Metro Denver has a population of more than three million people, and has a growth rate that has consistently outpaced the national rate every decade since the 1930s. As a fast-growing region, Metro Denver is a dynamic location where companies can easily attract highly skilled workers and expand their operations. The region is one of the top in the country for in-migration of Millenials, which will make up the future workforce. Colorado ranks #1 in the country for labor supply (Forbes, 2016).
The third quarter of 2017 marked the Denver industrial market’s 23rd consecutive quarter of positive growth with net absorption of 1.7 million square feet, bringing year-to-date net absorption to 2.4 million square feet and dropping the overall vacancy rate from 5.2% to 4.4% from quarter to quarter. Industrial employment has recorded only positive year-over-year gains since 2011.
The largest submarket in the Denver metro area, the Southeast Submarket is located in both Arapahoe and Douglas Counties, two of the state’s strongest performing regions. The submarket offers access to a highly educated, fit and motivated workforce and rivals Denver’s CBD as the region’s foremost employment center. Transit oriented development has generated new vitality in the market as connectivity increases to the rest of the metro area including Denver Union Station and the Denver International Airport.
The Southeast Suburban submarket’s location provides exceptional access to an educated employment base of executives, business professionals, engineers, technical and clerical personnel; a key reason for the solid economic base of the area. The combined Arapahoe and Douglas County area boasts a robust and skilled labor pipeline with over 45.4% obtaining a bachelor’s degree or higher, which is significantly higher than the national average of 29.9%, as well as the Denver metro area average of 40.8%. Young professionals are highly educated, with over 260,000 individuals over 25 having completed at least four years of college, including 37% of Science & Engineering related degrees in Metro Denver. 91.9% have achieved at least a high school diploma. The average household income for Arapahoe County is $90,457; while Douglas County’s average income is $125,904. The southeast economy has become more diversified, with knowledge-based industries like
software/IT, telecom, aerospace and bioscience having grown along with more traditional industries like financial services, engineering and healthcare. The unemployment rate is just above 3%.
The Southeast Submarket is made up of 10.1MM SF of industrial inventory, currently 95.6% occupied after absorbing 63K SF through Q3 2017, representing an annualized vacancy decrease of 0.83% for 2017.
The property is in close proximity to high quality retail and restaurant amenities. Park Meadows Mall, which is the newest and largest retail center in Denver. Located 5 minutes from the subject, it features 185 stores and restaurants, from the best in branded fashion to fine dining such as Fleming’s Steakhouse. It also sits right by Highlands Ranch, which features executive housing and boasts the two best school systems in Denver (Littleton and Cherry Creek).
The Denver Technological Center, located 5 miles north of the subject property, is an 850-acre business and economic trading center where cable companies such as United Cablevision, United Artists Cable, and AT&T Broadband had their start in Denver due to a conceptual Master Plan along a new fiber optic line in the early 1970s. The area’s progress was a major reason for Denver Regional Council of Government’s T-REX expansion into the Denver Tech Center, which built new light rail lines connecting the Denver Tech Center to downtown Denver. The area is also home to the largest concentration of corporate headquarters, including seven of the state’s ten Fortune 500 headquarters.