Title of Report Here (28pt TNR) · 2015. 6. 4. · Colorado was ranked the eighth most small business friendly state in the country in a survey by Ewing Marion Kauffman Foundation

Metro Denver Economic Development Corporation | July 2, 2014 | Page 1

The Monthly Economic Indicators is a comprehensive analysis of economic conditions in the seven-county Metro Denver area, or the region comprised of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, and Jefferson Counties. There are two metropolitan statistical areas (MSAs) located within the Metro Denver region: the Boulder MSA (Boulder County) and the Denver-Aurora-Broomfield MSA (Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park Counties). This report presents recent data and long-term trends for the seven-county region, MSAs, or counties, depending on availability. The analysis includes four sections: labor force and employment, the consumer sector, residential real estate, and commercial real estate.

Notable Rankings

The latest Fortune 500 list included nine Colorado companies, down from 10 on last year’s list. Arrow Electronics was the highest ranked Colorado company at 138th with $21.4 billion in revenue. The remaining nine companies in Colorado were Dish Network (204), DaVita HealthCare Partners Inc. (230), Liberty Interactive (246), Ball Corp. (321), Newmont Mining Corp. (327), Level 3 Communications Inc. (413), CH2M Hill (437), and The Western Union (458).

According to the 2014 State New Economy Index, produced by The Information and Innovation Foundation, Colorado ranks as the state with the sixth best “fundamental capacity to successfully navigate the shoals of economic evolution.” The ranking considers 25 indicators that are broken up into five areas: knowledge jobs, globalization, economic dynamism, the digital economy, and innovation capacity. The company stated that Colorado maintains a highly dynamic economy and the second most highly educated workforce in the county. The number one ranked state was Massachusetts.

In a report released by the U.S. Bureau of Economic Analysis (BEA) Colorado had the country’s sixth fastest growth in gross domestic product (GDP) through 2013. Colorado reported an annual GDP growth rate of 3.8 percent between 2012 and 2013. North Dakota recorded the fastest GDP growth rate, rising 9.7 percent during the same period. The release stated the Rocky Mountain region led with the highest GDP growth of the country’s eight regions. Of the states within the Rocky Mountain region, Wyoming reported the largest growth, increasing 7.6 percent. The BEA stated that growth in mining was a large contributing factor to the GDP growth in Colorado.

Colorado was ranked the eighth most small business friendly state in the country in a survey by Ewing Marion Kauffman Foundation and Thumbtack.com. The survey also ranked Colorado Springs (1st), Fort Collins (24th), and Denver (28th) among 84 cities in the country. The ranking surveyed 12,632 entrepreneurs nationwide and considered the ease of hiring employees, effectiveness of government training and networking programs, and the friendliness of local government regulations toward business.

In the annual study by MoneyRates.com of the best and worst states to make a living, Colorado was ranked fourth. The study reported that Colorado’s greatest strength was the high average income and the only negative was the high state tax burden. The ranking considered average salary, cost of living, employment rate, and workplace conditions. Washington was ranked first, followed by Texas in second, and Minnesota in third.

According to NerdWallet, Aurora ranks first of 552 U.S. cities for working women. The company stated that due to higher than average population growth, a low cost-of-living, and a relatively high average salary, women in the workforce are best off in Aurora. The ranking considered the median salary for a full-time, year-round working female, women’s pay as a percentage of a man’s pay to determine income equality, and population growth.

According to HomeownersInsurance.com, Denver is among the safest cities for natural disasters. Denver ranked fifth with one in three summer weather events producing hail and one in six winter weather events producing winter storms. The ranking considered the number of weather events occurring between January 2004 and January 2014.


Policy Watch

Local

Colorado Governor John Hickenlooper signed five legislative measures into law, a few of the final laws passed during the 2014 legislative session. House Bill (HB) 1280 boosts civil liberty protections for farms, ranches, and other rural properties, allowing the properties to offer tourist activities to supplement their income, and provides additional lawsuit protections. HB 1374 provides a sales and use tax exemption for aircraft parts to charter aircraft that are registered in other states. HB 1374 will expand opportunities for Colorado companies to renovate small aircraft that pass through the state. HB 1398 allows for the creation of cannabis credit co-ops, providing access to financial institutions for retail marijuana shops, but requires access to the Federal Reserve System. HB 1356 increases the fine for companies that violate state oil and gas regulations. Finally, HB 1269 requires that online retailers collect and remit sales tax revenue, expanding the types of activities that create a nexus between online retailers and the state of Colorado.

National Economic Overview

The U.S. Bureau of Economic Analysis (BEA) released the third estimate of real gross domestic product (GDP) for the first quarter of 2014. The estimate showed that GDP decreased at an annual rate of 2.9 percent through the first quarter, down from the fourth quarter of 2013 growth rate of 2.6 percent. The second estimate reported a decline in GDP by one percent but the revised third estimate showed that the increase in personal consumption expenditures was smaller than previously estimated. The estimate also recorded a larger than expected decline in exports during the quarter. The decrease is attributed to declines in personal inventory investment, exports, state and local government spending, and nonresidential fixed investment. The advanced estimate of second quarter 2014 GDP will be released July 30.

The June conference of the Federal Open Market Committee (FOMC) reported that with growth in economic activity in recent months, the committee would again revise monetary policy. The committee expects moderate expansion in economic activity and steady improvements in labor market conditions through the next few months. The purchase of agency mortgage-backed securities will be lowered to $15 billion per month from the previous $20 billion per month beginning in July. Longer-term Treasury securities will be purchased at a pace of $20 billion per month rather than the previous pace of $25 billion per month. The FOMC also reported that the revisions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help make broader financial conditions more accommodative. The next committee meeting will be held on July 30th.

Economic Indexes & Notable Data Releases

National & International

The U.S. trade deficit rose to $47.2 billion in April, up 6.8 percent from the March deficit of $44.2 billion (revised). Imports increased to $240.6 billion, rising $2.7 billion between March and April, and exports fell $0.3 billion to $193.3 billion. The over-the-month growth in imports is attributed to increases in consumer goods ($1.1 billion), automotive vehicles, parts, and engines ($0.9 billion), capital goods ($0.8 billion), and other goods ($0.3 billion). The slight decline in exports between March and April reflected decreases in capital goods ($0.3 billion), food, feed, and beverages ($0.3 billion), automotive vehicles, parts, and engines ($0.2 billion), and consumer goods ($0.1 billion).

The Conference Board Leading Economic Index for the U.S. increased through May, increasing 0.5 percent between April and May to 101.7. The May increase in the index marks the fourth consecutive month of growth. Economists at the Conference Board report that housing permits slightly restricted index growth through the month, but the index still suggests an expanding economy. They also reported that the data suggests sustained growth through the second half of the year with a two percent growth trend.

