quarterly economic report third quarter 2017 - jeffcoedc · 2017-10-31 · jefferson county...
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Jefferson County, Colorado
Quarterly Economic Report – Third Quarter 2017
Jefferson County Quarterly Economic Report – Third Quarter 2017
Page 1
1.7%
Apartment Vacancy Rate
Apartment Average Lease Rate
Up 0.6 percentage points from
2Q 2016
Up 3.2% from 2Q 2016
4.7%
Industrial Warehouse Vacancy Rate
Flex R&D Vacancy Rate 4.0%
Flex R&D Average Lease Rate $10.24
Retail Average Lease Rate $14.38
Retail Vacancy Rate 4.6%
Office Class A Average Lease Rate $26.42
Industrial Warehouse Average Lease Rate $9.09
Office Class A Vacancy Rate 10.2%
$1,371
Residential Building
Permits
431Down 55.2% from 2Q 2016
Single-Family Detached Average Price$463,359
Up 8.9% from 2Q 2016
Single-Family Attached Average Price$255,379
Up 10.7% from 2Q 2016
Unemployment Rate2.2%
Down 0.9 percentage points
from 2Q 2016
Existing Home Sales3,177
Up 5% from 2Q 2016
2017Third Quarter
Quarterly Economic Summary
Employment227,550
Down 0.6% from 1Q 2016
220,000
225,000
230,000
235,000
240,000
1Q16 2Q16 3Q16 4Q16 1Q17
0.0% 1.0% 2.0% 3.0% 4.0% 5.0%
U.S.
Colorado
Metro Denver
Jefferson County
2Q 2017
-
600
1,200
1,800
2,400
2Q16 2Q17
SFA
SFD
$200,000
$300,000
$400,000
$500,000
2Q16 3Q16 4Q16 1Q17 2Q17
SFA SFD
3.5%
4.0%
4.5%
5.0%
$1,000
$1,100
$1,200
$1,300
$1,400
2Q16 3Q16 4Q16 1Q17 2Q17
0
300
600
900
1,200
2Q16 3Q16 4Q16 1Q17 2Q17
0.0%
4.0%
8.0%
12.0%
Class A
Office
Industrial Flex Retail
2Q16 2Q17
$0.00 $6.00 $12.00 $18.00 $24.00
Retail
Flex
Industrial
Class A Office
2Q16 2Q17
Jefferson County Quarterly Economic Report – Third Quarter 2017
Page 2
Jefferson County Economic Headlines
Rankings
Golden and Arvada ranked among the top 10 best cities in Colorado for raising a family, according to
SmartAsset. The ranking was based on metrics in 10 categories ranging from median home values to child
care costs. Golden (first) and Arvada (sixth) received accolades for rising median home values, low
unemployment rates, and low crime rates.
Arvada, Westminster, and Lakewood ranked among the 2017 best real estate markets in the nation,
according to WalletHub. Arvada ranked 13th, Westminster ranked 28th, and Lakewood ranked 41st. The
company compared 300 cities of varying sizes across 21 key indicators of housing-market attractiveness and
economic strength.
The Colorado School of Mines was the highest ranked school in the state on the U.S. News & World
Report’s annual list of the nation's 220 top national universities. The Colorado School of Mines tied two
other major universities at No. 75 on this year's list, up from No. 82 in the 2016 list. U.S. News bases its
annual rankings on such factors as assessments by peer universities and high school counselors, student
retention and graduation rates, and faculty resources. Princeton University ranked first, followed by Harvard
University and the University of Chicago.
Company Announcements
Trimble is expanding its operations in Jefferson County, and has begun construction on a second building at
its campus in Westminster. The expansion project has the potential to create up to 660 new high paying jobs
- more than doubling its existing workforce and making it one of Jefferson County's largest primary
employers. Once completed, the Westminster campus will be Trimble's largest employment center and will
serve as a central business hub for the company's core market segments. The new 120,000 square-foot facility
is scheduled for completion in late 2018.
Preliminary construction is underway at Lockheed Martin’s new $350 million Gateway Center facility that
will produce next-generation satellites. The new facility, slated for completion in 2020, is located on the
company’s Waterton Canyon campus in Jefferson County. Lockheed Martin has added more than 750 jobs
to its Colorado workforce since 2014, and currently has about 350 job openings in the Metro Denver area
alone.
