Denver has fallen out of the nation's top 10 markets on a prestigious list of U.S. "markets to watch."

The Urban Land Institute's annual list of 'markets to watch' for real estate trends sees Denver at No. 11 this year, down five spots from a year earlier.

Austin, Texas was ranked No. 1 on the annual list, which ranks U.S. cities for best overall real estate investment and development opportunities. Dallas was No. 2, followed by Portland, Seattle and Los Angeles.

"Denver has seen particularly strong growth in the leisure and hospitality, construction, and professional and business services sectors," this year's report read, adding that"Denver has not been able to completely escape the downturn in the energy-related business services sector."

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