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DOWNTOWN DENVER ECONOMIC UPDATEDECEMBER 2015
This report contains the most recent economic indicators available for Downtown Denver and the Business Improvement District. According to the most recent indicators, Downtown Denver economic conditions continued to improve, but at a slightly slower rate than previous quarters. Office vacancy rates declined and average lease rates increased as employment expanded. Retail vacancy rates increased slightly even as consumers continued to spend at a healthy pace.
Summary
EMPLOYMENT RETAIL SALES RESIDENTIAL REAL ESTATE OFFICE MARKET HOTEL MARKET
DOWNTOWN DENVER BID
Industry Share 1Q14 1Q15 Change 1Q14 1Q15 Change
Professional & Business Services 31% 36,381 37,434 2.9% 32,011 32,569 1.7%
Government 19% 23,384 23,038 -1.5% 21,011 20,675 -1.6%
Leisure & Hospitality 15% 17,788 18,591 4.5% 12,792 13,120 2.6%
Financial Activities 11% 14,484 13,127 -9.4% 11,249 11,601 3.1%
Natural Resources & Construction 9% 10,440 11,055 5.9% 9,675 10,440 7.9%
Information 4% 4,330 4,274 -1.3% 3,604 3,513 -2.5%
Wholesale & Retail Trade 4% 4,045 4,233 4.6% 3,047 3,225 5.8%
Education & Health Services 3% 2,663 3,129 17.5% 1,528 1,863 22.0%
Other Services 2% 2,613 2,679 2.5% 2,237 2,245 0.3%
Transp., Warehousing & Utilities 1% 1,446 1,528 5.6% 1,356 1,424 5.0%
Manufacturing 1% 857 1,024 19.5% 122 208 70.0%
Total 118,432 120,111 1.4% 98,634 100,883 2.3%
Employment levels continued to rise in both Downtown Denver and the Business Improvement District (BID) with employment levels rising 1.4 percent and 2.3 percent, respectively. The professional and business services supersector (+1,050 jobs) added the most jobs over-the-year in Downtown Denver, followed by the leisure and hospitality supersector (+800 jobs). Despite low crude oil prices, the natural resources industry continued to add jobs through end of Q1 2015.
107,000
109,000
111,000
113,000
115,000
117,000
119,000
121,000
1Q153Q141Q143Q131Q133Q12 1Q123Q111Q113Q10
123,000
EMPLOYMENT
DOWNTOWN DENVER
HISTORICAL EMPLOYMENT
+1.4%
1Q 2015 Employment Trends
+4.2%
+3.8%
Downtown Denver
+2.3%
Metro Denver
Colorado
United States
Sources: Colorado Department of Labor and Employment, Quarterly Census of Employment and Wages; Colorado Department of Labor and Employment, Labor Market Information, Current Employment Statistics; U.S. Bureau of Labor Statistics; Development Research Partners; Downtown Denver Partnership.
.
Residential development in Downtown and its City Center neigh-borhoods continues at a brisk pace. The Downtown Denver Part-nership recently released a Center City Neighborhood Residential Development Map and Profiles showing that 12,933 units were added since 2011 or are currently under construction. Almost half of these units, 6,165, are currently under construction. 26 projects are scheduled to be completed in 2016 or 2017.
For more information about development in Downtown Denver, refer to the Development Maps by visiting www.downtowndenver.com/resources-downloads.
RESIDENTIAL DEVELOPMENT
City CenterNeighborhood
For-Sale Units
Rental Units
Number of Projects
Auraria - - -
Ballpark 66 0 3
Capitol Hill - 115 1
Central Business District - 354 1
CPV/Denver Union Station - 1,272 4
Curtis Park/Five Points 21 501 5
Golden Triangle - 698 3
Highland 53 632 7
Jefferson Park 56 223 5
La Alma/Lincoln Park - 800 1
RiNo - 1002 4
Sun Valley - - -
Uptown 372 1
Total 196 5,969 35
News & Rankings
• Sunrun, the largest dedicated residential solar company in the U.S., opened an office in Downtown Denver and plans to hire up to 800 workers in the next few years.