Health care automation firm Swisslog Healthcare Solutions is relocating and expanding its operations in
Westminster. The company expects the expansion will create 173 high-paying jobs with an average salary of
$86,500, and bring $1.8 million in capital investment to the county over the next couple of years.
Plans are underway for Golden-based ski retailer Powder7 to build a new 18,000-square-foot facility. The
building will include a 13,400-square-foot warehouse, retail and office space, and two parking lots for
employees and customers.
Special Aerospace Services opened a new 25,000-square-foot automated machining and specialized
manufacturing facility in Arvada. The firm plans to expand manufacturing activities and will more than
double its workforce to 30 people in the next two years.
The $250 million Jefferson Parkway project—which has been in the planning phase for more than a
decade—is expected to take another step forward in coming months when it submits plans to the Colorado
Department of Transportation by the end of 2017. The project will connect the proposed toll road with the
Colorado highway system at three junctions: Highway 93, Highway 72, and Highway 128. The 10-mile
proposed toll road fills in the gap in Metro Denver’s beltway between the end of C-470 near Golden and the
start of the Northwest Parkway near Broomfield.
Jefferson County Quarterly Economic Report – Third Quarter 2017
Page 3
Goldberg Brothers announced it is relocating and expanding its operations into 95,520 square feet in the
Ken Caryl Business Center, in unincorporated Jefferson County. The manufacturing company has plans to
create 30 jobs and add $2 million in personal property.
Sprouts Farmers Market opened its first Arvada location in September 2017. The 28,000-square-foot store
is the chain’s 32nd Colorado location and will provide natural and organic food.
BPL Plasma opened its 37th plasma donation center in Lakewood. The new center will provide cutting-edge
pharmaceutical therapies, will support about 35 new jobs in its first year of operation, and up to 70 new jobs
in the future as its donor base expands. Each center infuses up to $5 million into the local economy each year
through fees paid to donors.
Golden-based Outward Bound USA received a $5 million donation from the S.D. Bechtel Jr. Foundation to
open a new lab to train instructors and create new curriculum. The Outward Bound Professional Learning Lab
will establish a process to measure student outcomes and assess their impact.
CardioNXT, a Westminster medical device company, raised $2.1 million in financing from several
investors. The company makes technology targeting the understanding of cardiac arrhythmias such as atrial
fibrillation. The funding will help the company perform a RADAR clinical trial to bring their technology
closer to market.
Gemini Beer Co., a wholesaler of bottled beers, will open a taproom next to the new light rail station in
Westminster. The company will be the first tenant of a ground-up, mixed-use project planned near the
Westminster Station. Gemini will occupy 3,000 square feet on the bottom floor of the development and
expects to hire 10 employees.
Denver Beer Co. opened their new Arvada location, marking the brewing company’s second taproom. The
4,350-square-foot brewery and taproom occupies the former Craig Chevrolet location at 5768 Olde
Wadsworth Blvd. It will feature seven-barrel beer-making capacity and a permanent food truck.
Metropolitan Region and State Economic Headlines
Colorado ranked fourth after Nevada, Utah, and Florida, according to the Economic Innovation Group’s
Index of State Dynamism. Colorado had the highest rate of job turnover, ranked high in the share of workers
employed in new companies (16 years or newer), and remained high for in-migration of workers.
Colorado ranked No. 6 on CNBC’s list of “America’s Top States for Business”, down from No. 3 in 2016
and No. 4 in 2015. Of the 10 ranking categories, Colorado’s highest rankings were in quality of workforce
(#4), technology and innovation (#7), and business friendliness (#8).
Colorado ranked No. 6 on WalletHub’s annual “Best State Economies” list, No. 4 for startup activity, and
is in a four-way tie for No. 1 for lowest unemployment rate. The survey of all 50 states and the District of
Columbia also found Colorado No. 3 for overall economic health, No. 5 for innovation potential, No. 5 for
highest GDP growth, No. 5 for highest nonfarm payroll, and No. 15 for economic activity.
Colorado ranked eighth for attractiveness to the aerospace manufacturing industry in a report from
PricewaterhouseCoopers. Colorado was ranked No. 35 for cost; No. 3 for labor; No. 7 for infrastructure; No.
