2015 Mid-Year Economic Update

Transcription

1 BROOMFIELD Economic Development 2015 Mid-Year Economic Update Provided by: Broomfield Economic Development One Descombes Drive Broomfield, CO Prepared by: Development Research Partners, Inc West Belleview Ave, Ste 100 Littleton, Colorado

2 2015 Mid-Year Overview The City and County of Broomfield reported positive economic indicators through the first half of 2015, with growth in employment, consumer activity, and the commercial real estate market. Total employment in Broomfield rose 1.8 percent between the fourth quarters of 2013 and 2014, representing the addition of 631 jobs during the period. The unemployment rate fell to 3.9 percent in the second quarter of 2015, recording the lowest second quarter unemployment level since the second quarter of 2007 when the rate was 3.3 percent. Consumer activity in Broomfield during the fourth quarter of 2014 increased, with total retail sales rising 14 percent compared with the previous year s level. Businesses in Broomfield recorded an additional $92 million in retail sales during the period. Consumer confidence in the Mountain Region rose over 20 percent between the second quarters of 2014 and Home sales activity recorded strengthening trends between the second quarters of 2014 and 2015 in Broomfield. The single-family detached market recorded a 7.4 percent increase in the average sales prices over-the-year, while the single-family attached market recorded a 10 percent increase. The apartment vacancy rate fell from 9.2 percent in the first quarter 2015 to 5.4 percent in the second quarter of The vacancy rate fell in each of the three commercial property types between the second quarters of 2014 and 2015, while office and industrial space reported increases in the average lease rate. ECONOMIC HEADLINES Forbes ranked Denver the nation s best place for business and careers, while Fort Collins ranked 10th. The Denver metropolitan area ranked number one for the first time, rising from fourth place on the 2014 list. The company stated that the area is attractive for its diverse economy, highly educated labor force, and outdoor recreational opportunities. Raleigh, N.C. was ranked second followed by Portland, Ore., Provo, Utah, and Atlanta, Ga. Area Development magazine ranked the country s cities for economic and job growth in their annual Leading Locations for 2015 list. The list ranked the Denver-Aurora-Broomfield metropolitan statistical area (MSA) first, the Greeley MSA third, and the Boulder MSA ninth. The report analyzed 373 MSAs across 21 economic and workforce indicators including unemployment rates, wage growth, and job growth. A spokesperson for the magazine stated that the leading locations are MSAs that have invested in themselves to create skilled workers and pro-business environments and that many of the areas have strong educational assets. The latest Fortune 500 list included nine Colorado companies among the nation s largest public and private corporations, with two located in Broomfield. Ball Corp. was the highest ranked Broomfield company at 332nd with $8.6 billion in revenue and 14,500 employees. Level 3 Communications Inc. ranked 401st on the list and recorded $6.8 billion in revenue and 13,500 employees. NerdWallet ranked Boulder the third-best place in the country for college graduates in STEM fields, while the Fort Collins-Loveland MSA ranked 18th and the Denver- Aurora MSA ranked 19th. The company ranked the country s 354 largest metropolitan areas based on the number of STEM employers per 1,000 total jobs, the average annual salary for STEM jobs, and median gross rent. Huntsville, Ala. ranked first followed by San Jose-Sunnyvale-Santa Clara, Calif. TransFirst LLC, one of the nation s largest secure-payment processors, plans to hire 100 employees at its Broomfield and Aurora locations. The 2015 Leading Lights Awards were announced and Brocade Communication Systems Inc. was selected as the winner for two of the 24 categories. The Leading Lights program, which is the communications industry s leading awards program, focuses on next-generation communications technologies, applications, services, and strategies. Brocade Communications was named the Best New Product for mobile, which is awarded to a company that has developed a potentially market-leading product that enables the deployment of profitable next-generation mobile services. The company also received the Most Innovative SDN Deployment Strategy for a vendor, which is awarded to the technology vendor that has devised the most innovative softwaredefined networking (SDN) product strategy during the past year Mid-Year Economic Report

