At first blush, you might think Denver, Colo. – the Mile-High City and one of the nation’s faster-growing metro areas – might have all the self-storage units that it needs. And if you looked at a very narrow slice of the metro region, you’d probably be right. There are a lot of self-storage facilities in the Denver area, and there’s only so much room to grow to the west, thanks to the imposing Rocky Mountains.

Despite its growth, however, the Denver area has considerable room for more self-storage facilities, according to a TractIQ analysis of the business. Denver County, which includes most of the Denver metro area, has an average of 5.08 square feet of storage space per resident, well below the national average of 8 square feet per U.S. resident. Plus, Denver has many attributes that make it likely self-storage facilities will continue to be in high demand for the foreseeable future: Population growth, housing construction, and a reasonably healthy economy. 

Start with growth: The metro area added about 400,000 people over the decade, a 16.5 percent growth rate – the slowest growth in a generation, but still nothing to sneeze at in a decade when the U.S. population only rose by 7.4 percent. It should also be noted that the latest population figures were taken from the decennial Census, which occurred on April 1, 2020 – barely two months into the pandemic that resulted in an influx of people who suddenly had the option to work from anywhere in the U.S.

Historically, the Denver economy has been all about energy, beer, and skiing. The region, however, has diversified to move into aerospace, telecom, health, information technology, and financial services. Its proximity to some of the biggest ski resorts in the West, recreational opportunities, thriving restaurant scene, and professional sports teams has ensured relatively steady growth.

From a transportation standpoint, Denver is bisected by two major highways: Interstate 70, which runs east-west from Baltimore, Md., to central Utah, and Interstate 25, which stretches from Las Cruces, N.M., to northern Wyoming. In addition, the western portion of Interstate 76 runs from Denver to southwest Nebraska. On a more local level, the city is almost entirely circled by Colorado Highway 470, the eastern portion of which is a toll road that leads to Denver International Airport. It also has 113 miles of light rail, including a connection between downtown and the airport.

For all practical purposes, however, Denver is hemmed in three directions. The Front Range of the Rocky Mountains blocks major expansion to the west. The rapidly growing Fort Collins metro area lies barely an hour to the north, and equally booming Colorado Springs is about an hour to the south. Both metros have a significant amount of self-storage space for their suburbs. Within 20 miles of the city’s center, however, a number of zip codes appear to be underserved, with the average per-capita square footage far less than the national average of eight square feet per resident.

Despite its geographic limitations, the Denver economy has done better than most U.S. metros over the last decade. According to the 2006-10 American Community Survey, the inflation-adjusted median household income was $71,157; the figure rose about 17 percent to $83,289 for the 2016-20 period, almost triple the U.S. inflation-adjusted increase of 5.8 percent.

Even with its relative affluence and growth, Denver’s housing hasn’t quite kept up with its population growth. The metro area added fewer than 100,000 housing units between 2010 and 2020, which may be not only reflect the aftermath of the 2007-09 housing bubble collapse and financial crisis, but also a potential opportunity for space-challenged residents. The slow pace of building has led to a boom for homeowners; median home values shot up from an inflation-adjusted $291,315 in 2010 to almost $412,000 in 2020, a 41 percent increase.

A housing shortage may not last for long. A TractIQ review of building permits show at least 80 projects worth an estimated $6 billion have been planned, designed, or built since 2020 – all within one mile of the city center. More than 300 projects worth $18.75 billion have been in some degree of development within a 10-mile radius of downtown since 2019.

Capitol Hill
Zip Code 80203

The Capitol Hill neighborhood located east of downtown, wedged between the central business district, has traditionally been one of the most popular areas in Denver. The city’s wealthiest residents used to live in the grand mansions along Millionaire’s Row; over the last decade, it’s been taken over by apartment complexes full of young professionals who enjoy its galleries, bars and restaurants.

Very few people own homes in the zip code; 78 percent of households are renters, more than three times the state average. Apartments are also the housing unit of choice in the neighborhood. Almost 95 percent of homes in the zip code are multifamily units, compared to 60 percent in the Denver metro area.

Because it’s home to a large number of young professionals, the median household income is only $58,928. More than half of renters in the zip code are between 25 and 34 years old; three-quarters of renters are younger than 45. Only 13.7 percent of residents in the zip code live in family households; more than two-thirds of people in the zip live by themselves.

The neighborhood also is highly mobile; nationwide, about 2.3 percent of the 2020 population had moved from one state to another within the past year. In the 80203 zip code, 10.2 percent had changed states during the last year. 