The Institute for Supply Management’s Purchasing Managers Index rose 0.5 percentage points to 55.4 percent in May, compared with the April level of 54.9 percent. The May increase in the index marked the 12th consecutive month of


expansion. Of the 18 manufacturing industries tracked in the index, 17 industries reported growth in manufacturing. The Production Index reported the largest increase over-the-month, rising 5.3 percentage points to 61 percent. The Customer Inventories Index also rose between April and May, increasing 4.5 percentage points to 46.5 percent, moving slowly toward an expansionary trend.

The Institute for Supply Management’s Non-Manufacturing Index increased 1.1 percentage points in May to 56.3 percent, compared with the April level of 55.2 percent. The index tracks 18 non-manufacturing industries and 17 industries reported growth between April and May. The New Orders Index rose 2.3 percentage points over-the-month to 60.5 percent, reporting the 58th straight month of over-the-month increases. Businesses reported that the construction market is picking up with large construction projects in the second half of the year, steady activity in sales, and earnings are in line with expectations.

Local

The Leeds Business Confidence Index reported growth for the second quarter of 2014, posting an increase from 59.9 to 61 over-the-quarter. This marked the 10th consecutive quarter of positive expectations. Confidence in the Colorado economy also grew, rising to 66.7 in the second quarter. Of all respondents, 66 percent expect the state economy to expand while 29 percent expect it to remain neutral. As for employment expectations, 43.5 percent of respondents report neutral hiring and 46.4 percent expect positive hiring levels.

The annual report by Longwoods International for Visit Denver stated that more than 14 million people visited Denver in 2013 and spent more than $4 billion. The number of visitors was 3 percent higher in 2013 than in 2012 and the spending level was over 12 percent higher. According to Richard Scharf, President and CEO of Visit Denver, the increase in visitors and revenue was due to tourists being more willing to spend money on hotels, meals, and attractions. Travelers in Denver for business spent more on average than both leisure travelers and those visiting family and friends, with $368 per trip.

The 2013-14 ski season set new records for resort visitations at the Colorado ski resorts. The 25 ski areas in the state recorded 12.6 million ski visits, a 10 percent increase compared with the previous year and 8 percent higher than the five-year average. Colorado Ski Country’s 21 resorts reported 7.1 million visits, while Vail Resorts recorded 5.5 million visits. According to Melanie Mills, the president of Colorado Ski County USA, every resort had a strong year in terms of revenue and some resorts reported record high revenue during the season.

Colorado reported an additional 4,000 online job ads in May compared with the April level. The Conference Board released the report on digital help-wanted ads and the increase to 114,200 ads ceased the downward trend of the last few months. The national trend reported a loss of 18,900 help-wanted ads over-the-month to 4.9 million. The Conference Board stated that the increase in ads shows an increase in the range of occupations for workers, including office workers, food workers, and construction workers. Denver reported an increase of 900 job ads between April and May to 62,800 ads, of which 33,300 were new ads.

According to the Colorado Department of Labor, 32 percent of Colorado’s youth (ages 16 to 19) were employed at some point between May 2013 and April 2014. Teen employment was 16.5 percent higher during the period compared with the previous year, with 94,000 teens employed through the 11-month period. Between May 2013 and April 2014, the unemployment rate for teenagers fell 4.9 percentage points over-the-year to 20 percent. A report by Challenger, Gray, & Christmas Inc. stated that national teen employment in May 2014 reported a net increase of 217,000 employed teens, the largest May employment gain in eight years.

Labor Force and Employment

Employment in Metro Denver increased 2.7 percent between May 2013 and 2014, creating an additional 39,800 jobs during the period. The Denver-Aurora MSA reported 34,800 additional jobs through May 2013 compared with the previous year, an increase of 2.7 percent. Compared with last May, employment in the Boulder MSA rose 2.9 percent, representing 5,000 jobs. The natural resources and construction supersector reported the largest over-the-year percent increase in employment, rising 5 percent and adding 4,200 jobs. The professional and business services supersector created 11,900


jobs and increased employment by 4.5 percent during the same period. The information supersector continued to report employment declines, falling 3.8 percent and losing 200 jobs between May 2013 and 2014.

Colorado employment rose 2.8 percent in May compared with the previous year’s level, adding 65,700 new jobs over the same period. National employment levels increased 1.8 percent over-the-year, with the addition of nearly 2.4 million jobs.

Nonfarm Wage & Salary Employment (000s, not seasonally adjusted)

Month of Month of Month of

Year-to-Date

Average

Year-to-Date

Average

Year-to-Date

Average

Annual Growth

Rate

Annual Growth

Rate

May-14 (p) Apr-14 May-13 2014 2013 % Change 2009 2004

Total 11-County Metro Denver* 1,506.9 1,494.4 1,467.1 1,482.7 1,441.7 2.8% -4.3% 0.8%

Denver-Aurora MSA 1,329.0 1,317.8 1,294.2 1,307.1 1,271.2 2.8% -4.3% 0.8%

Boulder-Longmont MSA 177.9 176.6 172.9 175.7 170.5 3.1% -4.7% 0.9%

Natural Resources & Construction 88.2 85.2 84.0 84.1 80.0 5.2% -16.3% -0.7%

Manufacturing 82.6 81.9 80.7 81.3 80.5 1.0% -10.2% -0.4%

Wholesale & Retail Trade 217.0 217.5 213.4 215.7 211.1 2.2% -5.7% -0.1%

Transp., Warehousing & Utilities 50.2 49.1 50.1 50.2 50.1 0.2% -6.2% 0.5%

Information 50.4 51.4 52.4 51.5 52.1 -1.3% -4.5% -5.4%

Financial Activities 103.2 103.3 103.0 102.6 102.1 0.5% -4.4% -0.1%

Professional & Business Services 276.3 273.6 264.4 269.8 259.5 4.0% -6.2% 3.5%

Education & Health Services 189.9 189.3 181.1 187.7 179.6 4.5% 3.0% 3.2%

Leisure & Hospitality 165.9 162.9 161.3 160.8 154.7 3.9% -3.4% 2.6%

Other Services 56.7 55.8 56.5 56.4 55.8 1.1% -1.8% 1.7%

Government 226.5 224.4 220.2 222.8 216.2 3.1% 1.5% -0.2%

Federal Gov't 29.4 29.4 30.0 29.5 30.0 -1.9% 0.6% -1.6%

State Gov't 58.6 58.2 57.4 57.2 55.8 2.6% 4.0% 0.4%

Local Gov't 138.5 136.8 132.8 136.1 130.4 4.4% 0.8% 0.0%

Colorado 2,437.5 2,424.9 2,371.8 2,411.9 2,344.8 2.9% -4.5% 1.2%

United States 139,192 138,272 136,793 137,251 134,961 1.7% -4.3% 1.1%

*Includes the Denver-Aurora-Broomfield MSA (Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park Counties) and the Boulder-Longmont MSA (Boulder County).

