August 2015 Downtown Denver Economic Update

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DOWNTOWN DENVER ECONOMIC UPDATE

RESIDENTIAL DEVELOPMENT

.

Residential development in Downtown and its City Center neighborhoods continues at a brisk pace with 1,836 residential units created so far in 2015. Recently completed projects include 2785 Speer, Lumina, Platform at Union Station and Studio LoHi. Skyhouse Denver, one of the tallest planned rental towers in Downtown’s history, is under construction and will add 354 new rental units to the Central Business District when the 26-story project is completed in 2016. Another new 34-story rental tower, The Confluence, is also under construction in the Central Platte Valley neighborhood and will add 288 new units when it is completed in 2017. On the for-sale front, there are 132 townhomes currently planned or under construction throughout the Downtown neighborhoods. For more information about development in Downtown Denver, refer to the Quarterly Development Map Updates at www.downtowndenver. com/resources-downloads.

RESIDENTIAL DEVELOPMENTS PLANNED OR UNDERWAY AS OF AUGUST 2015 City Center Neighborhood

For-Sale Units

Rental Units

Number of Projects

Auraria

-

-

-

Ballpark

28

169

2

Capitol Hill

-

347

3

Central Business District

-

729

2

CPV/Denver Union Station

-

1,780

6

67

435

5

-

938

4

Highland

10

572

3

Jefferson Park

27

179

2

La Alma/Lincoln Park

-

397

2

Lower Downtown

-

-

-

Uptown

-

471

2

132

6,017

31

Curtis Park/Five Points Golden Triangle

Total

Sources: Downtown Denver Partnership, Metro Denver Economic Development Corporation, Denver Business Journal, Denver Post.

About This Report

AUGUST 2015

News & Rankings •

Silicon Valley startup ZenPayroll announced that Downtown Denver will be the location of its second U.S. office. The company plans to hire 100 employees this year and as many as 1,000 employees in the future.

Forbes determined that the Denver Metro area is Ameriaca’s best place for business and careers in the publication’s annual ranking.

The Denver Metro area was ranked number one in the country for economic and gob growth by Area Development magazine.

In June, Hines broke ground on 1144 Fifteenth, a 40-story office tower on 15th and Arapahoe.

Denver ranked fifth in the nation for startup activity in the 2015 Kauffman Index.

WeWork, an international coworking company, leased three floors in the Triangle Building at 16th and Wewatta, adding 70,000 square feet of coworking space to Downtown Denver. The U.S. Census Bureau released 2014 population estimates in June. The latest population estimate for the City and County of Denver is 663,862, an increase of over 15,000 from the 2013 population estimate.

Nerdwallet ranked Denver the sixth best U.S. city for foodies in 2015.

For the third month this year, metro Denver ranked number one in yearover-year home-price gains, accoding to the latest S&P/Case-Shiller Home Prices Index report of major U.S. cities.

Walkscore ranked Denver as the fourth most bikeable city in the U.S.

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.

DOWNTOWN DENVER ECONOMIC UPDATE AUGUST 2015 EMPLOYMENT

RETAIL SALES

RESIDENTIAL REAL ESTATE

OFFICE MARKET

HOTEL MARKET

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 continue to improve. Employment growth is strong, consumers are spending at a healthy pace, and the downtown commercial real estate markets reported rising average lease rates and declining vacancy.

Summary

EMPLOYMENT Employment levels continued to rise in both Downtown Denver and the Business Improvement District (BID) between the fourth quarters of 2013 and 2014, with employment levels rising 4.4% and 2.7%, respectively. The natural resources and construction supersector continued to report the strongest growth, generating an additional 1,500 jobs over-the-year in Downtown Denver. Employment in Downtown Denver’s largest supersector, prof. and business services, is up almost 6% over-the-year.

4Q 2014

Industry

Share

4Q13

4Q14

Change

4Q13

4Q14

Change

Professional & Business Services

31%

36,284

38,299

5.6%

32,301

33,442

3.5%

Government

19%

23,367

23,043

-1.4%

21,157

20,816

-1.6%

Leisure & Hospitality

16%

18,006

19,125

6.2%

12,964

13,246

2.2%

Financial Activities

12%

14,596

15,085

3.4%

11,334

11,470

1.2%

Natural Resources & Construction

9%

9,826

11,329

15.3%

9,261

10,543

13.8%

Information

4%

4,260

4,319

1.4%

3,519

3,529

0.3%

Wholesale & Retail Trade

3%

4,046

4,032

-0.3%

3,029

2,995

-1.1%

Education & Health Services

2%

2,681

2,906

8.4%

1,547

1,659

7.2%

Other Services

2%

2,839

2,810

-1.0%

2,328

2,397

3.0%

Transp., Warehousing & Utilities

1%

1,461

1,491

2.1%

1,380

1,392

0.8%

Manufacturing

1%

848

926

9.2%

116

130

12.4%

Total

118,215

123,365 4.4%

98,937

101,619

2.7%

123,000

Employment Trends Downtown Denver

+4.4%

Metro Denver

+4.0%

Colorado

+3.7%

United States

+2.1%

BID

DOWNTOWN DENVER

121,000

DOWNTOWN DENVER HISTORICAL EMPLOYMENT

119,000 117,000 115,000 113,000 111,000 109,000 107,000

4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14

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.


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