3 Economic Dashboard BUSINESSES EMPLOYMENT LABOR FORCE UNEMPLOYMENT 2,435 Up 0.5% from 3Q ,936 Up 1.8% from 4Q ,788 Up 0.6% from 2Q % Down 0.4 percentage points from 2Q 2014 CONSUMER CONFIDENCE RETAIL SALES 96.2 Up 15.3 % from 2Q 2014 $747MM Up 14% from 4Q Units Down 60.3% from 2Q 2014 RESIDENTIAL BUILDING PERMITS OFFICE VACANCY 7.6% Down 4.8 percentage points from 2Q 2014 INDUSTRIAL VACANCY 4.3% Down 1.1 percentage points from 2Q 2014 RETAIL VACANCY 11.6% Down 1.7 percentage points from 2Q Mid-Year Economic Report 3

4 Business, Employment, and Wages BUSINESS The City and County of Broomfield had over 2,430 businesses during the fourth quarter of 2014, as shown in Table 1.1, an increase of 5.5 percent from the previous year. The area welcomed an additional 126 businesses between the fourth quarters of 2013 and Nearly one-third of businesses in the City and County of Broomfield are in the professional and business services supersector, as illustrated in Table 1.2, which reported an 8 percent increase in total businesses over-the-year. The financial activities supersector reported significant growth during the period, rising 10.3 percent or 24 additional businesses. The retail trade and the information sectors reported the only over-the-year declines in businesses, falling 4.8 percent and 3.8 percent, respectively. Table Business and Employment Indicators by Supersector QUARTERLY BUSINESS COUNT CITY AND COUNTY OF BROOMFIELD AVERAGE WEEKLY WAGE QUARTERLY EMPLOYMENT LEVEL METRO DENVER QUARTERLY EMPLOYMENT LEVEL 4Q14 4Q13 4Q14 4Q13 4Q14 4Q13 4Q14 4Q13 Total All Industries 2,435 2,309 $1,415 $1,367 34,936 34,305 1,511,877 1,453,265 Private Sector Mining & Logging 9 7 $2,365 $2, ,367 13,439 Construction $1,265 $1,143 1,431 1,402 84,217 76,527 Manufacturing $1,976 $1,786 4,876 4,852 83,854 81,005 Wholesale Trade $1,853 $1,982 1,243 1,234 74,580 71,443 Retail Trade $489 $463 4,790 4, , ,232 Transportation and Warehousing $1,055 $1, ,274 49,725 Information $2,347 $2,300 3,558 3,510 52,620 52,471 Financial Activities $1,430 $1,404 1,445 1, , ,010 Professional & Business Services $1,821 $1,807 9,818 9, , ,264 Education & Health Services $769 $770 2,178 2, , ,808 Leisure & Hospitality $387 $362 3,394 3, , ,207 Other Services $662 $ ,225 43,372 Government $988 $976 1,277 1, , ,570 Note: Industry data may not add to all-industry total due to rounding, suppressed data, and employment that cannot be assigned to an industry. Source: Colorado Department of Labor and Employment, Labor Marketing Information. Quarterly Census of Employment and Wages (QECW) Table Changes in Number of Businesses in Broomfield s Top Supersectors 4Q14 3Q14 4Q13 % OF TOTAL QUAR- TERLY CHANGE YEARLY CHANGE ANNUAL CHANGE Total All Industries 2,435 2,423 2, % 5.5% 126 Professional & Business Services % 1.6% 8.0% 58 Retail Trade % -2.3% -4.8% -13 Financial Activities % 1.6% 10.3% 24 Education & Health Services % 1.9% 8.2% 16 Wholesale Trade % -1.4% 2.0% Mid-Year Economic Report

