According to the most recent quarterly economic update data available, Downtown Denver’s economy is stable. Employment increased over-the-year in Downtown Denver for the 12th consecutive quarter. Downtown Denver’s office market improved, with lower vacancy rates and higher lease rates than the year before. However, retail sales decreased slightly and retail real estate market indicators were mixed. In addition, the residential real estate market slowed. More highlights of the April 2014 Economic Update include:
- Employment increased over the year by 2% in Downtown Denver in the third quarter 2013 (the most recent data available), representing the 12th consecutive quarter of employment gains in Downtown Denver.
- Retail sales tax collections were essentially flat in the fourth quarter 2013, with a 0.2% decrease in Downtown Denver and 0.3% increase in the BID compared to the previous year.
- Hotel industry indicators were mixed at the end of 2013. Compared to the end of 2012, retail sales tax collections from hotels decreased slightly and Downtown Denver hotel occupancy rates were flat; however, the average room rate increased.
RESIDENTIAL REAL ESTATE
- The residential real estate market was weaker in the fourth quarter 2013 compared to the fourth quarter 2012. The number of homes sold, the average price per square foot, and the average sales price decreased in both the BID and Downtown Denver markets.
- Residential development in Downtown Denver and the City Center Neighborhoods continues to thrive with 7,170 rental units and 173 for-sale units under construction or planned as of April 2014.
COMMERCIAL REAL ESTATE
- Commercial real estate indicators were positive in the first quarter of 2014. Lease rates increased and vacancy rates decreased in both the BID and Downtown Denver office markets.
- Retail market indicators were mixed in the first quarter of 2014, however market fundamentals remain strong.
- Construction began or continued on a number of new office and hotel developments through the first quarter 2014.
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