Source: Colorado Department of Labor and Employment, Labor Market Information. (p) =preliminary

Metro Denver Industry Cluster Headlines

IT-Software

SolarWinds, a Texas-based information technology-management software provider, relocated its operations within Boulder to accommodate company growth. The company plans for more than 60 employees to be located in the new office. The president of the company stated that moving the company to another location in Boulder signifies their commitment to growing the database management business in the area.

ViaWest opened their newest greenfield data center in a 200,000-plus-square-foot building in Denver. The data center is located south of Centennial Airport near E-470 and Peoria. The $208 million facility contains 140,000 square feet of raised floor dedicated to data servers and the company plans to invest $316 million over the next seven years.

Broadcasting and Telecommunications

TW Telecom will be acquired by Level 3 Communications, both Colorado-based companies, for nearly $5.7 billion in cash and stocks. The merged company will have a combined workforce of at least 13,000 workers. Since both


companies have headquarters in Metro Denver, elimination of duplicate positions will affect area employment. The companies reported they expect to save $240 million a year in operating costs and investment expenses.

Zayo Group LLC, a broadband infrastructure provider, is opening a 24,000-square-foot facility in August. Located in lower downtown at 1621 18th street, the office will employ 125 workers but not all the positions will not be filled immediately. Company spokesperson Scott Reardon stated that with multiple offices in Denver area, consolidation of Colorado cites may be possible but no consolidation is currently planned.

Other Business and Employment Headlines

MHI Global, a company comprised of five sales consulting firms, is relocating its headquarters to Jefferson County. The organizations consist of Miller Heiman, Impact Learning Systems, Channel Enablers, AchieveGlobal Inc., and Huthwaite. The consulting firms are designed to help increase sales and develop sales strategies for companies of all sizes. The decision to base the headquarters in Jefferson County was attributed to Channel Enablers having already developed extensive resources as a Littleton-based company.

Purely Elizabeth, a local natural and organic foods company, relocated its headquarters from New York City to Boulder. The company stated the move was motivated by a need to be closer to their manufacturing center and to enter into the local organic foods network. The company consists of four employees but only three will make the move from New York City and they will add an additional two employees later this year.

The University of Colorado Boulder approved the development of the first new college since 1964, the College of Media, Communication, and Information. The majors offered in the college will be approved later in the year but are expected to include advertising, public relations and media design, communication, journalism, information, and science and media studies. College enrollment begins in the fall of 2015 for about 1,900 students and will expand to almost 3,100 over five years.

Employment Outlook

The Manpower Employment Outlook Survey expects third quarter hiring in the Denver-Aurora-Broomfield MSA to grow at a brisk pace. The percentage of companies hiring increased 6 percentage points between the second and third quarter, with 26 percent of companies expanding their employment levels. This was the highest percent of companies planning to hire since the fourth quarter of 2008. The percentage of companies planning to decrease employment levels rose over-the-quarter, increasing 3 percentage points to 8 percent. The majority of companies intend to maintain staff levels through the third quarter of the year, though the level fell 8 percentage points over-the-quarter to 64 percent. The survey reported that sectors with the best job outlooks are construction, goods manufacturing, and information, while financial activities plans to reduce staffing levels.

Employment Outlook Survey

Quarter 3 Quarter 2 Quarter 3 YTD YTD Ann Avg 2014 2014 2013 2014 2013 2009

Denver-Aurora-Broomfield MSA

Percent of Companies Hiring 26% 20% 23% 21% 22% 11%

Percent of Companies Laying Off 8% 5% 5% 5% 6% 12%

Percent of Companies No Change 64% 72% 70% 71% 68% 74%

Percent of Companies Unsure 2% 3% 2% 2% 3% 3%

United States

Percent of Companies Hiring 22% 19% 22% 19% 19% 15%

Percent of Companies Laying Off 4% 4% 6% 5% 6% 14%

Percent of Companies No Change 71% 73% 70% 72% 72% 68%

Percent of Companies Unsure 3% 4% 2% 3% 3% 5%

Source: Manpower Inc.


Hiring expectations in the U.S. increased slightly through the third quarter of 2014. The percentage of employers planning to increase employment levels rose 3 percentage points between the second and third quarter surveys, with 22 percent planning to hire more employees. Companies planning to decrease employment levels was unchanged from the prior quarter but was 2 percentage points lower than the previous year. The percentage of companies planning to maintain staffing levels (71 percent) fell 2 percentage points from the previous quarter but rose 1 percent from the prior year. The survey stated that hiring expectations nationwide are strongest in the mining, wholesale and retail trade, and leisure and hospitality sectors.

Unemployment

The unemployment rate throughout the seven counties in the Metro Denver area reported slight improvements through the month of May. The Metro Denver unemployment rate remained constant at 5.2 percent in April and was 1.1 percentage points lower than the previous year. All seven counties reported increases in labor force levels, leading to minor changes in the unemployment rate between April and May. The Adams County unemployment rate fell 0.2 percentage points over-the-month, leading to all seven Metro Denver counties reporting unemployment rates below six percent. Adams County (-1.6 percentage points), the City and County of Broomfield (-1.4 percentage points), and the City and County of Denver (-1.3 percentage points) reported the largest declines over-the-year. Colorado reported an unemployment rate of 5.5 percent during the month of May, a 0.1 percentage point decline over-the-month and 1.2 percentage point decline over-the-year. The national unemployment rate increased to 6.1 percent in May compared with April, but the unemployment rate was 1.2 percentage points below the previous year.