There’s one self-storage unit within the zip code, and one more within a mile of the zip code. The typical resident in 80203 has 2.17 square feet of self-storage space, far less than the metro, state or national average. That may need to change soon; a baker’s dozen of projects with almost 2,900 housing units worth more than $564 million have been in various stages of design, planning or construction in the zip code since late 2020. Storage prices in the zip code currently are at a bit of a premium, averaging $2.27 per square foot within a three-mile radius, slightly higher than the national average of $2.15 per square foot and considerably more than the Colorado average of $1.97 per square foot.

Arvada
Zip Code 80004

Once known primarily as a neighbor to the Rocky Flats nuclear weapons production plant, Arvada now primarily serves as a commuter suburb to Denver and Boulder. Located about 10 miles northwest of downtown Denver, Arvada has boomed over the past decade, adding almost 20,000 people – 16.9 percent – to its population. It’s also outgrown its moniker, “Celery Capital of the World,” and its Old Towne Arvada neighborhood attracts people from all around the metro area for its brewpubs and restaurants. The city also boasts roughly 125 miles of hiking and biking trails. The real estate website Redfin ranked West Arvada as the fourth-hottest neighborhood in the nation in a 2020 report.

The eastern part of the zip code is tucked into a triangle north of I-70, at the beginning of I-76 and U.S. Route 36; the western end terminates in the Rocky Flats National Wildlife Refuge, White Ranch Park, and North Table Mountain Park West Trailhead, just north of Golden.

The Arvada neighborhood is one of the more stable areas in Denver; almost 87 percent of residents reported living in the same house in 2020 as they did during the previous  year, and roughly two-thirds of households consisted of families. Only 1.4 percent of people in the zip code said they had moved from a different state. The median household income of $82,311 was roughly on par with the Denver metro area’s median of $83,289 and far exceeded the U.S. median of $64,994.

The median value of a home for the 2007-11 period (the earliest available data from the American Community Survey) was $281,050; the figure had soared to $418,900 in the 2016-20 American Community Survey, an almost 50 percent increase. Slightly more than 70 percent of homes in the zip code are single-family detached housing units, higher than the 59.3 percent average in the Denver metro area.

From a self-storage standpoint, Arvada is underserved, with an average of 3.65 square feet of storage space per resident, well below the national average of 8 square feet per resident. The zip code has four self-storage units. Another nine self-storage units are located within three miles, with the area to the northwest and south of the zip code being relatively saturated. Storage costs average $1.86 per square foot within a mile of the zip code, a discount from the $1.97 average in Colorado and the $2.15 national average.

The Arvada zip isn’t experiencing quite the building boom like other parts of the Denver metro area, but site work began in April 2022 on a 70-unit multi-residential complex worth an estimated $14 million.

Todd Creek/Thornton
Zip Code 80602

Tucked between I-25 and Brighton, the zip code including Todd Creek and parts of Thornton lies about 20 miles north of Denver. Its northern boundary extends just past East 160th Avenue, and the southern tip of the zip code almost reaches East 104th Avenue. The Colorado E470 toll road cuts through the middle of the zip, which includes almost 38,200 people. Thornton is a quiet suburb with almost 2,000 acres of parks and recreation space, and it’s also the closest city to the Denver International Airport and has an entry in the Guinness Book of World Records as home to the world’s largest liquor store. Like the metro area, Thornton has boomed over the past decade, increasing its population by almost 20 percent.

The zip code is one of the wealthier Denver suburbs, with a median household income of $123,633, almost double the national median and one-third more than the typical Denver household makes in a year. Almost 93 percent of homes in the zip code are single-family detached houses, and the same percentage consist of homeowners. The median value of a home in the 80602 zip code is $471,800, a hefty premium over the metro average of $411,800 and the statewide median of $369,900.

It's also one of the more stable areas in the Denver metro, with 88.4 percent of people reporting that they lived in the same house in 2020 as they did during the previous year. About 85 percent of households consist of families, and only 2.5 percent are newcomers to the state.

From a self-storage standpoint, the 80602 zip code is desperately underserved; residents have an average of 0.17 square feet of self-storage space per person. There is one self-storage facility in the zip code, to the far north; the area to the southeast of the zip code has several units but is still underserved, compared to the national average of 8 square feet per person. Storage is relatively cheap here, running an average of $1.80 per square foot within five miles, compared to the state ($1.97) and national ($2.15) averages.

The zip code doesn’t have too much residential building in progress, but it has big plans: A 357-acre, $200 million mixed-use development that will include single- and multi-family homes, retail, commercial areas, and 55 acres of park space is slated to break ground in the third quarter of 2023.

Author: Frank Bass