28 for industry; No. 30 for economy; and No. 2 for tax policy. The top states for aerospace manufacturing
included Georgia, Michigan, and Arizona.
Denver ranked among the top 10 in the nation for talent, capital, and growth opportunities for
technology, according to real estate services firm Cushman & Wakefield. In the Tech Cities 1.0 report, San
Jose-Silicon Valley is ranked No. 1, followed by San Francisco, Washington, D.C., and Boston. While
Jefferson County Quarterly Economic Report – Third Quarter 2017
Page 4
Denver is not the headquarters for many big technology companies, it has continued to see larger, more
established firms opening offices in Denver, including Google, Apple, and Amazon.
Employment Activity
Business Count, Average Weekly Wage, and Employment by Supersector
The number of businesses throughout Jefferson County increased 2.6 percent between the first quarters of 2016
and 2017, a net gain of 505 businesses. Ten of the 13 supersectors reported growth in the number of businesses,
with the largest percentage increase in the other services sector, recording a 14.3 percent increase or a gain of 222
new businesses. Education and health services also reported a significant increase in businesses, rising 6.1 percent
over-the-year, and creating 123 new businesses. Three supersectors—other services, education and health
services, and professional and business services—added the most new businesses over-the-year, representing
nearly 91 percent of the over-the-year absolute increase in the number of businesses. Mining and logging and
retail trade were the only supersectors to shed businesses during the period, decreasing 6.9 percent and 1.8
percent, respectively. The government sector was the only sector to maintain the same business levels compared
with one-year ago.
The average weekly wage for Jefferson County was $1,126 during the first quarter of 2017, rising 9.9 percent
over-the-year. The average weekly wage for Jefferson County was highest in the wholesale trade sector, where the
average individual earned $2,036 per week. This sector has maintained the highest average weekly wage for the
last three consecutive quarters. Twelve of the 13 supersectors recorded over-the-year increases in the average
weekly wage, led by the largest gains in the mining and logging (+25.8 percent) and information (+19.5 percent)
supersectors. The lowest average wage was in the leisure and hospitality supersector, with an average weekly
wage of $385. Transportation, warehousing, and utilities (-3 percent) was the only supersector to record a decline
in wages over-the-year.
1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017
19,453 19,958 $1,025 $1,126 228,819 227,550 1,543,542 1,575,561
Mining & Logging 144 134 $1,150 $1,447 907 784 12,693 12,409
Construction 2,056 2,101 $1,044 $1,126 14,094 15,026 87,354 91,831
Manufacturing 511 517 $1,873 $1,991 18,728 18,655 85,642 86,332
Wholesale Trade 1,534 1,553 $1,915 $2,036 7,172 6,919 76,196 77,413
Retail Trade 1,787 1,755 $549 $596 28,906 28,809 151,365 152,371
Transp., Warehousing & Utilities 284 288 $1,502 $1,457 3,343 3,620 52,024 55,238
Information 303 307 $1,471 $1,758 4,327 4,108 53,975 54,406
Financial Activities 2,135 2,156 $1,212 $1,348 11,172 11,235 107,109 110,081
Professional & Business Services 5,504 5,617 $1,357 $1,572 36,679 36,847 283,673 288,599
Education & Health Services 2,001 2,124 $783 $909 36,094 32,984 200,883 201,568
Leisure & Hospitality 1,449 1,457 $356 $385 25,562 25,582 168,095 173,003
Other Services 1,548 1,770 $667 $676 7,059 7,654 47,235 50,109
176 176 $1,070 $1,108 34,733 35,324 216,994 222,117
Total All Industries
Jefferson County Metro Denver
Average Weekly
Wage
Quarterly
Business Count
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 Market Information. Quarterly Census of Employment and Wages (QCEW).
Business and Employment Indicators by Supersector
Quarterly Employment
Level
Quarterly
Employment Level
Government
Private Sector
Jefferson County Quarterly Economic Report – Third Quarter 2017
Page 5
Jefferson County employment decreased 0.6 percent in the first quarter of 2017 compared with the prior year,
representing a decline of 1,269 jobs. Seven of the 13 supersectors reported employment increases over-the-year.