Labor Force Statistics (000s, not seasonally adjusted civilian labor force)

May 2014 2014 YTD Avg 2013 YTD Avg 2009 2004

Labor Force

Unemploy-ment Rate

Labor Force

Unemploy-ment Rate

Labor Force

Unemploy-ment Rate

Ann Avg Unemploy- ment Rate

Ann Avg Unemploy-ment Rate

Metro Denver 1,603.7 5.2% 1,592.9 5.9% 1,571.5 6.9% 8.2% 5.8%

Adams County 237.9 5.8% 237.0 6.8% 235.3 8.3% 9.4% 6.5%

Arapahoe County 332.1 5.4% 329.4 6.0% 324.3 6.8% 8.1% 5.7%

Boulder County 184.1 4.2% 183.3 4.7% 179.6 5.4% 6.8% 4.9%

Broomfield County 32.4 4.9% 32.1 5.6% 31.7 6.5% 7.7% 5.8%

Denver County 337.7 5.6% 335.7 6.4% 331.9 7.6% 9.0% 6.6%

Douglas County 168.8 4.5% 167.2 4.9% 164.4 5.6% 6.9% 4.7%

Jefferson County 310.7 5.0% 308.2 5.6% 304.3 6.7% 7.9% 5.4%

Colorado 2,780.5 5.5% 2,773.5 6.2% 2,740.2 7.2% 8.1% 5.6%

United States 155,841 6.1% 155,012 6.7% 154,678 7.8% 9.3% 5.5%

Source: Colorado Department of Labor and Employment, Labor Market Information. (p) =preliminary

May unemployment insurance claims decreased in Metro Denver, falling 0.7 percent between April and May. The May level was also 9 percent lower than the year-ago level. Claims throughout Colorado also reported an over-the-month decrease, dropping 8.3 percent, and were 13.6 percent below the previous year’s level.

Weekly First-Time Unemployment Insurance Claims

Month of Month of Month of YTD Avg YTD Avg YTD Avg Ann Avg

May-14 Apr-14 May-13 2014 2013 % Change 2009

Metro Denver 1,375 1,384 1,511 1,473 1,654 -10.9% 2,541

Colorado 2,689 2,931 3,112 2,789 3,381 -17.5% 4,752

Note: Reference week data includes the 19th day of the month for all months except November and December, which include the 12th day of the month. Source: Colorado Department of Labor and Employment, Labor Market Information.


Consumer Sector

Sentiment & Spending

The Consumer Confidence Index for the U.S. increased through June to 85.2 from the revised May level of 82.2, an increase of 3.6 percent over-the-month. The national index was 3.7 percent higher in June 2014 than the year prior. Analysts at The Conference Board stated the June index level is the highest level since January 2008 (87.3). They also stated that the increase is attributed to improvement in consumers’ assessment of business conditions while the short-term outlooks on jobs and the economy were favorable and income expectations were mixed.

Colorado is included in the Mountain Region Index and the area reported significant decreases in consumer confidence. The index fell to 79 in June from the May revised level of 92.5, decreasing 14.6 percent over-the-month. The index was 7.1 percent lower in June 2014 compared with a year prior.

Consumer Confidence Index

Month of Month of Month of YTD Avg YTD Avg YTD Avg Ann Avg Ann Avg Jun-14 May-14 Jun-13 2014 2013 % Change 2009 2004

Mountain 79.0 92.5 85.0 86.3 69.0 25.0% 49.7 108.8

United States 85.2 82.2 82.1 81.8 69.0 18.6% 45.2 96.1

Source: The Conference Board. (p) = preliminary

National retail sales reported continued growth through May compared with the previous year’s level, with overall retail sales rising 4.2 percent during the period. Motor vehicle sales were 9.8 percent higher in May 2014 than May 2013 and were 1.4 percent higher than the April level. The building materials sector reported a 4.1 percent increase over-the-year and a 1.1 percent increase over-the-month. After three months of over-the-year declines, gasoline sales increased 0.6 percent between May 2013 and 2014. Gasoline sales for May were also 0.4 percent higher than the April level.

According to the National Retail Federation (NRF), retail sales were disappointing and weaker than expected for May. Retail categories that reported strong growth between April and May included the building supply stores (+1.1 percent), nonstore retailers (+0.6 percent), and furniture stores (+0.5 percent).

Total Retail Sales ($000s)

Month of Month of Month of YTD Total YTD Total YTD Total Annual Growth

Annual Growth

Feb-14 Jan-14 Feb-13 2014 2013 % Change 2009 2004

Total Metro Denver 7,220,531 7,262,307 7,146,962 14,482,838 14,160,587 2.3% -11.6% 7.4%

Adams County 1,599,795 1,632,491 1,575,341 3,232,286 3,079,513 5.0% -17.4% 11.7%

Arapahoe County 1,395,151 1,361,789 1,426,032 2,756,940 2,785,675 -1.0% -8.2% 2.6%

Boulder County 625,208 623,130 608,206 1,248,338 1,217,579 2.5% -9.1% 2.1%

Broomfield County 145,103 146,034 142,237 291,137 283,610 2.7% -8.3% 49.4%

Denver County 1,782,197 1,848,904 1,777,826 3,631,101 3,541,555 2.5% -13.5% 8.1%

Douglas County 564,828 577,018 520,422 1,141,846 1,108,160 3.0% -5.7% 16.9%

Jefferson County 1,108,249 1,072,941 1,096,898 2,181,190 2,144,495 1.7% -10.5% 3.8%

Colorado 12,112,998 12,110,137 11,682,129 24,223,135 23,302,581 4.0% -12.2% 7.8%

Source: Colorado Department of Revenue.

Metro Denver recorded growth in retail sales between February 2013 and 2014, reporting steady expansion throughout most of the local economy. Metro Denver retail sales increased 1 percent over-the-year, with total retail sales reaching $7.2 billion. The largest increase in retail sales between February 2013 and 2014 was in Douglas County, where sales rose 8.5 percent to $565 million. The only over-the-year decline occurred in Arapahoe County, with retail sales declining 2.2 percent to $1.4 billion. Retail sales in Colorado were 3.7 percent higher in February 2014 than February 2013. Four of the seven counties reported over-the-month declines, showing that the poor weather conditions influenced the retail market at the start of the year.


According to the U.S. Bureau of Labor Statistics, the U.S. Consumer Price Index (CPI) slightly increased through May, with growth in both the core – which excludes food and energy costs – and the overall CPI measures. The overall CPI rose 0.3 percent and the core CPI rose 0.2 percent over-the-month. The core CPI increased 2 percent between May 2013 and 2014, while the overall CPI increased 2.1 percent. The growth in CPI between May 2013 and May 2014 can be attributed to over-the-year increases in medical care services (+ 2.8 percent), housing (+2.6 percent), and food and beverage services (+2.4 percent).

According to the AAA Daily Fuel Gauge Report, the national average fuel price for June increased 0.4 percent from May to $3.68 per gallon. The June average fuel price was 5.3 percent higher than the prior year’s level ($3.49 per gallon). Metro Denver reported a greater increase in the average fuel price than the National average from May to June, but a lower over-the-year increase. The average fuel price of $3.58 per gallon for June in Metro Denver was 4.5 percent higher than the May price. The area reported average fuel prices 0.3 percent lower in June 2014 than the previous year’s level.

