract a slightly older renter. They’re located in dense urban neighborhoods like Tennyson Street or Bonnie Brae. The former opened this year, and the latter will deliver in the spring of 2027.
“I think demand has bottomed out,” Duggan said. “I think we’re going to see an uptick in demand, and obviously supply is very constrained. … I can look out of my office building in LoHi and see almost no cranes.
“I used to see 16 of them.”
The Akin building at 955 Bannock St. is one of many new Denver apartment projects offering steep concessions. (Courtesy of Akin)
Concessions like free rent at Denver-area apartment buildings have hit a 15-year high, according to the Apartment Association of Metro Denver.
“It’s a perfect time to move out of your parents’ home,” AAMD Executive Vice President Mark Williams said at a news conference Tuesday.
The city’s apartment vacancy rate was 6.6% in the third quarter, down 0.4% from the second quarter but up 0.8% compared with this time last year, according to the association. Denver’s average rent, $1,832 a month, is the lowest since early 2022.
“Its almost 10% cheaper to rent an apartment [now] than it was last year,” said Scott Rathbun, of local research firm Apartment Insights.
BusinessDen reported last week that landlords are offering sky-high concessions amid a historic increase in supply at the same time that demand has softened because of declining job growth.
The metro association reports that concessions across the seven-county Denver metropolitan area are averaging $107 a month, or 5.8% of gross rent. Rathbun said this represents an average of free three weeks of rent per year.
“It’s almost an all-time high for our entire survey,” Rathbun said.
The “free rent” setup allows tenants to pay a lower effective rent, while landlords can claim the reduction as a marketing expense and claim that tenants pay full price.
One landlord in a particularly competitive pocket of Denver isn’t stopping at free rent.
Rhys Duggan, founder and CEO of Revesco Properties, is offering a $50,000 cash prize to one lucky renter in his apartment building at 955 Bannock St. in the Golden Triangle.
Rhys Duggan
The 98-unit property, part of the Akin apartment brand jointly run by Revesco and fellow Denver-based firm Alpine Investments, was completed this spring and is around 50% leased, Duggan said.
Residents of the building as of Jan. 15 just have to sign up for the drawing to be eligible to win the sweepstakes. Another tenant will win free rent for a year.
“We … wanted to think of a creative way to attract new renters in a very competitive submarket,” Duggan said, noting that there are a number of new apartment buildings in the Golden Triangle.
The sweepstakes is on top of the already steep concessions Duggan’s building is offering: up to eight weeks free for yearlong leases, 12 weeks free for 16- to 18-month leases and a ski pass or $800 Visa gift card.
The starting rent for a 650-square-foot one bedroom unit with no balcony at Akin Golden Triangle is $1,810 a month, going up to $2,705 for a roughly 830-square-foot apartment with a large balcony, according to the building’s website.
The project has faced some financial challenges. Its general contractor, Pinkard Construction, initially slapped a nearly $2.6 million lien on the building for unpaid work, according to public records. The company reduced that amount to $1.4 million last week. The property is on a $29 million construction loan set to mature in 2028.
“We’re working with Pinkard in good faith to resolve the outstanding issues,” Duggan said.
Akin buildings are typically smaller and have fewer amenities than other buildings. They aim to be higher end and attract a slightly older renter. They’re located in dense urban neighborhoods like Tennyson Street or Bonnie Brae. The former opened this year, and the latter will deliver in the spring of 2027.
“I think demand has bottomed out,” Duggan said. “I think we’re going to see an uptick in demand, and obviously supply is very constrained. … I can look out of my office building in LoHi and see almost no cranes.
“I used to see 16 of them.”
