International Investment in Denver

The world today is one of a global marketplace. Investors are not generally confined to do business in their country of origin, and can purchase or construct property abroad if they have the cash and the connections. For some time, America’s largest and most-notable cities – New York, Los Angeles, San Francisco, etc. – have seen real-estate, and many other forms of, investment from international persons. Is Denver poised to join the ranks of America’s foremost cities given its explosive growth?

In the area of HOAs: yes and no. Not right now, anyway. Buying a condominium in a leading city is a good way for an international investor to take part in a city’s growth and success. They need not live in the unit to see its value rise. In Denver, where people are moving from all over and willing to pay higher rents to be part of the Denver scene, owning a condo from abroad could result in a fantastic income to sweeten the deal. The problem? There are very few condos being built downtown! Current Colorado law effectively prohibits new condominium construction because the liability risk associated with construction defects (real or perceived) is too great. Apartments – and lots of them – are being built, however. There are some foreign-based owners of the existing condos, of course, but many of those are located in nearby cities where many condos were built in the 1970s and 80s. While these valuable properties factor into metro area statistics, they do not necessarily represent Denver proper.

We expect that, as space becomes available, there will be some investment is property by foreigners in Denver. Perhaps they will help transform the city’s skyline. With so many parking lots in the downtown area at a time of explosive popularity of central Denver, increased construction of high-rises is imminent and already occurring. In Jersey City, NJ, for example, a Chinese company is building the tallest building in the entire state. It is a condo tower being developed due to Jersey City’s increasing popularity as a near-New York center of business. Denver could soon experience the same, condo, office, or otherwise, per its strategic location and immense popularity.

Denver does have its own World Trade Center, which is home to offices of the Asian Development Bank, Investment Policy Central, the Bank of Canada, the Overseas Private Investment Corporation, and many others. The fact that there is an international presence here is encouraging. Also, of course, Denver has a major international airport, bringing people and potential investors easily into the city from the world over. At the end of the day, Denver is on its way to being a primary “national city,” rather than simply a regional power player. If the current trends continue and city and business leaders play their cards right, we may someday see Denver as an international city with the type of investment one sees in San Francisco. What do you think? Is that good or bad? Let us know.