The other services supersector recorded the largest percentage increase in employment, which rose 8.4 percent or
595 jobs between the first quarters of 2016 and 2017. The largest supersector by employment—professional and
business services—recorded a 0.5 percent increase over-the-year and added 168 new jobs. The transportation,
warehousing, and utilities and construction supersectors also recorded significant employment growing, rising 8.3
percent and 6.6 percent, respectively. Employment declined in six of the 13 supersectors during the period,
ranging from a 13.6 percent decrease in mining and logging to a 0.3 percent decline in the retail trade supersector.
The largest absolute decline was in the education and health services supersector, decreasing by 3,110 jobs over-
the-period primarily as a result of a reclassification of workers to the other services sector.
Metro Denver recorded moderate employment growth between the first quarters of 2016 and 2017, rising 2.1
percent to nearly 1.6 million jobs. Twelve of the 13 supersectors in Metro Denver reported increases over-the-
year. The largest absolute increases in employment were in the government (2.4 percent) and professional and
business services (1.7 percent), creating 5,123 jobs and 4,926 jobs, respectively. Transportation, warehousing, and
utilities recorded the largest percentage increase in employment over-the-year, rising 6.2 percent. The mining and
logging supersector (-2.2 percent) recorded the only decline in employment during the period.
Jefferson County Quarterly Economic Report – Third Quarter 2017
Page 6
Labor Force and Unemployment
The Jefferson County unemployment rate
fell 0.9 percentage points between the
second quarters of 2016 and 2017 to 2.2
percent, the lowest level since 2000. The
county reported a 3 percent increase in the
labor force during the same period, with an
additional 9,440 individuals working or
looking for a job. Of the seven Metro
Denver counties, Jefferson County recorded the third-lowest unemployment rate and the fourth-largest over-the-
year decrease in the unemployment rate. Metro Denver’s unemployment rate fell at the same rate as Jefferson
County, decreasing 0.9 percentage points over-the-year to 2.3 percent. Metro Denver’s labor force also grew at
the same rate as Jefferson County’s rate of 3 percent over-the-year, adding 50,660 individuals working or looking
for jobs. Similar to Jefferson County, the second quarter 2017 unemployment rate was the lowest rate recorded
since 2000.
Colorado’s unemployment rate declined 1.1 percentage points over-the-year to 2.4 percent and the state’s labor
force rose 2.8 percent over-the-year. The unemployment rate in the U.S. declined 0.6 percentage points
between the second quarters of 2016 and 2017 to 4.2 percent, with a 0.8 percent increase in the labor force
over this period of time.
2Q 2016 2Q 2017Yr/Yr %
Change2Q 2016 2Q 2017
Jefferson County 315,594 325,031 3.0% 3.1% 2.2%
Metro Denver 1,686,591 1,737,248 3.0% 3.2% 2.3%
Colorado 2,884,896 2,966,778 2.8% 3.5% 2.4%
U.S. (000s) 159,141 160,378 0.8% 4.8% 4.2%
Labor Force Unemployment Rate
Sources: Colorado Department of Labor and Employment, Labor
Market Information; U.S. Bureau of Labor Statistics.
Jefferson County Quarterly Economic Report – Third Quarter 2017
Page 7
Consumer Activity
Consumer Confidence
The Consumer Confidence Index for the U.S.
increased between the first and second
quarters of 2017, reporting a level of 118.1
from the revised first quarter 2017 level of
117.5, a 0.5 percent increase over-the-quarter.
The U.S. Index also increased over-the-year,
increasing 24.5 percent between the second
quarters of 2016 and 2017. Consumer
confidence in the U.S. has increased over-the-
year for four consecutive quarters.
Colorado is included in the Mountain Region
Index and the area reported an increase in
consumer confidence between the first quarter
of 2017 and the second quarter of 2017,
reporting a level of 132.5 from the revised
first quarter 2017 level of 124.8, a 6.2 percent
increase over-the-quarter. The Mountain Region Index also reported an over-the-year increase of 29.7 percent. In
the Mountain Region, consumer confidence in the second quarter was at its highest level since 2006.
Lodging
The West Denver market ended the first half
of 2017 with a hotel occupancy rate of 74.9
percent, 1.2 percentage points higher than the
same time last year. The market’s average
room rate was $114.24 per night, 3.5 percent
higher than last year. Metro Denver reported a
hotel occupancy rate of 74.1 percent for the
first half of the year, 0.4 percentage points
higher than last year. The average room rate
for Metro Denver was $140.04 per night year-
to-date, $3.32 per night higher than the same
period one-year prior.