Stock Market

Stock market gains continued through June, as measured by all four stock indexes. The Bloomberg Colorado index reported a 6.8 percent increase between May and June, while the 2014 June close was 31 percent higher than the previous year. The top three performing stocks in Colorado were petroleum companies. The NASDAQ recorded a nearly 4 percent increase over-the-month and a 30 percent increase over-the-year. The S&P 500 and the DJIA also reported over-the-month increases, rising 1.9 percent and 0.7 percent, respectively.

Stock Market Indexes

Month of Month of Month of YTD Return YTD Return Ann Avg

Return Ann Avg

Return

Jun-14 May-14 Jun-13 2014 2013 2009 2004

Bloomberg Colorado 660.5 618.2 504.0 8.2% 7.8% 4.3% 17.7%

S&P 500 1,960.2 1,923.6 1,606.3 6.1% 12.6% 4.2% 9.0%

NASDAQ 4,408.2 4,242.6 3,403.3 5.5% 12.7% 8.5% 8.6%

DJIA (Dow Jones) 16,826.6 16,717.2 14,909.6 1.5% 13.8% 1.4% 3.1%

Sources: Bloomberg.com; Yahoo! Finance.

Travel & Tourism

The average hotel occupancy rate in Metro Denver rose 1.5 percent to 75.4 percent occupancy in May compared with the April level. The May level was 4.4 percent higher than the previous year. The average room rate for May was $120.81 per night, 2.5 percent lower than the April level and 1.8 percent higher over-the-year.

Metro Denver Hotel Statistics

Month of Month of Month of YTD Avg YTD Avg YTD Avg Annual Annual

May-14 Apr-14 May-13 2014 2013 % Change 2009 2004

Percent of Hotel Rooms Occupied 75.4% 74.3% 72.2% 72.0% 65.0% 10.8% 59.0% 61.9%

Average Hotel Room Rate $120.81 $123.93 $118.71 $117.30 $111.28 5.4% $106.85 $84.42

Source: Rocky Mountain Lodging Report.

Spokespeople for Denver International Airport (DIA) reported that 4.2 million passengers passed through the airport in April, decreasing 8.4 percent from the 4.5 million passengers in March. The April 2014 level was 3.2 percent higher than the April 2013 level, recording an additional 130,275 passengers through the airport.


Denver International Airport Passengers

Month of Month of Month of YTD Total YTD Total YTD Total Annual Annual

Apr-14 Mar-14 Apr-13 2014 2013 % Change 2009 2004

Number of Airline Passengers

4,161,815 4,544,364 4,031,540 16,542,752 16,209,851 2.1% 50,167,485 42,275,913

Source: Denver International Airport, Traffic Statistics.

Residential Real Estate

SkyHouse Denver, a new 25-story apartment building, is expected to break ground in the second half of the year. The 354-unit apartment complex will replace an existing parking lot and be located north of the Mile High Center building and across from Trinity Church. The new complex will include one and two bedroom floor plans, high-end finishes, and floor-to-ceiling glass. The amenities include a clubroom on the 25th floor, fitness area, swimming pool, outdoor kitchen, outdoor covered lounges, and 360-degree views of the city. The finished development will also include a parking structure and ground floor retail space.

The former site of Boulder County’s fire-training center was purchased by Koelbel Urban Homes, an affiliate of Denver-based Koelbel and Company. The $3 million purchase of 6.12 acres will be the location of a new housing development. The company plans to build 31 single-family homes that will range from 1,280 square feet to 2,300 square feet. Homes have an expected list value between $470,000 to more than $700,000 and include a one- or two-car garage, master suites, and options for gas fireplaces.

Confluence Development from Golden announced plans for a 267-unit luxury apartment complex near the Federal Center light-rail station. The completed building, called Union West, is expected by the end of summer 2015. The company stated that the $56 million complex will include a cyber café, rooftop-deck and lounge, high quality fitness center, dog wash room, and a bike maintenance and storage area.

Redhill Realty Investors LLP and Oak Coast Properties, two California-based companies, purchased the One Dartmouth Place Apartments for $30.6 million. The 418-unit apartment complex, near John F. Kennedy Park, will get a $2.6 million renovation. The upgrade will include new appliances, kitchen and bathroom counters, light fixtures, paint, flooring upgrades, and a new on-site dog park.

Home Resales

The National Association of Realtors (NAR) released the May analysis of U.S. existing-home sales, reporting that sales increased for the highest over-the-month rise since August 2011. The total number of existing homes sold across the country rose 4.9 percent between April and May for an annual rate of 4.89 million home sold through May compared with the revised April level of 4.66 million. Existing home sales for May 2014 were 5 percent below the May 2013 level of 5.15 million. The housing inventory rose at the end of May to 2.2 percent higher over-the-month and 6 percent higher over-the-year, representing a 5.6-month supply of homes for sale. NAR economists stated that the increased home sales activity was bolstered by the improving job market and the temporary decline in mortgage rates. They also reported that home buyers were benefiting from slow price growth due to rising inventory levels since the beginning of the year.

Existing home sales in Metro Denver increased steadily between April and May, rising 14.6 percent to 5,064 total homes sold during the month of May. While there was growth over-the-month, home sales were 7.3 percent lower compared with May 2013. Unsold homes on the market were nearly 6 percent higher in May 2014 than April but they were still 56.4 percent lower than the previous year’s inventory level. With low existing home inventory, average sales prices for May reached record highs for both single-family attached and detached products. The average sales price for single-family attached homes rose 2.2 percent between April and May to $230,244 and was 14 percent higher than the previous year’s price. The average sales price of single-family detached homes ($377,594) increased 4.1 percent over-the-month and 11.1 percent over-the-year.


Previously-Owned Home Sales Activity

Month of Month of Month of YTD Total YTD Total YTD Total Ann Total

May-14 Apr-14 May-13 2014 2013 % Change 2009

Home Sales (Closed) 5,064 4,419 5,465 18,769 19,841 -5.4% 39,892

Unsold Homes on Market 7,199 6,796 16,507 7,199 16,507 -56.4% 26,884

Average Sales Price (Single Family Attached) $230,244 $225,350 $202,012 $220,223 $191,304 15.1% $160,199

Average Sales Price (Single Family Detached) $377,594 $362,826 $339,911 $355,246 $327,585 8.4% $266,968

Median Sales Price (Single Family Attached) $183,000 $177,200 $165,000 $136,000

Median Sales Price (Single Family Detached) $312,000 $306,800 $286,900 $220,000

Source: Metrolist, Inc. (p) =preliminary (r) =revised

Home Prices

NAR data show the May median existing-home sales price across the U.S. was $213,400, an over-the-year increase of 5.1 percent. Of the four U.S. regions, the West reported the largest over-the-year increase in May (+8.4 percent) to $297,500. The median in the South was up 4.4 percent over-the-year and the median in the Midwest was up 4 percent. For the second month, the Northeast reported the only decline in median home prices, falling 0.9 percent in May from the previous year.

