Denver has become an increasingly popular destination for investments, whether in real estate or local companies. With a growing population and thriving industries like tech and cannabis, Denver offers many promising opportunities for savvy investors. Choosing the right investments in Denver requires researching the market, neighborhoods, and industries. Factors like housing demand, job growth, and business climate all impact smart investing in the Mile High City. By understanding Denver’s economic and demographic trends, investors can make informed decisions when putting their money into this up-and-coming market.
Denver’s Strong Job Growth Attracts Real Estate Investors
Denver has experienced tremendous job growth in recent years, gaining over 100,000 new residents between 2010 to 2020. Major employers like financial services and tech companies are flocking to the city, bringing high-paying jobs in their wake. This influx of new residents is fueling housing demand, making Denver’s real estate market red-hot. Areas downtown and in trendy neighborhoods near the city center are seeing bidding wars and homes selling over asking price. Savvy real estate investors can capitalize on this demand by purchasing rental properties in popular neighborhoods. Focusing on properties that will appeal to Denver’s young professional demographic with amenities like mountain views and proximity to nightlife is key.
Cannabis Industry Creates Unique Opportunities
Since Colorado legalized recreational cannabis, the industry has exploded in the state. There are now over 500 licensed cannabis dispensaries and 650 cultivation facilities in Colorado. This burgeoning new industry has created many investing opportunities, from buying stock in publicly-traded cannabis companies like LivWell to providing capital to small cannabis startups. However, the legal uncertainties around cannabis at the federal level mean investors should research regulations carefully and diversify their cannabis-related holdings.
Denver Tech Scene Attracts Venture Capital Investment
With a highly educated workforce, Denver has become a magnet for tech companies large and small. Major firms like Oracle and Amazon Web Services have major offices in Denver, while local startups are proliferating. There are now over 7,000 tech companies in Denver/Boulder area. For venture capital firms and angel investors, this presents opportunities to invest in Denver’s next big tech success story early on. Compelling startups specializing in areas like cybersecurity, enterprise software, and cloud computing are eager for backing from Denver investment firms.
Strong Business Growth Spurs Local Company Investments
Denver’s diverse business climate provides opportunities for a wide range of investments. From investments in energy companies headquartered in the area to consumer goods, aerospace, and healthcare, Denver has a strong roster of publicly-traded firms. These local companies benefit from the city’s business-friendly tax policies and highly educated workforce. Tracking economic trends and identifying growing Denver firms poised for expansion can help investors choose stocks wisely.
Due Diligence Critical When Investing in Denver
While Denver presents many promising investment opportunities, proper due diligence is still essential for success. Working with a qualified local real estate agent when investing in properties, learning the state’s cannabis laws thoroughly before investing, and partnering with experienced venture capital firms to invest in startups can help mitigate risk. Staying up to date on Denver’s economic health and growth prospects in key industries ensures investing with eyes wide open.
With savvy research and understanding of economic and industry trends, investors can find many lucrative opportunities in Denver real estate, cannabis, tech, and local publicly-traded companies. Weighing options carefully and conducting thorough due diligence will lead to smart investments in the Mile High City.