Residential Real Estate
The Ascent, an $86 million apartment project in Westminster, broke ground. The Ascent project is part of the
old Westminster Mall redevelopment that will include a mix of residential, office, and entertainment. The
Ascent will include 10 percent of its 255 units reserved for income-restricted tenants and 24,000 square feet of
ground-floor retail.
The city of Westminster partnered with Mile High Development, Koelbel and Company, and Longs Peak
Advisors to build a five-story, mixed-use affordable housing project in Downtown Westminster. Eaton Street
Apartments will contain 118 affordable housing units that will serve residents earning 60 percent or less of
the area median income. The project is slated for completion in late 2018 and will have four stories of
Jefferson County Quarterly Economic Report – Third Quarter 2017
Page 8
residential units over a ground floor common area and townhomes, as well as 22,000 square feet of retail
space.
Home Sales
Jefferson County’s housing market continued to show strong positive momentum. The number of single-family
detached homes sold increased 5.4 percent to 2,409 homes sold between the second quarters of 2016 and 2017.
Prices of single-family detached homes continued to appreciate, rising 8.9 percent to $463,359 during the period.
Among the seven counties in Metro Denver, Jefferson County recorded the third-highest number of homes sold
and reported the fifth-highest average sales price. The City and County of Denver posted the most homes sold
during the quarter, selling 2,667 homes, and reported an over-the-year increase of 1.8 percent. Boulder County
recorded the highest average sales price of $649,551, a 6.7 percent increase over-the-year. Four of the seven
counties in Metro Denver recorded an increase in the number of single-family detached homes sold over-the-year,
while the average sales price rose in all seven counties during this same period of time.
The number of single-family attached home sales in Jefferson County increased 3.9 percent between the second
quarters of 2016 and 2017, to 768 homes sold. The average sales price of a single-family attached home also
increased, recording a 10.7 percent increase to $255,379 during the same period. Among the counties across
Metro Denver, Jefferson County recorded the third-highest number of homes sold and reported the fifth-highest
average sales price in the single-family attached market. Arapahoe County posted the most single-family attached
homes sales (1,171 sales), while Boulder County reported the highest average sales price ($364,907) during the
second quarter. Four of the seven counties in Metro Denver recorded an increase in the number of single-family
attached homes sold over-the-year, while the average sales price rose in six of the seven counties during this same
period of time.
Apartment Market
Jefferson County tied with Douglas County for the second-lowest apartment vacancy rate of the six Metro Denver
county market groups for the second quarter of 2017. The Jefferson County vacancy rate rose 0.6 percentage
points between the second quarters of 2016 and 2017 to 4.7 percent vacancy and increased 0.5 percentage points
over-the-quarter. The Jefferson County vacancy rate was also 0.3 percentage points below the Metro Denver
average (5 percent). The average rental rate in the county for all apartment types ($1,371) increased 3.2 percent
Adams Arapahoe Boulder Broomfield Denver Douglas Jefferson
Home Sales
Single-Family Detached
2Q 2017 1,853 2,469 1,247 305 2,667 1,962 2,409 12,912
2Q 2016 1,913 2,367 1,279 321 2,619 1,837 2,286 12,622
Single-Family Attached
2Q 2017 484 1,171 290 40 1,140 360 768 4,253
2Q 2016 492 1,202 297 27 1,127 308 739 4,192
Average Sold Price
Single-Family Detached
2Q 2017 $339,378 $434,173 $649,551 $465,929 $527,377 $529,165 $463,359 $481,250
2Q 2016 $312,358 $403,250 $608,512 $440,635 $466,983 $485,310 $425,359 $440,396
Single-Family Attached
2Q 2017 $230,310 $235,874 $364,907 $292,145 $331,560 $322,161 $255,379 $281,043
2Q 2016 $210,180 $212,098 $370,226 $259,730 $290,101 $288,837 $230,599 $253,253
Metro
Denver
Total
Metro Denver County Markets
Source: ColoradoComps.
Existing Home Sales
Jefferson County Quarterly Economic Report – Third Quarter 2017
Page 9
over-the-year and rose 1.6 percent between the first quarter and the second quarter. The Jefferson County average
rental rate was $49 below the Metro Denver average in the second quarter of 2017 and was the third-lowest
average rental rate among the six Metro Denver county market groups.