Median Sales Price of Existing Single-Family Homes ($000s)

Quarter 1 Quarter 4 Quarter 1 YTD Avg YTD Avg YTD Avg Median Median

2014 (p) 2013 (r) 2013 2014 2013 % Change 2009 2004

Boulder MSA $418.7 $442.8 $387.8 $418.7 $387.8 8.0% $345.5 $325.3

Denver-Aurora MSA $288.4 $279.3 $261.2 $288.4 $261.2 10.4% $219.9 $239.1

United States $191.6 $196.9 $176.4 $191.6 $176.4 8.6% $172.1 $195.2

Source: National Association of REALTORS. (p) =preliminary (r) =revised

A separate NAR report revealed that median home prices throughout the Metro Denver area were mixed for the first quarter of the year. The Boulder MSA reported a 5.4 percent decrease ($418,700) in home prices between the fourth quarter of 2013 and the first quarter of 2014. While home prices were lower over-the-quarter, they were 8 percent higher than the first quarter of 2013. The Denver-Aurora MSA showed growth in home prices, reporting a 3.3 percent increase over-the-quarter to $288,400. Between the first quarter of 2013 and 2014, the Denver-Aurora MSA recorded a 10.4 percent increase in the median sales price. The national median sales price fell 2.7 percent over-the-quarter to $191,600 but it was still 8.6 percent higher than the previous year’s level. Of the 173 MSAs included in the first quarter 2014 report, the Boulder MSA reported the seventh highest annual median price and the Denver-Aurora MSA median price was 18th highest.

According to the S&P/Case-Shiller home price index, Denver housing prices increased in April compared with March. The Denver index rose 1.6 percent to 150.59, an absolute increase of 2.39 points, recording the seventh largest over-the-month increase of the 20 cities. All 20 cities tracked by the index reported over-the-month increases as well as over-the-year increases in their indexes. Denver’s home prices in April 2014 were 8.9 percent higher than the prior year’s level. Las Vegas reported the largest increase between April 2013 and 2014, increasing 18.8 percent. Analysts with the company stated that while there was growth in housing prices, the growth in prices was bolstered by cash sales, low inventories, and declining foreclosures. They are concerned about the housing market normalizing before the Federal Reserve tightens its policies next year.


Foreclosures

According to the foreclosure report released by RealtyTrac, the U.S. foreclosure rate decreased 5 percent between April and May. The total filings for May (109,824) were also 26 percent below the May 2013 level. The May 2014 level of foreclosure filings was the lowest level since December 2006. While the number of filings declined nationally, 21 states reported increases over-the-month and 11 states reported over-the-year increases. Massachusetts reported the largest increase between April and May, rising 178 percent to a 15-month high. Nevada reported the largest decrease in foreclosures between April 2013 and 2014 (-57 percent), falling for the eighth consecutive month.

Housing foreclosures throughout the Metro Denver area improved in each of the seven counties between April 2013 and 2014. Metro Denver recorded a 32.1 percent decrease in foreclosures through April compared with the previous year and was 4.1 percent lower than the previous month. Douglas County reported the largest decrease in foreclosures over-the-year, falling 54.8 percent. The City and County of Denver reported the smallest decline in foreclosures, decreasing 2.2 percent between April 2013 and 2014. Jefferson County (-37 percent) and Adams County (-28 percent) were the only counties to report a decline in foreclosures between March and April.

Real Estate Foreclosures

Month of Month of Month of YTD Total YTD Total YTD Total Annual Total Annual Total


Total Metro Denver* 521 543 767 2,132 3,061 -30.3% 26,509 12,311 Adams County 103 143 187 473 663 -28.7% 5,646 2,499 Arapahoe County 149 149 184 559 708 -21.0% 6,233 3,125 Boulder County 25 24 50 109 174 -37.4% 1,441 524 Broomfield County 7 1 13 23 54 -57.4% 273 132 Denver County 136 89 139 434 619 -29.9% 6,141 3,351 Douglas County 38 37 84 161 304 -47.0% 2,680 800 Jefferson County 63 100 110 373 539 -30.8% 4,027 1,880

*The total number of election and demand setups (initial filings) received by county public trustees. Filings may be subsequently cured or withdrawn. Sources: Colorado Division of Housing and county public trustees.

New Homes

The Census Bureau report on new home sales – after adjustment for seasonal trends – stated that national home sales in May rose to 504,000 annual sales from the revised April level of 425,000 annual sales. The May homes sales level was 18.6 percent higher than April and was 16.9 percent higher than the previous year’s level. All four regions in the U.S. reported increases in sales both over-the-month and over-the-year. The Northeast reported the largest over-the-month increase in sales, rising 54.5 percent between April and May. The West also reported significant growth, increasing home sales by 34 percent over-the-month. The South (+14.2 percent) and the Midwest (+1.4 percent) also reported increases in new home sales between April and May. With 34,000 total sales, the Northeast reported the largest increase in sales between May 2013 and 2014, rising 36 percent. The West trailed closely behind, increasing 32.7 percent during the same period. The South (+11.8 percent) and the Midwest (+5.7 percent) posted increases over-the-year as well.

The National Association of Homebuilders (NAHB)/Wells Fargo Housing Market Index reported a modest increase in builder confidence for June. The index rose 4 points to 49 for June from the May level of 45. NAHB


spokespersons reported that the increase is a positive sign of renewed confidence in the industry but developers are facing some barriers due to limited availability of labor. They also reported until there are clearer signs of full economic recovery, consumers will be hesitant to purchase homes.

According to the Census Bureau, the seasonally adjusted annual number of nationwide residential building permits in May (991,000 permits) decreased 6.4 percent from April and were 1.9 percent lower than the prior year. Single-family detached permits nationwide rose 3.7 percent between April and May but were 0.8 percent lower than May 2013. Permits issued for multi-family units (347,000 permits) fell 20.4 percent over-the-month, leading to the overall decline in national permits during the period. The Northeast and Midwest reported increases between May 2013 and 2014, rising 11.4 percent and 9.9 percent, respectively. Declines in building permits occurred in the South (-6.9 percent) and the West (-4.3 percent) in May compared with the previous year. The Midwest reported the largest increase (+3.8 percent) over-the-month, while the West (-15.2 percent) reported the largest decline.