5 Business, Employment, and Wages WAGES Workers across all industries in Broomfield earned an average weekly wage of $1,415 during the fourth quarter of 2014, as shown in Figure 1.3, an increase of 3.5 percent compared with the fourth quarter This increase represented an additional $48 in earnings per week. Mining and logging employees earned the highest wage ($2,365) during the fourth quarter of 2014 and reported a 4.6 percent increase over-the-year. Workers in the retail trade sector and leisure and hospitality supersector earned the lowest wages of all 13 supersectors during the period. Construction sector workers recorded the largest over-the-year increase in wages, rising 10.7 percent. The manufacturing sector also reported significant growth (+10.6 percent) in wages during the period. Figure 1.3 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 $1,583 Average Weekly Wage (All Industries) $1,236 $1,252 $1,367 $1,689 $1,276 $1,288 $1,415 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Source: Colorado Department of Labor and Employment, Labor Market Information. Quarterly Census of Employment and Wages (QCEW). EMPLOYMENT Employment in Broomfield increased 1.8 percent between the fourth quarters of 2013 and 2014, representing an additional 631 jobs, as shown in Figure 1.4. The transportation, warehousing, and utilities supersector reported the largest over-the-year increase in employment, rising percent or 109 additional jobs. The professional and business services supersector, the largest supersector by employment, generated the most positions during the period, with 295 new employees. The retail trade and leisure and hospitality supersectors reported the only over-the-year declines in employment, falling 3.1 percent and 0.1 percent, respectively. Figure ,500 35,000 34,500 34,000 33,500 33,000 32,500 32,000 33,004 34,042 Broomfield Employment (All Industries) 34,361 34,305 33,556 34,295 34,927 34,936 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Source: Colorado Department of Labor and Employment, Labor Market Information. Quarterly Census of Employment and Wages (QCEW). The Metro Denver area continued to record strong employment growth across all sectors, with overall employment rising 4 percent between the fourth quarters of 2013 and The mining and logging sector reported the largest increase in employment during the period, rising 14.3 percent or 1,930 jobs. The information supersector recorded the smallest growth in employment over-the-year, increasing 0.3 percent over-the-year and adding 149 jobs Mid-Year Economic Report 5

6 Business, Employment, and Wages LABOR FORCE AND UNEMPLOYMENT The City and County of Broomfield had a labor force of 33,790 people during the second quarter of 2015, as shown in Figure 1.5, representing 2.1 percent of the total Metro Denver labor force. The labor force in Broomfield increased 0.6 percent between the second quarters of 2014 and This represented an additional 200 people working or looking for a job. The unemployment rate in Broomfield fell 0.4 percentage points over-the-year to 3.9 percent in the second quarter of 2015, as shown in Figure 1.6. Broomfield recorded the third lowest unemployment rate of the seven Metro Denver counties during the period. Figure 1.5 Labor Force Participants 34,000 33,800 33,600 33,400 33,200 33,000 32,800 32,600 33,136 Broomfield Labor Force The unemployment rate in Metro Denver fell to 4.1 percent during the second quarter of 2015, a decline of 0.8 percentage points over-the-year. The Metro Denver labor force increased 0.3 percent during the period. The Colorado labor force increased 0.3 percent and the unemployment rate fell 0.8 percentage points to 4.4 percent. The national unemployment rate fell to 5.3 percent, while the labor force rose 1 percent. 33,589 33,827 33,778 33,625 33,788 1Q Q Q Q Q Q 2015 Quarter Source: Colorado Department of Labor and Employment, Labor Market Information; U.S. Bureau of Labor Statistics. Figure 1.6 Unemployment Rate Broomfield Metro Denver Colorado U.S. Unemployment Rate 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 5.3% 4.4% 4.1% 3.9% 1Q Q Q Q Q Q 2015 Quarter Source: Colorado Department of Labor and Employment, Labor Market Information; U.S. Bureau of Labor Statistics Mid-Year Economic Report