The Metro Denver
apartment rental market
remained constrained
between the second
quarters of 2016 and
2017. Four of the six
county market groups
in Metro Denver
reported over-the-year
declines in the vacancy
rate, while all six
posted increases in the
average rental rate. The
vacancy rate in Metro Denver fell 0.4 percentage points over-the-year to 5 percent. Douglas and Adams
counties recorded the largest over-the-year decreases in the vacancy rate, falling 3 percentage points and 1.2
percentage points, respectively. The Metro Denver average rental rate of $1,420 per month for all apartment
types increased 3.6 percent over-the-year. The largest over-the-year increase in the average rental rate was in
the Boulder/Broomfield area (+5.1 percent) to $1,605 for all apartment types. Douglas County reported the
smallest over-the-year increase in the average rental rate, rising 0.7 percent.
Foreclosures
Foreclosure fillings in Jefferson County
increased between the second quarter of 2016
and 2017, following four consecutive quarters
of over-the-year declines in foreclosures.
Foreclosure filings in the county rose 35.2
percent compared with the previous year to
142 total filings. Jefferson County recorded
the highest over-the-year absolute increase in
foreclosures of the seven Metro Denver
Counties. Foreclosure filings also increased
between the first and second quarters of the
year, rising 16.4 percent. Despite growth in
foreclosure filings, second quarter foreclosure
activity remained near historic lows in Jefferson County.
Metro Denver recorded a decrease in foreclosure activity over-the-year, falling 3.7 percent to 754 filings in the
second quarter. Unlike Jefferson County, foreclosure filings in Metro Denver decreased 2 percent over-the-
quarter.
County
Vacancy
RateEfficency 1 Bed
2 Bed
1 Bath
2 Bed
2 Bath3 Bed Other All
Adams 5.2% $1,094 $1,164 $1,286 $1,533 $1,846 $1,997 $1,338
Arapahoe 4.3% $1,066 $1,189 $1,304 $1,575 $1,969 $1,710 $1,362
Boulder/Broomfield 5.1% $1,429 $1,431 $1,504 $1,854 $2,056 $1,356 $1,605
Denver 5.6% $1,227 $1,301 $1,356 $1,794 $1,990 $2,013 $1,439
Douglas 4.7% $1,363 $1,348 $1,504 $1,701 $2,090 $2,307 $1,554
Jefferson 4.7% $1,039 $1,246 $1,286 $1,545 $1,789 $1,308 $1,371
Metro Average 5.0% $1,201 $1,264 $1,336 $1,662 $1,942 $1,569 $1,420
Source: Denver Metro Apartment Vacancy and Rent Survey.
Metro Denver Average Apartment Rents and Vacancy
Second Quarter 2017
Jefferson County Quarterly Economic Report – Third Quarter 2017
Page 10
Residential Construction
Residential building permits in Jefferson County decreased 55.2 percent between the second quarters of 2016
and 2017. Single-family detached permits accounted for all permits issued during the second quarter of 2017.
There was a 6.5 percent decrease in single-family detached permits issued throughout Jefferson County over-
the-year. Multi-family building permits fell from 494 permits issued during the second quarter 2016 to zero
permits issued during the second quarter of 2017. Zero permits were issued for single-family attached units
during the second quarter of 2017, down six permits from one year earlier.
Cities across Jefferson County reported variable trends in the three building permit categories between the
second quarters of 2016 and 2017. Arvada recorded the largest number of total permits within the county,
reporting 165 single-family detached permits for the second quarter of the year, a 19.5 percent decrease over
the previous year’s level. Golden, Lakewood, and Edgewater reported increases in single-family detached
permits over-the-year, while declines were reported in four market areas, ranging from -25.5 percent in
Westminster to -6.3 percent in unincorporated Jefferson County.
Commercial Real Estate
A new shared workspace is under construction in Westminster. SolderWorks will cater to entrepreneurs
that need amenities like a 3-D printer, soldering gear, laser cutters, and etching equipment to develop
prototype circuit boards and test ideas. SolderWorks also aspires to host how-tos and tuition-based programs
teaching people the basics of electronic circuits and how to program devices.