Residential building permits through the Metro Denver area rose through the end of April compared with the prior year, marking the fourth month of over-the-year gains. Metro Denver reported a 100.7 percent increase in total permits issued between April 2013 and 2014, with an additional 774 permits issued. Multi-family permits represented 48 percent of the over-the-year increase, rising 248 percent and issuing 375 additional permits. Single-family attached permits rose 125 percent over-the-year, while single-family detached permits rose almost 50 percent. Compared with March 2014, permits though April in Metro Denver fell 10 percent with 172 fewer permits. The single-family detached market was the only segment to report an increase in permits over-the-month, rising 14.5 percent.

Residential Building Permits

Month of Month of Month of YTD Total YTD Total YTD Total Total Total


Single-Family Detached Units 742 648 496 2,455 2,107 16.5% 2,397 14,260 Single-Family Attached Units 275 305 122 819 382 114.4% 601 4,843 Multi-Family Units 526 762 151 2,812 1,053 167.0% 438 2,681 Total Units 1,543 1,715 769 6,086 3,542 71.8% 3,436 21,784

Source: Home Builders Association of Metro Denver.

Apartment Rental Market

The Denver Metro Apartment Vacancy and Rent Survey for the first quarter of 2014 showed a trend of declining vacancy rates. The Metro Denver apartment vacancy rate fell 0.1 percentage points from the fourth quarter level, as declines in four of the six submarkets contributed to the over-the-quarter decline. Douglas County reported the largest decline in vacancy between the fourth quarter and the first quarter, falling 1.3 percentage points to 3.7 percent vacancy. Jefferson County also reported a steep decline of 1.2 percentage points to 3.4 percent vacancy. Adams County and Arapahoe County also reported declines over-the-quarter, falling 0.6 percentage points and 0.7 percentage points, respectively. The Boulder/Broomfield submarket reported the largest increase in vacancy, rising 3.3 percentage points to 6.7 percent vacancy. Only three of the six submarkets reported lower vacancy rates than their prior year’s levels, including Adams County, Douglas County, and Jefferson County.


Apartment Statistics

Quarter 1 Quarter 4 Quarter 1

YTD Average

YTD Average

YTD Average

Annual Average

Annual Average

2014 2013 2013 2014 2013 % Change 2009 2004

Apartment Vacancy Rate 5.1% 5.2% 4.6% 5.1% 4.6% 8.1% 9.7%

Average Monthly Rental Rate (all units) $1,074 $1,042 $993 $1,074 $993 8.1% $877 $817

Source: Denver Metro Apartment Vacancy and Rent Survey.

As vacancy rates generally declined, the average rental rate of apartments in Metro Denver continued to increase. The first quarter average rental rate in Metro Denver ($1,074) was 3.1 percent higher than the previous quarter’s level. This rate was also 8.1 percent higher than the first quarter of 2013. Adams County reported the largest over-the-quarter increase, rising 4.2 percent, and the smallest increase was in Douglas County, rising 2 percent. The average first quarter rental rates in the six submarkets ranged from $1,262 in Douglas County to $988 in Adams County. Adams County was also the only county with an average rental rate below $1,000 during the first quarter.

Commercial Real Estate

The Denver skyline will be changed with the addition of a 40-story office tower built by the Houston-based Hines development company. The 640,000-square-foot building will be located on 15th Street between Arapahoe and Lawrence streets. The new structure will be among the 10 tallest buildings in downtown Denver. The development will include design elements such as 10-foot ceilings and floor-to-ceiling glass. The completed project is expected in 2017.

Office Market

The Metro Denver office market reported a slight decrease in the vacancy rate and an increase in the average lease rate through the second quarter of 2014. According to CoStar, the direct vacancy rate fell 0.2 percentage points to 10.8 percent vacancy. The 2014 direct vacancy rate was the lowest second quarter vacancy rate since the second quarter of 2001 when the vacancy rate was 8.3 percent. The average lease rate rose 4.3 percent during the second quarter compared with the previous year’s level. The average lease rate gained $0.93 per square foot between the second quarters of 2013 and 2014.

Office property construction remained brisk through the second quarter but projects completed to date were slightly below prior years. There was 1.7 million square feet of space under construction through the second quarter of 2014, a 119 percent increase from the prior year. There was 310,000 square feet of space completed during the period, which was lower than this same time during the past four years. The largest office project completed so far this year was the 106,000-square-foot One Union Station building at 16th and Wynkoop streets.

Office Market Statistics

Quarter 2 Quarter 1 Quarter 2 Quarter 2 Quarter 2 Quarter 2

2014 2014 2013 2012 2011 2010

Number of Buildings 5,939 5,928 5,914 5,898 5,886 5,865

Existing Square Feet (millions) 173.5 173.2 172.3 171.3 170.6 169.4

Vacant Square Feet (direct, millions) 18.7 19.1 20.0 20.7 22.2 22.6

Vacancy Rate (direct) 10.8% 11.0% 11.6% 12.1% 13.0% 13.3%

Vacancy Rate (with sublet) 11.2% 11.5% 12.0% 12.5% 13.5% 14.1%

Avg. Lease Rate (direct, per sq. ft, full service) $22.38 $22.04 $21.45 $20.16 $19.87 $20.22 New Construction Completed (year-to-date) 0.31 MSF,

12 Bldgs 0.08 MSF,

4 Bldgs 0.49 MSF,

8 Bldgs 0.35 MSF,

4 Bldgs 0.45 MSF,

9 Bldgs 0.73 MSF,

4 Bldgs Currently Under Construction 1.73 MSF,

21 Bldgs 2.00 MSF, 21 Bldgs

0.79 MSF, 10 Bldgs

1.30 MSF, 9 Bldgs

0.71 MSF, 8 Bldgs

0.73 MSF, 14 Bldgs

Source: CoStar Realty Information, Inc. MSF=Million Square Feet


Industrial & Flex Market

CoStar Realty data showed that the industrial market improved significantly during the second quarter of 2014. The data showed that with record low vacancy rates, construction picked up considerably in order to keep up with pent up demand for industrial space. The second quarter direct vacancy rate fell 0.2 percentage points to 3.4 percent compared with the first quarter and was 1.7 percentage points lower than the second quarter of 2013. The average lease rate rose 6.7 percent between the first and second quarter of 2014, adding $0.35 per square foot to the average lease rate. There was also a 16.1 percent increase over-the-year in the average lease rate. There was nearly 1.2 million square feet of industrial space competed through the second quarter of the year, the highest level since the second quarter of 2004. Much of the completed construction—about 44 percent—was in the City and County of Denver, including two buildings in the Enterprise Business Center at Stapleton. There was also 1.3 million square feet of space under construction during the period, including three buildings that are over 255,000 square feet each.