7 Consumer Activity CONSUMER CONFIDENCE The Conference Board s National Consumer Confidence Index continued to report significant increases through the second quarter of 2015, as shown in Figure 2.1, rising 15.3 percent over-the-year to 96.2 for the U.S. index. However, the U.S. index recorded a 5 percent decrease in consumer confidence between the first and second quarters of The second quarter 2015 level is the highest second quarter national consumer confidence level since the second quarter of 2007 when the index was at The Mountain Region index, which includes Colorado, also increased compared with the second quarter of The Mountain Region index rose to 106.8, an over-the-year increase of 20.4 percent. Similar to the national index, the mountain index also fell over-the-quarter, declining 2.4 percent. The high level of consumer confidence signals expectations for continued improvement and growth in the local economy. Figure 2.1 Consumer Confidence Index Mountain U.S = RETAIL SALES Total retail sales for Broomfield reached nearly $747 million during the fourth quarter of 2014, as shown in Table 2.2. Broomfield recorded a 14 percent increase in retail sales over-the-year, representing an additional $92 million in retail sales. Of the seven Metro Denver counties, Broomfield recorded the largest increase in retail sales between the fourth quarters of 2013 and Retail sales in Broomfield represent 2.4 percent of Metro Denver s retail sales. Table 2.2 Source: The Conference Board. METRO DENVER TOTAL RETAIL SALES ($000S) 4Q Q 2013 YEAR OVER YEAR % CHANGE Adams $5,987,434 $6,103, % Arapahoe $6,035,652 $5,711, % Boulder $3,151,331 $3,048, % Broomfield $746,673 $654, % Metro Denver reported a 1.9 percent increase in Denver $7,971,565 $7,786, % retail sales between the fourth quarters of 2013 and Douglas $2,339,144 $2,417, % 2014, collecting an additional $580 million in retail Jefferson $4,570,194 $4,499, % sales. Five of the seven counties reported increases in retail sales over-the-year. Arapahoe County Metro Denver $30,801,993 $30,222, % reported the largest increase in sales volume, Source: Colorado Department of Revenue collecting an additional $324 million. The City and County of Denver recorded the highest level of retail sales of the seven counties, collecting nearly $8 billion in sales during the period Mid-Year Economic Report 7

8 Consumer Activity SALES TAX COLLECTIONS Sales tax collections throughout Broomfield were 7.1 percent higher during the first quarter of 2015 than the first quarter of 2014, as shown in Figure 2.3. The first quarter was 21.4 percent lower than the fourth quarter, with approximately $11.5 million in sales tax collections. This decline in sales tax collection is a typical trend following the end of the holiday season. (Note: The two charts, Total Retail Sales and Sales Tax Collections, do not necessarily reflect the same tax base, so trends may differ.) HOTEL AND LODGING Figure 2.3 Sales Tax Receipts (Millions) $16 $14 $12 $10 $8 $6 $4 $2 $0 Sales Tax Collections Q 2Q 3Q 4Q Quarter Source: The City and County of Broomfield, Finance Department According to the Rocky Mountain Lodging Report, the Highway 36 corridor recorded an occupancy rate of 89.9 percent in June 2015, as shown in Figure 2.4. This rate was 0.6 percentage points higher than the prior year s occupancy rate. The average room rate for the Highway 36 corridor market was $ per night in June, a 6.2 percent increase from the previous year ($ per night). The average occupancy rate in Metro Denver increased to 88.7 percent in June, up from 86.4 percent in the same month last year, and the average room rate rose 7 percent to $ per night. Figure 2.4 Hotel and Lodging Indicators for the US 36 Corridor Average Daily Room Rate Occupancy Rate $ % Average Room Rate $120 $105 $90 $75 $60 $45 80% 60% 40% Average Occupancy Rate $30 20% $15 $- 0% Source: Colorado Hotel and Lodging Association,Rocky Mountain Lodging Report Mid-Year Economic Report