Conor Commercial Real Estate and WHI Real Estate Partners LP have broken ground on the Park 12
Hundred Tech Center in Westminster. The complex will consist of four rear-loaded single- and/or multi-
tenant buildings equipped for tech-centric industrial manufacturing and research and development. The four
buildings will total 324,200 square feet of industrial space and sizeable truck courts.
Metro Denver’s second Origin hotel is set to break ground in downtown Westminster on part of the site
formally occupied by the Westminster Mall. The 125-room hotel will include a 9,000-square-foot Marczyk
Fine Foods market, a restaurant, 4,000 square feet of conference space, and another first-floor retailer. The
project is expected to be completed in late 2018 or early 2019.
The city of Westminster broke ground on Central Square, a $5.5 million, 1.2-acre plaza at its new downtown
Westminster site. The plaza will host up to 200 events per year and will feature a large central gathering
space, an open pavilion, a stage, and open space. Downtown Westminster has dedicated 18 of its 105 acres to
parks and public spaces, with Central Square being the first to break ground.
2Q 2016 2Q 2017 2Q 2016 2Q 2017 2Q 2016 2Q 2017 2Q 2016 2Q 2017
128 120 6 - 84 - 218 120
205 165 - - - - 205 165
- 2 - - - - - 2
3 21 - - - - 3 21
60 73 - - 410 - 470 73
55 41 - - - - 55 41
10 9 - - - - 10 9
461 431 6 0 494 0 961 431
Single-Family
Detached
Jefferson County Residential Building Permits
Single-Family
AttachedMulti-Family Total Units
Unincorp. Jefferson County
Arvada
Lakewood
Edgewater
*Westminster included in Adams and Jefferson Counties. Total may reflect construction not in Jefferson County.
Source: U.S. Census Bureau.
Total Units
Golden
Westminster*
Wheat Ridge
Jefferson County Quarterly Economic Report – Third Quarter 2017
Page 11
The City of Edgewater broke ground on its new 50,000 square-foot Civic Center, which will include a
Jefferson County public library, recreation center, police station and administrative offices for the city.
Note: lease rates for industrial, flex, and retail property are triple-net; office rates are full-service.
Office Market
Jefferson County reported mixed trends in vacancy rates across the three classes of office space. The Jefferson
County office market reported an improvement in the vacancy rates for Class B and Class C space between the
second quarters of 2016 and 2017, but reported a slight increase in vacancy in Class A during the same period.
Class B space reported a 1.5 percentage point decline over-the-year in the vacancy rate, falling from 14.8
percent to 13.3 percent. The vacancy rate for Class C space fell 1.3 percentage points to 4.7 percent, while
Class A space increased 2.1 percentage points to 10.2 percent. About 158,000 square feet of Class A and B
office space was added to the market over-the-year, representing 5.5 percent of all Class A and B space added
in Metro Denver.
The average lease rates for office space in Jefferson County continued to climb across all three classes of
office buildings through the second quarter of the year. Class A and Class C space reported the largest
increases in the average lease rate, rising 4.4 percent for both office types over-the-year. Class B space also
reported significant growth, increasing 2.3 percent to $19.51 per square foot.
Similar to Jefferson County, the Metro Denver office market also reported varied trends across all three classes
of office space between the second quarters of 2016 and 2017. Class B space reported a decline in the vacancy
rate, falling 0.6 percentage points over-the-year to 9.5 percent. Class A space recorded an increase in the
vacancy rate, rising 2.7 percentage points, while there was no change in the vacancy rate reported for Class C
space. The average lease rate in the office market increased for Class B and Class C office space over-the-year,
rising 4.1 percent and 8.8 percent, respectively. Class A office space reported a decline, falling 1.5 percent to
$30.07 per square foot.
Industrial Market
Industrial warehouse vacancy in Jefferson County was unchanged at 1.7 percent between the second quarters
of 2016 and 2017. The average lease rate rose significantly in the industrial warehouse market, increasing 15.4
percent over-the-year to $9.09 per square foot. The vacancy rate in the flex/R&D market reported an over-the-
year decrease of 1.5 percentage points, declining from 5.5 percent to 4 percent. The average lease rate fell 5.6
percent during the same period, decreasing to $10.24 per square foot.
