Developers Are Slowing Down in Denver

Local experts say that a tight labor force, higher fees and materials costs are making development projects harder to accomplish.

“I don’t know if we will get another development deal out of the ground,” said Matt Joblon, CEO of BMC Investments, adding, “People can’t make the deals pencil out." The Denver Post reports that many developers are holding off on projects in the short-term, but others are going after riskier lending sources, or taking low returns on investment, allowing no margin of error if anything goes wrong.

“We are being patient and waiting. There will be a comeuppance,” predicts Andy Klein, founder of Westside Investment Partners in Denver. Klein has shifted his attentions to less expensive markets in the state, including Colorado Springs, where Westside is developing Victory Ridge, which will host In-N-Out Burger’s operational base as it expands along the Front Range.

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