March 2004
The Metro Denver area ranks slightly above the national average for cost of living as measured by ACCRA, the association of community and economic development research professionals. The index measures relative price levels for consumer goods and services in participating cities, as compared to the national average of 100 for all participating cities. The cost of living index for Metro Denver is 104.8 for the fourth quarter of 2003, or 4.8 percent above the national average.
Consumer confidence in the Mountain region leaped upwards in January to 119.6, its highest point since May 2002. The Mountain Region is currently posting the highest confidence level of the nine regions included in the monthly report by the Conference Board. The national Consumer Confidence Index increased to 96.8, its highest level since July 2002.
The number of home sales closed in Metro Denver in February fell to 2,678, down from 3,290 in January. For the first two months of the year, home sales are 0.6% higher than the same period last year. The number of properties under contract increased to 2,560 in February, bringing the two-month total to 10.1% higher than last year.
The Metro Denver office vacancy rate increased to 15.1% in the fourth quarter of 2003, up from a revised 14.8% in the third quarter of 2003. The rate with sublease space was relatively stable, rising from 17.4% to 17.5%. For the year, the direct vacancy rate rose 1.5 percentage points while the rate with sublease space was one percentage point higher.
Data from CoStar Realty Information, Inc. indicates a direct industrial vacancy rate of 7.9% in the fourth quarter of 2003, up from the 7.3% rate posted last quarter. The average lease rate slipped to $4.84 per square foot, down from $5.54 per square foot posted during the fourth quarter of 2002.
The direct vacancy rate in flex buildings continues to increase at a strong clip. The direct vacancy rate increased to 18.0% in the fourth quarter of 2003, up from 16.9% last quarter. The vacancy rate for flex space is nine percentage points higher than the market segment’s healthiest point in the fourth quarter of 2000 when vacancy was just nine percent
The Monthly Economic Summary provides a snapshot of metro area economic activity, as well as its relationship to national and regional economic trends.