The industrial warehouse market in Metro Denver reported mixed signals over-the-year. The industrial
warehouse market reported a 0.1 percentage point increase in the vacancy rate, rising from 4 percent to 4.1
percent. The average lease rate rose 0.5 percent to $7.50 per square foot. The flex/R&D market in Metro
Denver reported a 5.6 percentage point decrease in the vacancy rate over-the-year, falling to 7.4 percent from
13 percent. The average lease rate rose 6.1 percent during the period to $12.42 per square foot.
Retail Market
The Jefferson County retail market continued to gain momentum through the second quarter of 2017. The
vacancy rate decreased 1 percentage point between the second quarters of 2016 and 2017, falling to 4.6
percent. The average lease rate increased 2.6 percent over-the-year, rising to $14.38 per square foot. The
Jefferson County average lease rate was the highest average lease rate recorded in the county since 2009. The
county added 137,561 square feet to the retail market over-the-year, representing 8.7 percent of the nearly 1.6
million square feet added in Metro Denver during the period.
The Metro Denver retail market reported similar trends as Jefferson County through the second quarter of the
year. The vacancy rate in the area fell 0.1 percentage points to 4.5 percent during the period. The average lease
rate increased 5.7 percent during the same period, rising from $16.48 per square foot to $17.42 per square foot.
Jefferson County Quarterly Economic Report – Third Quarter 2017
Page 12
Similar to Jefferson County, the average lease rate in the second quarter of 2017 was the highest rate reported
since 2009.
Commercial Construction
Nine buildings totaling about 216,090 square feet of commercial space were completed during the first six
months of 2017. The majority of completed square footage was office space with 128,000 square feet,
followed by 65,890 square feet of retail space and 22,200 square feet of flex space. The largest buildings
completed were the St. Anthony Medical Plaza III office building in Lakewood and Empire Lakewood Nissan
in Golden.
There was nearly 527,170 square feet of commercial space under construction as of the end of the second
quarter of 2017. More than 84 percent or 444,810 square feet of the space under construction was retail,
followed by flex space (11.5 percent of the total or 60,830 square feet) and industrial space (4.1 percent of the
total or 21,530 square feet). The largest buildings under construction were the Walmart and King Soopers
stores in Arvada.
Provided by:
Jefferson County Economic Development Corporation
1667 Cole Boulevard, Suite 400
Golden, Colorado 80401
303-202-2965
www.jeffcoedc.org
Prepared by:
Development Research Partners, Inc.
10184 West Belleview Ave, Ste 100
Littleton, Colorado 80127
303-991-0070
www.developmentresearch.net September 2017
2Q 2016 2Q 2017 2Q 2016 2Q 2017 2Q 2016 2Q 2017
Class A 5,416,175 5,520,175 8.1% 10.2% $25.30 $26.42
Class B 14,172,571 14,226,571 14.8% 13.3% $19.07 $19.51
Class C 3,440,449 3,440,449 6.0% 4.7% $14.47 $15.11
Class A 63,948,231 65,999,895 9.6% 12.3% $30.53 $30.07
Class B 94,244,209 95,042,507 10.1% 9.5% $22.23 $23.15
Class C 21,788,208 21,788,208 4.1% 4.1% $17.57 $19.12
Industrial Warehouse 8,000,329 8,000,329 1.7% 1.7% $7.88 $9.09
Flex/R&D 1,402,696 1,402,696 5.5% 4.0% $10.85 $10.24
Industrial Warehouse 131,834,386 132,767,724 4.0% 4.1% $7.46 $7.50
Flex/R&D 10,145,475 10,228,766 13.0% 7.4% $11.71 $12.42
34,445,258 34,582,819 5.6% 4.6% $14.01 $14.38
164,405,967 165,986,470 4.6% 4.5% $16.48 $17.42
Industrial
Retail
Jefferson County
Metro Denver
Source: CoStar Realty Information, Inc.
Jefferson County
Metro Denver
Jefferson County
Metro Denver
Note: Vacancy rate and average lease rate are for direct space only (excludes sublet space). Industrial, f lex, and retail lease
rates are triple-net; off ice rates are full-service.
Office
Avg Lease Rate
(per sq. ft.)
Jefferson County Commercial Vacancy and Lease Rates by Property Type
Total Existing Square
FootageVacancy Rate