• HomeAdvisor is relocating their headquarters to Downtown Denver and opening a sales and training center at 15th and Wazee streets.
• The Urban Land Institute released their 2016 Emerging Trends report and Denver ranked as the sixth-hottest commercial real estate market in the country.
• Money Magazine declared Denver to be the best city to live in the West, calling Denver a “mecca for millennials” and praising Denver’s great access to recreation.
• Denver was ranked third in the U.S. for tech jobs. According to an analysis by Simply Hired, one in five job openings in Denver were technology jobs, the most of any city other than San Francisco or Seattle.
• WalletHub ranked Denver the seventh most livable city in the country.
• Denver has the highest percentage of women partners of any city in the country, with over 28% of partners being women.
• Forbes found that Denver is the third-easiest city in the country to find a job.
About This Report
This report includes the most recent quarterly data available and covers economic conditions in three areas. The
first and smallest area, the Business Improvement District (BID), is the core of Downtown Denver, The second area,
“Downtown,” includes the BID as well as a few surrounding districts such as the Golden Triangle. The third area, City Center
Neighborhoods, includes the BID, Downtown, and surrounding residential neighborhoods such as Uptown and Highland.
Data in this report was provided by Development Research Partners. For questions or comments, please contact the
Downtown Denver Partnership Research Department at 303-534-6161.
Sources: Downtown Denver Partnership, Metro Denver Economic Development Corporation, Denver Business Journal, Denver Post.
DOWNTOWN DENVER ECONOMIC UPDATE DECEMBER 2015
RESIDENTIAL DEVELOPMENTS UNDER CONSTRUCTION AS OF DECEMBER 2015
DOWNTOWN DENVER ECONOMIC UPDATE DECEMBER 2015
The residential real estate market in Downtown Denver and the City Center Neighborhoods continued showing strong growth through the end of the second quarter 2015. The total number of homes sold decreased in both areas over-the-year, reflecting continuing struggles with low inventory. The average sales price and average price per square foot for homes sold in Downtown Denver and the City Center Neighborhoods increased significantly.
RESIDENTIAL REAL ESTATE
DOWNTOWN CITY CENTER NEIGHBORHOODS METRO DENVER
2Q14 2Q15 Change 2Q14 2Q15 Change 2Q14 2Q15 Change
CONDOMINIUMS/TOWNHOMES
Total Homes Sold 179 171 -4.5% 382 369 -3.4% 4,261 4,823 13.2%
Ave. Sales Price $476,132 $554,612 16.5% $353,168 $400,024 13.3% $207,750 $231,616 11.5%
Ave. Price/sf $388 $438 12.9% $326 $375 15.0% $177 $199 12.4%
SINGLE FAMILY HOMES
Total Homes Sold 0 0 --% 106 80 -24.5% 12,521 13,223 5.6%
Ave. Sales Price N/A N/A --% $438,123 $548,813 25.3% $366,337 $407,889 11.3%
Ave. Price/sf N/A N/A 0.0% $305 $360 18.0% $201 $222 10.4%
ALL HOMES
Total Homes Sold 179 171 -4.5% 488 449 -8.0% 16,782 18,046 7.5%
Ave. Sales Price $476,214 $554,612 16.5% $371,622 $426,534 14.8% $326,071 $360,778 10.6%
Ave. Price/sf $388 $438 12.9% $320 $371 15.8% $197 $218 10.7%
Retail sales tax collections in Downtown Denver were almost 5% higher in the second quarter of 2015 compared with the prior year. Downtown’s largest industries, Restaurants and hotel/other accommodation services posted im-pressive gains of 9% and over 17%, respectively. A small retail sales category, Motor Vehicles and Auto Parts, posted the largest gain of 34% due to higher than normal sales by a single taxpayer.
