Commercial Real Estate Statistics Favor Market Momentum in Denver
CHICAGO, Feb. 3, 2016 – Vegas might be placing its bets on the Carolina Panthers, but commercial real estate experts at JLL predict a victory for the Denver Broncos this Sunday at Levi’s Stadium in San Francisco, California.
JLL Americas Executive Chairman and Hall of Fame Quarterback Roger Staubach said, “I’ve followed both teams throughout the season and the matchup between two great quarterbacks, one young and one old, will make the game very interesting.”
“Cam Newton had a phenomenal year and Peyton has had a fantastic career. I think it’s going to be a victory for the Broncos and a chance for Peyton to go out on top.”
According to JLL research, since the firm began making predictions in 2011, NFL teams based in cities with higher overall office vacancy rates took home the championship title 60 percent of the time. Denver’s vacancy rate is 13.1 percent, which is marginally higher than Charlotte’s 12.3 percent vacancy rate.
However, JLL also considered several off-the-field statistics to determine the outcome of this year’s game. For instance, tenant and investor opportunity in the mile-high city remains high as a result of increased leasing activity from the technology industry.
Also, Denver’s workforce is highly educated, with a demand for skilled tech employees as the industry continues to grow. Historically, Boulder was home to a majority of tech firms in Colorado, but today’s companies are looking for locations in the CBD, where average rents are $34.21 per square foot.
The metro area is experiencing one of its strongest economic cycles with an unemployment rate of 3.2 percent – the second lowest in the nation. Population is growing rapidly, fueling momentum in the commercial real estate office market. It’s projected that city’s population will increase by 19 percent before the end of the decade, swelling to 3.3 million residents.
“In Denver, we’re all about defense and finding opportunities for growth,” said JLL Market Director Barry Dorfman. “This year we saw the commercial real estate office market make an adjustment for the future, just like the Broncos do on the field, and move away from its dependence on the energy sector to emerge as a rising high tech market.”
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 230 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $56.4 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.