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Page 2 — Office Properties Quarterly — June 2017
CONTENTS Letter from the Editor
T he unemployment rate in
Colorado decreased in April
to 2.3 percent, which is the
lowest unemployment rate
since the state began data
collection in 1976, according to the
Colorado Department of Labor and
Employment. Since the beginning
of the year, the unemployment rate
has decreased
from 3.3 to 2.3 per-
cent.
This rate is the
lowest in the
nation. The nation-
al unemployment
rate is declining as
well, sitting at 4.4
percent in April.
Coming in below
the national rate is nothing new for
our state – the last time the nation-
al labor market was tighter than
Colorado’s was in February 2004.
However, as headlines are increas-
ingly warning, an unemployment
rate this low might not be best for
the economy’s long-term health.
“A rate this low – well beneath
its natural equilibrium – calls into
question the efficiency of the state
economy,” said the JLL May 26 Chart
of the Week. “A shortage for skilled
workers (particularly in white-
collar sectors) could further slow
office market absorption during the
quarters ahead, as employers are
increasingly squeezed to find avail-
able talent.”
In early June, the New York Times
ran an article titled, “We May Be
Closer to Full Employment Than
It Seemed. That’s Bad News.” In it,
author Neil Irwin opines, “The May
job numbers raise a depressing pos-
sibility: that this is as good as it
will get for the United States labor
market.”
With Colorado and Denver’s
unemployment rates even lower
than the national average, it’s cer-
tainly something to be mindful of
in the coming months. Slow wage
growth and a lack of skilled labor
are weak spots in our economy,
with the latter already making its
mark on the construction side of
real estate.
However, on the ground, these
fears haven’t permeated the mar-
ket yet. Office lease rates in Denver
are reaching all-time highs, thanks
to new construction, with rates
averaging $26.31 per square foot in
the first quarter, according to CBRE
research. The first quarter marked
the 23rd-consecutive quarterly
increase and a 4.8 percent increase
year over year.
This issue’s cover story and subse-
quent office roundup highlights 16
office projects under construction
in the Denver office market – just
a portion of the nearly 5 million sf
under construction throughout the
region. If you’re working on a large
office project that wasn’t included,
please reach out. I’d love to hear
from you.
303-623-1148, Ext.104
DENVER’S
PROPERTY MANAGEMENT
POWERHOUSE.
Leasing Advisory  Global Corporate Services  Investment Sales and Capital Markets  Multihousing  Consulting
 Program and Project Management  Property and Facilities Management  Valuation and Advisory Services
Dan Simpson, Director of Management Services
1800 Larimer Street, Suite 1700, Denver CO 80202 T 303.892.1111
Newmark Grubb Knight Frank has built a reputation for delivering superior
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Newmark Grubb Knight Frank provides property management for more than
210 million square feet in the U.S.