RETAIL SALES
DOWNTOWN BID
Industry Share 2Q14 2Q15 Change 2Q14 2Q15 Change
Restaurants 50% $5,137,399 $5,594,438 8.9% $4,008,924 $4,205,702 4.9%
Hotel & Other Accommodation Svcs. 23% $2,163,928 $2,540,126 17.4% $1,850,867 $1,951,189 5.4%
Clothing/Accessory Stores 6% $680,210 $701,101 3.1% $675,622 $698,155 3.3%
Miscellaneous Stores 5% $688,909 $566,968 -17.7% $337,920 $337,587 -0.1%
Motor Vehicles & Auto Parts 4% $332,698 $444,742 33.7% $146,182 $263,295 80.1%
Manufacturing 3% $437,852 $386,837 -11.7% $352,121 $298,560 -15.2%
Other Categories (under 3% each of total)
9% $1,328,729 $1,047,654 -21.2% $902,791 $777,852 -14%
TOTAL $10,769,725 $11,281,866 4.8% $8,274,427 $8,532,340 3.1%
RETAIL SALES
HOTEL MARKETIndicators show the hotel market in Downtown Denver remains strong. While occupancy rates were slightly down, Average Daily Room Rates and RevPAR both increased. Also, retail sales tax collections from Hotel and Other Accommodation Services have been posting significant increases in recent quarters.
OCCUPANCY RATE AVERAGE DAILY ROOM RATE
REVENUE PER AVAILABLE ROOM
(REVPAR)
2015 Year-to-Date* 80.3% $183.08 $147.07
2014 Year-to-Date* 81.1% $174.28 $141.25
Change -1.0% 5.0% 4.1%
*Data through end of October 2015
The commercial real estate market generally improved in the Downtown Denver market area between the third quarter of 2014 and 2015. The Office market posted declining vacancy rates and increasing lease rates. Retail market fundamentals were mixed in Downtown Denver, reporting declining vacancy rates but slightly higher lease rates.
OFFICE, RETAIL & INDUSTRIAL MARKETVACANCY RATE* AVG. LEASE RATE*
3Q14 3Q15 Change 3Q14 3Q15 Change
OFFICE
BID 11.1% 9.8% -1.3 $30.85 $32.57 5.6%
Downtown 10.4% 9.9% -0.5 $31.12 $32.86 5.6%
Metro Denver 10.6% 9.6% -1.0 $23.05 $24.07 4.4%
INDUSTRIAL
BID ** 0.0% 0.0% 0.0 - - -
Downtown 0.0% 0.8% 0.8 $11.92 $15.54 30.4%
Metro Denver 3.7% 2.8% -0.9 $5.71 $6.81 19.3%
RETAIL
BID 5.8% 6.3% 0.5 $28.19 $29.64 5.1%
Downtown 3.9% 4.6% 0.7 $28.51 $26.78 -6.1%
Metro Denver 5.6% 5.0% -0.6 $15.72 $15.70 -0.1%
HISTORICAL OFFICE VACANCY RATE HISTORICAL OFFICE AVG. LEASE RATE
DOWNTOWN DENVER ECONOMIC UPDATE DECEMBER 2015
25
$26.00
$27.00
$28.00
$29.00
$30.00
$31.00
$32.00
3Q151Q153Q141Q143Q131Q133Q121Q123Q111Q113Q101Q10
$33.00
9.0%
10.5%
12.0%
13.5%
3Q151Q153Q141Q143Q131Q133Q121Q123Q111Q113Q101Q10
15.0%
Sources: City and County of Denver Office of the Controller, Colorado Comps. Sources: CoStar Realty Information, Downtown Denver Partnership, Rocky Mountain Lodging Report.
* Vacancy and average lease rates are for direct space only. Retail and industrial rates are triple-net.
