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AvalonBay Grapples with Delayed Occupancies and Softer Demand in Denver
1 Aug
Summary
- Leasing pace in Denver averages 30 homes per month, but some deliveries delayed
- Urban Denver Governors Park faces elevated concessions and slower leasing
- Job growth 100,000 fewer than projected, impacting demand and rent trends
As of August 1st, 2025, AvalonBay's Chief Investment Officer, Matthew Birenbaum, has reported that the leasing pace in Denver is generally as expected, averaging around 30 homes per month. However, the company has faced some delivery delays, and the Urban Denver Governors Park development, in particular, has encountered elevated concessions and slower leasing due to competitive market conditions.
Suburban Denver is also slightly behind pace, though not as significantly as the Governors Park project. Despite these challenges, AvalonBay's Chief Operating Officer, Sean Breslin, has expressed confidence in the company's ability to achieve the same number of occupied units by the end of the year. Breslin cited the good leasing velocity at various communities and the company's efforts to maintain this pace through increased concessions.
The article also notes that AvalonBay has observed a noticeable leveling off in asking rent trends around mid-May, which Breslin attributed primarily to weaker job growth than anticipated in the first half of the year. The company estimates there were about 100,000 fewer jobs created than projected, which has impacted demand and rent trends in the multi-family sector.
