CREJ - Office Properties Quarterly - December 2016
Throughout 2016, the Denver region received many accolades, perhaps most notably being named Forbes’ Best Place for Business and Careers for the second year in a row. As someone who has lived and worked here for 30 years, it wasn’t news to me but, clearly, the secret is out about our region. Following are some of the factors that make our metro area the best place to run a business and to pursue a career. • A diverse economy. From aerospace to agriculture, the Denver metro area has solid footing in a wide array of industries. Those businesses include sole proprietors (we’re home to the fifth-highest concentration in the country) and Fortune 500 companies (10 are rooted in Colorado) alike, from startups to family owned businesses that have been around since the 1870s. And it’s not just a strong business sector that makes us successful; we have outstanding research institutions, federal labs and educational institutions that also drive our economic success. • Location is everything. The central location in the U.S. and the ease of travel out of Denver International Airport make Denver a no brainer for business and conventions. When you combine that ease of travel with Colorado’s great outdoors, including 58 14ers and 25 ski areas, you get $19 billion in tourism and outdoor recreation each year in Colorado.
• An educated workforce. The state has the second-most-educated workforce in the country with 48 percent of our adults holding at least a two-year degree. This highly skilled workforce is what attracts so many companies to Colorado. We also have a higher median household income, $71,146, compared to the national median income of $55,775. Those salaries help create a great quality of life. • Millennials matter. You’ve no doubt been talking about millennials in your own business and for good reason. Denver ranks third out of the top 10 cities where millennials want to move. Denver also ranks fourth for millennials with at least a bachelor’s degree – that’s 22.6 percent of people working – and they are helping keep our competitive advantage of a highly educated workforce. • Achievable work-life balance. More than any other generation, millennials place work-life balance as the most important factor for choosing a job. That’s no surprise, as the ability to enjoy the outdoors or discover the city has always been a selling point for people who live and work here. People care about health in Colorado. We are the leanest adults in the country and among the most active, proving that citizens take time to enjoy those great outdoors. Areas for Improvement Our greatest strength may be that we are always looking at our weaknesses. At the Chamber of Commerce, we’re working on ways to improve these challenges. We are as committed today as we were 150 years ago to help chart our course by continuing to work on some of the most critical issues of our day. • A place to call home. The median home price in the Denver area this fall was $350,000, which is a 10 percent increase year over year. Our housing market continues to be the most expensive noncoastal market and is $127,000 more than the national average. Workers earning the current median incomes can’t afford to buy a median-priced home, leaving many out of the market. We will continue to ask the state Legislature to address this issue by creating a better process to resolve disputes between builders and condo owners. We also are working on strategies that can lower the cost of building condos and assist Colorado workers with down payments and loans. • Sitting in traffic. When everyone has good jobs, traffic can be bad. Traffic congestion in Colorado costs drivers $1.35 billion annually in delays and fuel, which equates to an average of $913 per person in the Denver area. In 2014, Denver drivers lost 49 hours due to congestion. While we all agree this is a huge challenge, we haven’t been able to get funding to address road and bridge maintenance for the entire state. We have brought together the public, private and nonprofit sectors to explore the investments we should make in transportation in the future. • Homegrown talent. By 2020, 74 percent of our jobs will require some education after high school. The state is tied with Minnesota as the two states requiring the most-educated workforce. Today, only 28 percent of Colorado’s students go to and through post-secondary options on time. We need to ensure our schools prepare our kids for these opportunities. In addition, we started our own workforce effort, the Denver Opportunity Youth Initiative to help prepare our community.