** The BID contains one industrial property, which is occupied.
DOWNTOWN DENVER ECONOMIC UPDATE DECEMBER 2015
The residential real estate market in Downtown Denver and the City Center Neighborhoods continued showing strong growth through the end of the second quarter 2015. The total number of homes sold decreased in both areas over-the-year, reflecting continuing struggles with low inventory. The average sales price and average price per square foot for homes sold in Downtown Denver and the City Center Neighborhoods increased significantly.
RESIDENTIAL REAL ESTATE
DOWNTOWN CITY CENTER NEIGHBORHOODS METRO DENVER
2Q14 2Q15 Change 2Q14 2Q15 Change 2Q14 2Q15 Change
CONDOMINIUMS/TOWNHOMES
Total Homes Sold 179 171 -4.5% 382 369 -3.4% 4,261 4,823 13.2%
Ave. Sales Price $476,132 $554,612 16.5% $353,168 $400,024 13.3% $207,750 $231,616 11.5%
Ave. Price/sf $388 $438 12.9% $326 $375 15.0% $177 $199 12.4%
SINGLE FAMILY HOMES
Total Homes Sold 0 0 --% 106 80 -24.5% 12,521 13,223 5.6%
Ave. Sales Price N/A N/A --% $438,123 $548,813 25.3% $366,337 $407,889 11.3%
Ave. Price/sf N/A N/A 0.0% $305 $360 18.0% $201 $222 10.4%
ALL HOMES
Total Homes Sold 179 171 -4.5% 488 449 -8.0% 16,782 18,046 7.5%
Ave. Sales Price $476,214 $554,612 16.5% $371,622 $426,534 14.8% $326,071 $360,778 10.6%
Ave. Price/sf $388 $438 12.9% $320 $371 15.8% $197 $218 10.7%
Retail sales tax collections in Downtown Denver were almost 5% higher in the second quarter of 2015 compared with the prior year. Downtown’s largest industries, Restaurants and hotel/other accommodation services posted im-pressive gains of 9% and over 17%, respectively. A small retail sales category, Motor Vehicles and Auto Parts, posted the largest gain of 34% due to higher than normal sales by a single taxpayer.
RETAIL SALES
DOWNTOWN BID
Industry Share 2Q14 2Q15 Change 2Q14 2Q15 Change
Restaurants 50% $5,137,399 $5,594,438 8.9% $4,008,924 $4,205,702 4.9%
Hotel & Other Accommodation Svcs. 23% $2,163,928 $2,540,126 17.4% $1,850,867 $1,951,189 5.4%
Clothing/Accessory Stores 6% $680,210 $701,101 3.1% $675,622 $698,155 3.3%
Miscellaneous Stores 5% $688,909 $566,968 -17.7% $337,920 $337,587 -0.1%
Motor Vehicles & Auto Parts 4% $332,698 $444,742 33.7% $146,182 $263,295 80.1%
Manufacturing 3% $437,852 $386,837 -11.7% $352,121 $298,560 -15.2%
Other Categories (under 3% each of total)
9% $1,328,729 $1,047,654 -21.2% $902,791 $777,852 -14%
TOTAL $10,769,725 $11,281,866 4.8% $8,274,427 $8,532,340 3.1%
RETAIL SALES
HOTEL MARKETIndicators show the hotel market in Downtown Denver remains strong. While occupancy rates were slightly down, Average Daily Room Rates and RevPAR both increased. Also, retail sales tax collections from Hotel and Other Accommodation Services have been posting significant increases in recent quarters.
OCCUPANCY RATE AVERAGE DAILY ROOM RATE
REVENUE PER AVAILABLE ROOM
(REVPAR)
2015 Year-to-Date* 80.3% $183.08 $147.07
2014 Year-to-Date* 81.1% $174.28 $141.25
Change -1.0% 5.0% 4.1%
*Data through end of October 2015
The commercial real estate market generally improved in the Downtown Denver market area between the third quarter of 2014 and 2015. The Office market posted declining vacancy rates and increasing lease rates. Retail market fundamentals were mixed in Downtown Denver, reporting declining vacancy rates but slightly higher lease rates.
