CREJ - Office Properties Quarterly - September 2016
While working on the cover story, I learned some interesting tidbits about Denver that help put into perspective our growth and changing national reputation. Laura Brandt is the economic development director with Metro Denver Economic Development Corp. She’s been in her position for more than 12 years and has done economic development for more than 30 years. She’s seen firsthand how our reputation has changed as she leads conversations with prospect companies considering a move or expansion to the area. Metro Denver EDC tracks activity through the metro area and Northern Colorado, which includes Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson, Larimer and Weld counties. Whenever a company calls and says it wants to be in Denver, Brandt has to first ask the caller what exactly Denver means to him. In some cases, it means the city and county, for others it means right downtown, while others think it represents the whole region – from as far north as Cheyenne, Wyoming, to as far south as Colorado Springs, she said. Referencing Denver is beginning to reflect something similar to what references to Chicago, London or Los Angeles might evoke. “You think of the region, you don’t really think of the specific municipality,” she said. During my interviews, I often asked what threatens to hamper all this activity the market is enjoying – thinking that if this is a boom, there must be a potential bust. While my sources acknowledged upcoming challenges – escalating costs, maintaining our strong workforce and remaining more desirable than our sister cities – one statement stood out. When companies from the coasts are considering a noncoastal expansion, often they’ll look at Phoenix, Salt Lake City, Portland, Oregon, or Austin, Texas, in addition to Denver. Alex Hammerstein with CBRE told me that Denver is probably winning over SLC, Phoenix and the like because of our labor base. And we’re winning over the Austins and Portlands of the world because our of lower cost of doing business, which takes into account Denver’s real estate costs and cost of living. While it’s always important to be aware of the competing cities, Hammerstein seems confident in Denver’s future, citing that Denver is one of the fastest-growing cities in the U.S. “The labor pool isn’t going anywhere,” he said. “It’s getting better. It’s getting stronger. I think there’s always a threat of being more expensive than some third-tier cities, but when it comes to labor base, we win that every day.” Hammerstein works mainly with tech companies, but I believe his comment transcends the one industry, and here’s to hoping this optimism can be applied to our entire market.