9 Real Estate EXISTING HOME SALES Existing home sales in the Broomfield single-family detached market declined slightly between the second quarters of 2014 and Broomfield recorded 267 sales in the single-family detached market, a decline of 1.1 percent over-theyear or three fewer homes sold. The average sales price for a single-family detached home was $432,050, an increase of 7.4 percent over-the-year or an additional $29,950. Home sales in the single-family attached market rose 80.5 percent during the period, selling an additional 33 homes. The average sales price for a single-family attached home was $273,790 during the second quarter of 2015, an increase of 10 percent over-the-year or an additional $24,970. Of the seven Metro Denver counties, Broomfield recorded the fourth highest average sale price in the single-family detached market and the third highest average sale price in the single-family attached market. Existing homes sales in Metro Denver followed similar trends to Broomfield during the second quarter of 2014 in both the single-family detached and single-family attached markets. Sales of single-family detached homes decreased 1.4 percent between the second quarters of 2014 and 2015, while single-family attached home sales increased 6 percent. The average sales price of single-family detached homes in Metro Denver increased 12 over-the-year to $418,110, adding $44,890 to the average sales price. The average sales price of single-family attached homes rose 13.8 percent over-theyear to $259,020, adding $31,480 to the average sales price. Table 3.1 METRO DENVER COUNTY MARKETS METRO DENVER TOTAL Adams Arapahoe Boulder Broomfield Denver Douglas Jefferson Home Sales Single-Family Detached 2Q ,803 2, ,183 1,984 2,161 11,064 2Q ,735 2, ,327 2,019 2,159 11,226 Single-Family Attached 2Q , , ,497 2Q , , ,242 Average Sold Price Single Family Detached 2Q 2015 $305,335 $405,272 $525,554 $432,048 $463,127 $468,592 $418,836 $418,106 2Q 2014 $262,592 $376,445 $456,417 $402,099 $400,965 $425,804 $363,741 $373,741 Single-Family Attached 2Q 2015 $193,154 $204,333 $306,196 $272,792 $336,434 $269,275 $213,524 $259,019 2Q 2014 $159,190 $174,912 $267,560 $248,832 $297,220 $238,260 $181,890 $227,542 APARTMENTS Source: REcolorado The City and County of Broomfield reported a vacancy rate of 5.4 percent during the second quarter of 2015, as shown in Table 3.2 on the next page, an increase of 0.9 percentage points compared with the prior year. However, the vacancy rate was 3.8 percentage points below the first quarter 2015 level of 9.2 percent. The large decline was due to a large number of new units coming on the market during the first quarter of 2015 and leasing up quickly during the second quarter. The average rental rate rose 10.2 percent over-the-year, adding $130 per month to the rental rate. The average rental rate was also 6.4 percent higher than the previous quarter s level ($1,314). Figure 3.2 shows the historical apartment vacancy rates for Broomfield and Metro Denver. The vacancy rate in Metro Denver was 4.5 percent during the second quarter of 2015, falling 0.2 percentage points below the previous year s level. The vacancy rate was also 0.4 percentage points lower than the first quarter 2014 level of 4.9 percent. The average rental rate in Metro Denver rose 13.3 percent over-the-year, adding $148 per month to the rental rate. The average rental rate was also 5.1 percent above the previous quarter s level ($1,204) Mid-Year Economic Report 9