OFFICE, RETAIL & INDUSTRIAL MARKETVACANCY RATE* AVG. LEASE RATE*
3Q14 3Q15 Change 3Q14 3Q15 Change
OFFICE
BID 11.1% 9.8% -1.3 $30.85 $32.57 5.6%
Downtown 10.4% 9.9% -0.5 $31.12 $32.86 5.6%
Metro Denver 10.6% 9.6% -1.0 $23.05 $24.07 4.4%
INDUSTRIAL
BID ** 0.0% 0.0% 0.0 - - -
Downtown 0.0% 0.8% 0.8 $11.92 $15.54 30.4%
Metro Denver 3.7% 2.8% -0.9 $5.71 $6.81 19.3%
RETAIL
BID 5.8% 6.3% 0.5 $28.19 $29.64 5.1%
Downtown 3.9% 4.6% 0.7 $28.51 $26.78 -6.1%
Metro Denver 5.6% 5.0% -0.6 $15.72 $15.70 -0.1%
HISTORICAL OFFICE VACANCY RATE HISTORICAL OFFICE AVG. LEASE RATE
DOWNTOWN DENVER ECONOMIC UPDATE DECEMBER 2015
25
$26.00
$27.00
$28.00
$29.00
$30.00
$31.00
$32.00
3Q151Q153Q141Q143Q131Q133Q121Q123Q111Q113Q101Q10
$33.00
9.0%
10.5%
12.0%
13.5%
3Q151Q153Q141Q143Q131Q133Q121Q123Q111Q113Q101Q10
15.0%
Sources: City and County of Denver Office of the Controller, Colorado Comps. Sources: CoStar Realty Information, Downtown Denver Partnership, Rocky Mountain Lodging Report.
* Vacancy and average lease rates are for direct space only. Retail and industrial rates are triple-net.
** The BID contains one industrial property, which is occupied.
DOWNTOWN DENVER ECONOMIC UPDATEDECEMBER 2015
This report contains the most recent economic indicators available for Downtown Denver and the Business Improvement District. According to the most recent indicators, Downtown Denver economic conditions continued to improve, but at a slightly slower rate than previous quarters. Office vacancy rates declined and average lease rates increased as employment expanded. Retail vacancy rates increased slightly even as consumers continued to spend at a healthy pace.
Summary
EMPLOYMENT RETAIL SALES RESIDENTIAL REAL ESTATE OFFICE MARKET HOTEL MARKET
DOWNTOWN DENVER BID
Industry Share 1Q14 1Q15 Change 1Q14 1Q15 Change
Professional & Business Services 31% 36,381 37,434 2.9% 32,011 32,569 1.7%
Government 19% 23,384 23,038 -1.5% 21,011 20,675 -1.6%
Leisure & Hospitality 15% 17,788 18,591 4.5% 12,792 13,120 2.6%
Financial Activities 11% 14,484 13,127 -9.4% 11,249 11,601 3.1%
Natural Resources & Construction 9% 10,440 11,055 5.9% 9,675 10,440 7.9%
Information 4% 4,330 4,274 -1.3% 3,604 3,513 -2.5%
Wholesale & Retail Trade 4% 4,045 4,233 4.6% 3,047 3,225 5.8%
Education & Health Services 3% 2,663 3,129 17.5% 1,528 1,863 22.0%
Other Services 2% 2,613 2,679 2.5% 2,237 2,245 0.3%
Transp., Warehousing & Utilities 1% 1,446 1,528 5.6% 1,356 1,424 5.0%
Manufacturing 1% 857 1,024 19.5% 122 208 70.0%
Total 118,432 120,111 1.4% 98,634 100,883 2.3%
Employment levels continued to rise in both Downtown Denver and the Business Improvement District (BID) with employment levels rising 1.4 percent and 2.3 percent, respectively. The professional and business services supersector (+1,050 jobs) added the most jobs over-the-year in Downtown Denver, followed by the leisure and hospitality supersector (+800 jobs). Despite low crude oil prices, the natural resources industry continued to add jobs through end of Q1 2015.
