March 2008
With numerous announcements in the energy industry and record-breaking sales in the industrial real estate sector, confidence among consumers and businesses is relatively robust, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for March 2008.
Houston-based ConocoPhillips recently purchased the former StorageTek campus in Louisville. Company spokespeople say the 432-acre campus will be redeveloped into a global training center focused on renewable energy. ConocoPhillips maintains similar facilities at several locations worldwide but plans to consolidate training operations in Louisville. Campus redevelopment could be completed over the next three to four years.
Rapidly growing demand for renewable energy is also boosting the local economy. Ascent Solar Technologies recently announced plans to relocate its operations and expand its workforce. The company has purchased a $5.5 million, 120,000 square-foot manufacturing facility in Thornton and plans to retrofit the building for thin-film manufacturing. The company’s Littleton headquarters will also relocate to the new facility, and officials say the Ascent workforce will triple by 2010.
Metro Denver’s energy research facilities are also evolving. The Colorado Renewable Energy Collaboratory, a cooperative backed by several universities and research institutions, is preparing to spinoff a solar energy research center. Plans for four additional energy research centers are underway, and officials with the Collaboratory have indicated that the new solar center – called SolarTAC – could be located near DIA.
“With our smart workforce, strategic location and natural resources, it’s a ‘no-brainer’ for energy companies to set up shop here,” quipped Tom Clark, executive vice president for the Metro Denver EDC. “Our regional economy continues to perform better than the rest of the country,” he stated.
Forbes magazine recently named Boulder first among the 25 “Smartest Cities in America.” The ranking was based on the percentage of the adult population with at least a bachelor’s degree in the nation’s largest metro areas, and Boulder’s was highest overall with 53 percent.
With growing energy companies comes a demand for industrial real estate space. While industrial market activity tapered through 2007, the Metro Denver region’s relative stability is still expected to draw investors. According to a recent report by CB Richard Ellis, the average price per square foot for industrial property fell below the national average for the first time in more than a year. Despite these weaker conditions, a record $1 billion in industrial property sold in Metro Denver during the third and fourth quarters of 2007.
The Mountain Region Consumer Confidence Index increased slightly in January as respondents’ assessments of the current economic situation and the near-term outlook both improved. Despite its increase, the Mountain region index was eight percent below January 2007. The national index continued to slide downward and ended January more than 20 percent below January 2007.
These and other trends bear witness to the dynamism and stability of Metro Denver’s economy. Recent economic data show fairly balanced positives and negatives, as eight of 18 economic indicators moved in a positive direction for the month. Eight of the indicators also had positive annual trends, down from 10 in the previous release.
The Monthly Economic Summary provides a snapshot of metro area economic activity, as well as its relationship to national and regional economic trends.