10 Real Estate Table 3.2 Vacancy Rate AVERAGE APARTMENT RENTS AND VACANCY, SECOND QUARTER 2015 Efficiency 1 Bed 2 Bed, 1 bath 2 Bed, 2 bath 3 Bed Other All City and County of Broomfield 5.4% $1,181 $1,271 $1,193 $1,663 $1,666 $1,698 $1,398 Metro Denver 4.5% $1,004 $1,121 $1,192 $1,493 $1,788 $1,406 $1,265 Figure 3.3 Source: Denver Metro Apartment Vacancy and Rent Survey Broomfield vs. Metro Denver Apartment Vacancy Broomfield Metro Denver 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Q Q BUILDING PERMITS Q Q Q The City and County of Broomfield reported a 60.3 percent decline in total building permits between the second quarters of 2014 and 2015, as shown in Table 3.4. The single-family detached market recorded an 18 percent over-the-year decline, representing 25 fewer permits issued during the period. The average valuation for single-family detached homes rose 5.8 percent, representing an additional $19,280 in valuation over-the-year. The single-family attached market recorded significant improvements over-the-year, recording an 850 percent increase in permits or 34 additional units. The market also recorded a 13.5 percent increase in the average valuation, representing an additional $17,780. The City and County of Broomfield issued no apartment or condominium permits during the second quarter of 2015, falling from the 240 units permitted during the second quarter Table 3.4 BROOMFIELD RESIDENTIAL BUILDING PERMITS SINGLE-FAMILY DETACHED SINGE-FAMILY ATTACHED APARTMENTS AND CONDOMINIUMS TOTAL Units Average Valuation Per Unit Units Average Valuation Per Unit Permits Units Average Valuation Per Unit UNITS 2Q $349, $149, Q $330,220 4 $131, $105, Yr/Yr % Change -18.0% 5.8% 850.0% 13.5% % Source: The City and County of Broomfield, Building Division Q Q Q Q Q Q Source: Denver Metro Apartment Vacancy and Rent Survey Mid-Year Economic Report

11 Real Estate Metro Denver recorded a 29 percent increase in building permits between the second quarters of 2014 and The increase was attributed to a 60 percent increase in single-family attached units and a 45 percent increase in multi-family units. The single-family detached market also recorded an increase in permits issued over-the-year, rising 18 percent. There were 595 multi-family permits, 441 single-family detached permits, and 53 single-family attached permits issued during the second quarter of OFFICE MARKET The Broomfield office market had nearly 6.4 million square feet of space during the second quarter of The office market recorded declining vacancy rates, as shown in Table 3.5, and generally increasing average lease rates across all three office types during the second quarter of 2015 compared with the prior year. The vacancy rate for Class A office space fell 6.9 percentage points between the second quarters of 2014 and 2015 to 9.2 percent vacancy. The average lease rate of Class A space was $29.98 per square foot, an increase of 0.7 percent over-the-year. Class B office space recorded a 2.8 percentage point decline in vacancy and a 3.4 percent increase in the average lease rate during the period. The vacancy rate for Class C space fell 3.8 percentage points over-the-year, but the average lease rate fell 1 percent during the same period. Table 3.5 BROOMFIELD OFFICE REAL ESTATE MARKETS 2Q 2015 TOTAL EXISTING SQUARE FOOTAGE VACANCY RATES AVERAGE LEASE RATE (PER SQR. FOOT) 2Q15 2Q14 2Q15 2Q14 2Q15 2Q14 Office Broomfield Class A 3,067,131 3,067, % 16.1% $29.98 $29.77 Class B 3,096,605 3,096, % 9.0% $22.90 $22.14 Class C 192, , % 6.3% $17.67 $17.84 Metro Denver Class A 61,049,960 60,290, % 11.3% $29.14 $27.77 Class B 92,920,216 92,424, % 11.8% $20.75 $19.80 Class C 21,499,07 21,490, % 5.9% $16.51 $15.79 Source: CoStar, Inc. The Metro Denver office market followed similar trends as the City and County of Broomfield between the second quarters of 2014 and The vacancy rate for Class A office space fell 1 percentage point over-the-year to 10.3 percent vacancy and the average lease rate rose 4.9 percent to $29.14 per square foot. This average lease rate was $0.84 per square foot less than the Broomfield rate. Class B office space recorded a vacancy rate of 10.4 percent, 1.4 percentage points lower than the previous year, and the average lease rate rose 4.8 percent during the period. Class C space in Metro Denver reported a 0.2 percentage point decline in the vacancy rate over-the-year and a 4.6 percent increase in the average lease rate. INDUSTRIAL MARKET The Broomfield industrial market consisted of over 3.4 million square feet of space during the second quarter of The industrial market recorded a vacancy rate of 4.3 percent during the second quarter of 2015, as shown in Table 3.6 on the next page, a 1.1 percentage point decline compared with the second quarter The average lease rate for the industrial market was $5.56 per square foot, an increase of 3.2 percent over-the-year. The Broomfield average lease rate was $1.07 lower than the Metro Denver average lease rate during the period. The Metro Denver industrial market had nearly million square feet of space during the second quarter of The industrial market vacancy rate fell 0.8 percentage points between the second quarters of 2014 and 2015 to 2.9 percent. This was 1.4 percentage points lower than the Broomfield vacancy rate during the period. The average lease rate for industrial space in Metro Denver was $6.63 per square foot during the second quarter of 2015, an increase of 18.4 percent compared with the previous year s level Mid-Year Economic Report 11