107,000
109,000
111,000
113,000
115,000
117,000
119,000
121,000
1Q153Q141Q143Q131Q133Q12 1Q123Q111Q113Q10
123,000
EMPLOYMENT
DOWNTOWN DENVER
HISTORICAL EMPLOYMENT
+1.4%
1Q 2015 Employment Trends
+4.2%
+3.8%
Downtown Denver
+2.3%
Metro Denver
Colorado
United States
Sources: Colorado Department of Labor and Employment, Quarterly Census of Employment and Wages; Colorado Department of Labor and Employment, Labor Market Information, Current Employment Statistics; U.S. Bureau of Labor Statistics; Development Research Partners; Downtown Denver Partnership.
.
Residential development in Downtown and its City Center neigh-borhoods continues at a brisk pace. The Downtown Denver Part-nership recently released a Center City Neighborhood Residential Development Map and Profiles showing that 12,933 units were added since 2011 or are currently under construction. Almost half of these units, 6,165, are currently under construction. 26 projects are scheduled to be completed in 2016 or 2017.
For more information about development in Downtown Denver, refer to the Development Maps by visiting www.downtowndenver.com/resources-downloads.
RESIDENTIAL DEVELOPMENT
City CenterNeighborhood
For-Sale Units
Rental Units
Number of Projects
Auraria - - -
Ballpark 66 0 3
Capitol Hill - 115 1
Central Business District - 354 1
CPV/Denver Union Station - 1,272 4
Curtis Park/Five Points 21 501 5
Golden Triangle - 698 3
Highland 53 632 7
Jefferson Park 56 223 5
La Alma/Lincoln Park - 800 1
RiNo - 1002 4
Sun Valley - - -
Uptown 372 1
Total 196 5,969 35
News & Rankings
• Sunrun, the largest dedicated residential solar company in the U.S., opened an office in Downtown Denver and plans to hire up to 800 workers in the next few years.
• HomeAdvisor is relocating their headquarters to Downtown Denver and opening a sales and training center at 15th and Wazee streets.
• The Urban Land Institute released their 2016 Emerging Trends report and Denver ranked as the sixth-hottest commercial real estate market in the country.
• Money Magazine declared Denver to be the best city to live in the West, calling Denver a “mecca for millennials” and praising Denver’s great access to recreation.
• Denver was ranked third in the U.S. for tech jobs. According to an analysis by Simply Hired, one in five job openings in Denver were technology jobs, the most of any city other than San Francisco or Seattle.
• WalletHub ranked Denver the seventh most livable city in the country.
• Denver has the highest percentage of women partners of any city in the country, with over 28% of partners being women.
• Forbes found that Denver is the third-easiest city in the country to find a job.
About This Report
This report includes the most recent quarterly data available and covers economic conditions in three areas. The
first and smallest area, the Business Improvement District (BID), is the core of Downtown Denver, The second area,
“Downtown,” includes the BID as well as a few surrounding districts such as the Golden Triangle. The third area, City Center
Neighborhoods, includes the BID, Downtown, and surrounding residential neighborhoods such as Uptown and Highland.
Data in this report was provided by Development Research Partners. For questions or comments, please contact the
Downtown Denver Partnership Research Department at 303-534-6161.
Sources: Downtown Denver Partnership, Metro Denver Economic Development Corporation, Denver Business Journal, Denver Post.
DOWNTOWN DENVER ECONOMIC UPDATE DECEMBER 2015
RESIDENTIAL DEVELOPMENTS UNDER CONSTRUCTION AS OF DECEMBER 2015