Industrial Market Statistics


2014 2014 2013 2012 2011 2010






Avg. Lease Rate (direct, per square foot, NNN) $5.61 $5.26 $4.83 $4.59 $4.63 $4.76 New Construction Completed (year-to-date) 1.18 MSF,

13 Bldgs 0.10 MSF,

4 Bldgs 0.88 MSF,

3 Bldgs 0.06 MSF,

3 Bldgs 0.08 MSF,

2 Bldgs 0.07 MSF,


9 Bldgs 2.22 MSF,

17 Bldgs 0.17 MSF,

4 Bldgs 0.50 MSF,

6 Bldgs 0.24 MSF,

4 Bldgs 0 MSF, 0 Bldgs


The Metro Denver flex market reported modest progress through the second quarter of the year. The direct vacancy rate for flex space declined 0.3 percentage points to 9.4 percent between the first and second quarters of 2014, the lowest rate since the fourth quarter of 2000. The average lease rate increased 2 percent over-the-quarter to $9.72 per square foot. The second quarter average lease rate was also 6 percent higher than the previous year and added $0.55 per square foot during the period. The flex market reported 360,000 square feet of new space was completed during the second quarter and 420,000 square feet of space remains under construction.

Flex Space Statistics


2014 2014 2013 2012 2011 2010







5 Bldgs 0.07 MSF,

2 Bldgs 0.07 MSF,

2 Bldgs 0.00 MSF,

1 Bldgs 0 MSF,

0 Bldgs 0 MSF, 0 Bldgs

Currently Under Construction 0.42 MSF, 6 Bldgs

0.45 MSF, 7 Bldgs

0.10 MSF, 3 Bldgs

0.20 MSF, 2 Bldgs

0 MSF, 1 Bldgs

0.02 MSF, 1 Bldgs



Retail Market

The retail market in Metro Denver reported mix trends through the second quarter of 2014. The direct vacancy rate increased 0.1 percentage points between the first and second quarter of 2014, but it was 0.5 percentage points below the second quarter 2013 level. The average lease rate for retail space increased slightly, rising 0.1 percent over-the-quarter and adding $0.02 per square foot. Compared with the second quarter of 2013, the average lease rate was 1.5 percent higher in the second quarter of 2014 and added $0.23 per square foot to the lease rate.

Most of the retail spaces completed have been relatively small projects. Of the 32 buildings completed in the second quarter of 2014, 28 of them are smaller than 15,000 square feet, with an average size of 5,900 square feet. About 38 percent of the 320,000 square feet of retail space completed so far this year was located in Adams County. An additional 580,000 square feet of retail space was under construction during the second quarter, including three spaces that are 96,000 square feet or larger.

Retail Market Statistics


2014 2014 2013 2012 2011 2010







32 Bldgs 0.13 MSF,

20 Bldgs 0.69 MSF,

39 Bldgs 0.09 MSF,

15 Bldgs 0.51 MSF,

8 Bldgs 0.32 MSF,


23 Bldgs 0.60 MSF,

19 Bldgs 0.35 MSF,

16 Bldgs 0.67 MSF,

27 Bldgs 0.44 MSF,

7 Bldgs 0.17 MSF,

6 Bldgs



Monthly/Quarterly Direction Annual Direction

Positive Changes 14 of 18 15 of 18

Nonfarm Employment Growth

+12,500 +41,000

Employment increased 0.8% from Apr. to May

YTD employment up 2.8% through May

% Companies Hiring (Denver Area)

26% 21%

Companies expecting to add workers increased from 2Q 2014 to 3Q 2014

YTD average down 1 percentage point compared with 2013

Unemployment Rate 5.2% 5.9%

Unemployment flat from Apr. to May Down from 2013 YTD average of 6.9%

Initial Unemployment Insurance Claims

-0.7% -11.0%

Claims decreased from Apr. to May YTD average claims decreased 11.0%

through May 2014

Total Retail Sales -0.6% 2.3%

Metro sales decreased from Jan. to Feb. YTD sales up through Feb. 2014

Mountain Region Consumer Confidence Index

79 86.3

Index down 14.6% from May to June YTD average up 25% through June 2014

Hotel Occupancy

75.4% 72.0%

Increased 1.1 percentage points from Apr. to May

YTD occupancy up 10.8%

DIA Passengers -8.4% 2.1%

Passengers decreased from Mar. to Apr. YTD passengers increased through Apr. 2014

Bloomberg Colorado Index 660.5 +8.2%

Index up 6.8% from May to June YTD Return through June 2014

Dow Jones Industrial Average

16,826.6 1.5%

Index increased 0.7% from May to June YTD Return through June 2014

Home Sales (closed) 5,064 18,769

Sales up 14.6% from Apr. to May YTD sales down 5.4% through May 2014

Median Home Price (Denver-Aurora MSA)

$288,400 $288,400

Up 3.3% from 4Q 2013 to 1Q 2014 YTD price 10.4% higher through 1Q 2014

Foreclosures 521 2,132

Down 4.1% from Mar. to Apr. Down 30.3% YTD through Apr. 2014

Residential Building Permits (Total)

1,543 6,086

Permits decreased 10% from Mar. to Apr. YTD permits up 71.8% through Apr. 2014

Apartment Vacancy Rate

5.1% 5.1%

Vacancy decreased 0.1 percentage points from 4Q 2013 to 1Q 2014

YTD average up 0.5 percentage points through 1Q 2014

Office Vacancy Rate (with Sublet)

11.2% -0.8 percentage points

Vacancy rate down 0.3 percentage points from 1Q 2014 to 2Q 2014

2Q 2014 vacancy rate down from 12% one year ago

Industrial Vacancy Rate (with Sublet)


Vacancy rate down 0.2 percentage points from 1Q 2014 to 2Q 2014

2Q 2014 vacancy rate down from 5.4% one year ago

Retail Space Vacancy Rate (with Sublet)


Vacancy rate down 0.1 percentage point from 1Q 2014 to 2Q 2014

2Q 2014 vacancy rate down from 6.5% one year ago

Economic and Demographic Research Industry Studies Fiscal and Economic Impact Analysis Real Estate Economics 10184 West Belleview Avenue Suite 100 Littleton, Colorado 80127 www.DevelopmentResearch.net 303.991.0070

Title of Report Here (28pt TNR) · 2015. 6. 4. · Colorado was ranked the eighth most small business friendly state in the country in a survey by Ewing Marion Kauffman Foundation

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