12 Real Estate Table 3.6 BROOMFIELD INDUSTRIAL REAL ESTATE MARKETS 2Q 2015 TOTAL EXISTING SQUARE FOOTAGE VACANCY RATES AVERAGE LEASE RATE (PER SQR. FOOT) 2Q15 2Q14 2Q15 2Q14 2Q15 2Q14 Industrial Broomfield 3,408,600 3,408, % 5.4% $5.56 $5.39 Metro Denver 205,795, ,075, % 3.7% $6.63 $5.60 Source: CoStar, Inc. RETAIL MARKET The retail market in Broomfield had over 4.7 million square feet of space during the second quarter of 2015, representing less than 3 percent of space in Metro Denver. The retail market vacancy rate was 11.6 percent during the second quarter of 2015, as shown in Table 3.7, a 1.7 percentage point decline in vacancy compared with the previous year s level. The Broomfield vacancy rate was 6.6 percentage points higher than the Metro Denver vacancy rate during the period. The average lease rate for the retail market in Broomfield fell 25.4 percent over-the-year to $12.18 per square foot. The retail market in Metro Denver consisted of over million square feet of space during the second quarter of 2015, an increase of 0.7 percent over the previous year s level. The retail vacancy rate fell 0.7 percentage points between the second quarters of 2014 and 2015 to 5 percent. The average lease rate for retail space in Metro Denver was $15.78 per square foot during the period, an increase of 2 percent over-the-year. The average lease rate for retail space in Metro Denver was $3.60 per square foot higher than the Broomfield level during the second quarter of Table 3.7 BROOMFIELD RETAIL REAL ESTATE MARKETS 2Q 2015 TOTAL EXISTING SQUARE FOOTAGE VACANCY RATES AVERAGE LEASE RATE (PER SQR. FOOT) 2Q15 2Q14 2Q15 2Q14 2Q15 2Q14 Retail Broomfield 4,729,118 4,725, % 13.3% $12.18 $16.33 Metro Denver 160,917, ,798, % 5.7% $15.78 $15.47 Source: CoStar, Inc. COMMERCIAL BUILDING PERMITS There were three commercial real estate permits issued during the second quarter of 2015, representing 164,270 square feet of space, as shown in Table 3.8. The Colorado General Hospital project is valued at $26.6 million, the most expensive of the projects. The hospital will be located in the Arista development, have 52-beds, provide emergency treatment, and in-patient and out-patient surgical services. The Offices at Arista Place are valued at $12 million and span 87,320 square feet, the largest building permitted by square footage. The building will be five stories tall and will be located near the Broomfield Event Center. There was also a dog washing facility that was permitted during the period. Table 3.8 COMMERCIAL REAL ESTATE PERMITS, 2Q 2015 Project Description Valuation Total Square Footage Colorado General Hospital $26,606,174 76,770 The Offices at Arista Place $12,000,000 87,319 Dog Wash Facility $21, Totals $38,627, ,269 Source: The City and County of Broomfield, Building Division Mid-Year Economic Report

13 BROOMFIELD Economic Development Provided by: Broomfield Economic Development One Descombes Drive Broomfield, CO Prepared by: Development Research Partners, Inc West Belleview Ave, Ste 100 Littleton, Colorado August 2015