Colorado Ranked High in CNBC’s, "America’s Top States for Business"

Colorado has been recognized once again as a great place to do business. CNBC revealed its annual list of, “America’s Top Place for Business 2008,” yesterday - Colorado was 5th on the list, following Texas, Virginia, Utah, and Idaho. All 50 states were scored based on a variety of factors, including the cost of doing business, workforce quality, economy, education, quality of life, technology and innovation, transportation, business friendliness, and access to capital.  

This is certainly good news, since a strong Colorado economy is vital to a quick recovery in the Denver real estate market. For more information on the state of Denver’s economy, please contact Team Cox Realtors at 303-400-6060.

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There is Good News about Colorado’s Economy!

If you are like me, you are starting to dread the doom and gloom of the national economic news reports. Well, it’s time to focus on some positive news - both the Denver and Colorado economies have many bright spots, including:

·        The University of Colorado at Boulder’s Leeds School of Business released its annual Business Economic Outlook mid-year update today. While there are a few concerns, including high gas prices and inflation, the report is still optimistic that Colorado will see job growth of 1.5 percent (revised downward from 1.9 percent). The report emphasizes Colorado’s booming energy industry that continues to fuel job growth. CU economists believe that Colorado’s economy will be much less impacted than most states in the midst of a national economic downturn.

·        According to Mayor Hickenlooper’s State of the City address last week, Denver has added 30,000 new jobs and 1,500 new local businesses over the past five years. The Mayor is committed to,” expanding and strengthening our small-business sectors.” Hickenlooper also mentioned that 2007 was Denver’s best tourism year ever – there were a record 12.2 million overnight visitors last year.

·        Metro Denver Economic Development Corporation’s Monthly Economic Summary for June 2008 indicates that many of Metro Denver’s economic indicators are favorable, including a relatively healthy job market and an improving real estate market. Denver’s unemployment rate was only 4.3% in April.

A sturdy Denver economy is key to a strong Denver real estate market rebound. For more information on the state of Denver’s economy, please contact TeamCox Realtors at 303-400-6060.

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Denver Real Estate Market Once Again Outperforms National One

Many companies are seeking to expand their office space in the Denver area

While “booming” isn’t a word that I would generally use to describe “Denver” and “real estate” right now, there is one Denver real estate sector that is booming - commercial. Denver’s diverse and expanding industry base has spurred a Denver commercial real estate market boom. Companies are increasingly attracted to the Denver area’s reasonable cost of living blended with its highly qualified and educated workforce.

Yesterday’s Denver Post describes Denver’s commercial real estate market as “booming.” According to the article, Denver is becoming quite the hub for national engineering firms, including Untility Engineering, Black & Veatch Corp, Washington Group, and URS Corp, which are all looking to add more office space in the Denver area. Many other companies from a variety of industries are also divesting themselves from high-end holdings in more expensive areas to relocate to desirable Colorado.

According to the Metro Denver Economic Development Corporation’s Monthly Economic Summary report, Metro Denver’s commercial real estate market is holding steady this year, with office lease rates ranked the third lowest among the nation’s 15 most competitive markets. The Denver area’s vacancy rate has changed very little, while lease rates have slightly increased.

Since the strength of an area’s commercial real estate market is a good indicator of the condition of the local economy, a strong one means only good things are in store for Denver’s residential real estate market. As companies expand in Denver, more workers will inevitably come to our state and buy homes. For more information on the ever-changing Denver housing market, please contact TeamCox Realtors at 303-400-6060.

Forbes Magazine Chooses Denver as the 7th Best City for Home Sellers

While the Denver real estate market has been branded a “buyer’s market” for well over a year now, I did a double take last week after reading that Forbes Magazine had chosen Denver as one of its “10 Best Cities for Home Sellers.”

Although it was unexpected to see this tidbit in black and white, it did not come as a big surprise, as TeamCox Realtors has recognized the strengthening seller’s market for the past several months. Why? Sellers are facing less competition from builders, the Denver economy remains sound, and the market is gaining strength faster than in many other parts of the country. Builders have decreased their activity, resulting in a 58% decrease in building permits, and sold off the bulk of their inventories months ago. Currently, homebuilders are scanning the market for signs of a rebound before increasing activity. While this is obviously not good news for Denver homebuilders, the decreased competition is nothing but promising for Denver sellers.

The other good news for the Denver housing market is that area job growth remains steady, at 2%, which is contradicts national trends. The Denver area is also anchored by a diverse group of industries that seem to be weathering the economic downturn quite well.

Whether you are a Denver homebuyer or seller there is no better time than the present to make your move! For more information on selling your home in the Denver real estate market, please contact TeamCox Realtors at 303-400-6060.

It is important to analyze the local economic picture in addition to the national one

While the national news headlines are reporting doom and gloom regarding the United States economy, it is important to also analyze the local economic picture in addition to the national one. And, it may make you feel better about things if you look at Colorado’s economic picture versus the national one. The good news is that Colorado’s economy has been faring a bit better than many other areas of the country. Here are just a few examples:

-The Denver Post reports that Thomas Hoenig, president of the Federal Reserve Bank of Kansas City which oversees Colorado, told state legislators and bankers this week that Colorado is in a better economic position than many other states, including California and Florida. While weak, the Denver housing market is much stronger than many other areas. The local economy is also supported by a diverse industry case including aerospace, energy, tourism, bioscience, etc.

-While it has increased a bit, Colorado’s unemployment rate of around 4.5%, continues to hover below the national average.

 -The Post also reports that the National Association of Realtors has reported a positive outlook for the Denver real estate market and even went so far is to predict that Denver may be among the next markets to possibly  “boom.”

-In addition, The Denver Post reports that a new risk-index model shows a less-than-5-percent chance that home prices in Denver will be down by 2010. In contrast, there is an 89 percent chance that Las Vegas home prices will be down by 2010.

All of these reports are great news for the Denver real estate market. If Denver’s economy remains strong, then a rebound is on the horizon. Don’t miss your opportunity to buy into the current Denver buyer’s market. For more information on the Denver’s economic picture or regarding the state of the Denver housing market, please contact TeamCox Realtors. 

LoDo Development Creating High Demand and Price Tags for Office Space

Downtown Denver’s office space market in is absolutely thriving, especially in the “LoDo” area. According to a recent article in the Colorado Springs Business Journal, rents in LoDo and the Central Platte Valley, trendy sections of downtown Denver, are running up to $10 higher than those in the Denver Tech Center. Several new existing developments and exciting future plans are fueling this hip area’s growing popularity. 

According to the Downtown Denver Partnership, Downtown Denver’s office space has seen a rate increase of 23% in the past year high-end spaces are now going for more than $30 per sq. ft). There are several new developments in Lower Downtown and Central Platte Valley that will be adding more than two million square feet of office space including new offices on Wewatta Street, Wynkoop, Larimer and Blake Street. 

Sunshine Development of Colorado Springs is planning a $175 million project just north of Denver’s Union Station on Wewatta Street. The Denver Post and Colorado Springs Business Journal have broken the news that the firm is planning the 1.83-acre development that will include offices, shops, restaurants and even a boutique hotel. It is expected that the project will meet Leadership in Energy and Environmental Design (LEED) standards. Construction is slated to begin in 2009. This is exciting news for the already thriving neighborhood surrounding Union Station. 

It is obvious that LoDo continues to be a great investment opportunity for buyers not only searching for properties near their downtown offices, but close to Denver’s trendiest restaurants, shopping and nightlife. For more information on up and coming areas in the Denver real estate market, please contact TeamCox Realtors. Click here to search for homes in LoDo.