October 2004
Continued job gains, stabilization in commercial real estate continue to advance economy
Continued employment increases and a stabilization of the commercial real estate market are continuing to advance Metro Denver's economic recovery, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for October 2004.
Metro Denver's recovery is taking small steps forward in its journey toward economic recovery. Economic conditions in Metro Denver are holding steady on an annualized basis, with 11 of the 18 economic indicators continuing to post positive annual movements this month. In addition, 10 of the 18 indicators moved in a positive direction for the month, the same number as last month although the mix shifted slightly.
Metro Denver area added 1,300 jobs in August, according to preliminary employment statistics from the Colorado Department of Labor and Employment. Also, the unemployment rate in Metro Denver continued its gradual decline in August, slipping from 5.1 percent in July to 5 percent in August as employment moved in a positive direction.
Commercial real estate data for the previous month shows that Metro Denver's office, industrial, and flex markets which have been volatile in previous months, are beginning to stabilize. Direct office vacancy rates inched downwards to 15 percent for the third quarter of 2004, while industrial vacancy rates dropped to 8 percent. In addition, there was no change in the direct flex vacancy rate from the second quarter to the third quarter of 2004.
“When you couple the steady growth in employment that we've seen over the past months with the encouraging numbers in commercial real estate, this truly shows that companies are feeling confident to make expansion plans," said Tom Clark, executive vice president of the Metro Denver EDC. “We are seeing a significant uptick in our prospect activity involving companies both within and outside of Metro Denver that are considering expanding their operations. This is what will ultimately drive a sustained economic recovery in the metro area."
The Monthly Economic Summary provides a snapshot of metro area economic activity and its relation to regional and national economic trends.