Recently, while driving south on Interstate 25 through the heart of Denver, traffic was very busy, as usual.  Since I had time to observe the city skyline, I counted 15 cranes in the process of reshaping the Denver horizon.  This city is truly boomtown!  Many people complain about the surge of population into Denver.  Not us.  We are thrilled, and here’s why.

  1. Population growth:  According to our State Demographer, Colorado’s population is predicted to grow to 8 million by 2040.  That is a 50% increase in the number of people that will require health care.   Medical office buildings that are positioned in these high growth areas will benefit from higher demand for lease space.
  2. Baby Boomers in Colorado: Experts are calling it “The Silver Tsunami.”  Colorado is expected to double its Baby Boomer generation by 2030.   Specific counties in Colorado will be impacted more than others such as Jefferson County, the state’s largest Baby Boomer community, and Douglas County, which hosts the fastest growing group of people over 60 years old, according to the Denver Post.   
  3. The Millennials have arrived:  Millennials for the first time outnumber Baby Boomers, according to a 2015 U.S. Census Bureau report.  Colorado millennials — people between the ages 20 to 34 — number 1,107,469. Compare this to Baby Boomers — people from 55 to 74 years old — which number 958,289, according to 2013 Census data which is the most recent data available. In Denver, millennials account for 176,458 of the population, while Baby Boomers make up 99,095 of it.  Preferences for health care are far different for millennials.  They are the mobile phone generation, and would much rather park at a Starbucks so they can walk next door to their physician.

Denver is a very popular state for many good reasons.  The climate is dry and warm, the recreational opportunities are endless, and the cost of living is comparatively very cheap.  Recentric Realty Capital has a very favorable outlook for medical office buildings in Colorado and will continue to build on its success with future acquisitions.