Statewide Economic Impact Report
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NAIOP Colorado is proud to announce the publication of its inaugural study on the impact of commercial real estate on Colorado\'s economy. A joint study by the University of Colorado and the ...

NAIOP Colorado is proud to announce the publication of its inaugural study on the impact of commercial real estate on Colorado\'s economy. A joint study by the University of Colorado and the University of Denver finds that the commercial real estate sector accounts for more than 10 percent of Colorado\'s economy. Commercial real estate generated $23.4 billion in 2006 economic impact, with almost 70 percent coming from existing properties.

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Statewide Economic Impact Report Statewide Economic Impact Report Document Transcript

  • Colorado’s Commercial Real Estate Industry Statewide Economic Impact Report National Association of Industrial and Office Properties The Forum for Commercial Real Estate Colorado Chapter Submitted by University of Colorado University of Denver, Franklin L. McGraw Hill Construction Research Real Estate Center Burns School of Real Estate & & Analytics Thomas G. Thibodeau Ph.D. - Construction Management Academic Director Glenn R. Mueller Ph.D. - Professor Real Capital Analytics, Inc. Brian Lewandowski - MBA, Leeds School Andrew G. Mueller, MSRECM candidate, of Business Burns School of RECM Research sponsored by:
  • Colorado’s Commercial Real Estate Industry Statewide Economic Impact Report Submitted by University of Colorado University of Denver, Franklin L. McGraw Hill Construction Real Estate Center Burns School of Real Estate & Research & Analytics Thomas G. Thibodeau Ph.D. - Construction Management Academic Director Glenn R. Mueller Ph.D. - Professor Real Capital Analytics, Inc. Brian Lewandowski - MBA, Leeds School Andrew G. Mueller, MSRECM candidate, of Business Burns School of RECM Research sponsored by NAIOP Colorado Chapter 1720 S. Bellaire Street, Suite 110 Denver, CO 80222-4303 Ph: (303) 782-0155 Fax: (303) 820-3844 www.naiop-colorado.org
  • About NAIOP The National Association of Industrial and Office Properties is the nation’s leading trade association for developers, owners, investors and other professionals in industrial, office, retail and mixed-use commercial real estate. Founded in 1967, NAIOP comprises 15,000+ members in 54 chapters throughout North America. NAIOP provides networking oppor- tunities, educational programs, research on trends and innovations and strong legislative representation. The Colorado Chapter includes over 700 members. Our monthly breakfast meetings are open to non-members. If you are involved with commercial real estate in Colorado (including office, industrial, retail, mixed use, etc.) as a developer, owner or investor or affiliated service provider, then you should be involved with us! ©2008 National Association of Industrial and Office Properties Colorado Chapter. All Rights Reserved. Is is important to remember that the data collection measures included in this report should be regarded as guidelines rather than as absolute standards. The information readily available may differ according to the geographic area in question, and results may vary accordingly. Local and regional economic performance is a key factor. Further study and evalua- tion are recommended before any investment decisions are made. This project is intended to provide information and insight to industry practitioners and does not constitute advice or recommendations. NAIOP Colorado disclaims any liability for action taken as a result of this project and its findings.
  • Preface
  • Foreward
  • Table of Contents List of Tables / List of Figures ................................................................ii List of Appendices..................................................................................iii Executive Summary ................................................................................1 Introduction ............................................................................................5 Commercial and Multifamily Property in Colorado: 1967-2006 ........7 Methodology ........................................................................................10 Economic Impacts of Existing Commercial Property ..........................11 Total Area ..........................................................................................11 Summary of Impacts for Existing Commercial Properties ................12 Existing Office Properties ..............................................................13 Existing Industrial Properties..........................................................14 Existing Retail Properties ..............................................................15 Existing Hotel Properties................................................................16 Economic Impacts of Tenant Improvements ........................................17 Summary of Tenant Improvements Impacts ......................................17 Office Property Tenant Improvements ..........................................18 Industrial Property Tenant Improvements ......................................18 Retail Property Tenant Improvements............................................19 Hotel Property Tenant Improvements ............................................19 Multifamily Property Tenant Improvements ..................................20 Economic Impacts of New Construction ..............................................21 Summary of Impacts for New Construction ......................................21 Office Property New Construction ................................................22 Industrial Property New Construction............................................22 Retail Property New Construction..................................................23 Hotel Property New Construction..................................................23 Multifamily Property New Construction ........................................24 Economic Impacts of Commercial Property Transactions ....................25 Economic Impacts of Commercial Property Refinancing ....................26 Fiscal Impacts ........................................................................................27 Commercial Property Taxes ..............................................................27 Commercial Property Sales Taxes......................................................28 Conclusion ............................................................................................28 i
  • List of Tables Table 1: Economic Impacts of Commercial Real Estate and Multifamily Construction on Colorado’s Economy....................................................................................2 Table 2: Colorado Real Estate Regions ..................................................................................................................6 Table 3: Existing Property, Square Feet (000), by Region, 2006 ..........................................................................12 Table 4: Economic Impacts of Existing Commercial Property, by Region, 2006 ................................................13 Table 5: Economic Impacts of Existing Office Real Estate, by Region, 2006 ......................................................14 Table 6: Economic Impacts of Existing Industrial Real Estate, by Region, 2006..................................................15 Table 7: Economic Impacts of Existing Retail Real Estate, by Region, 2006 ......................................................16 Table 8: Economic Impacts of Existing Hotel Real Estate, by Region, 2006........................................................17 Table 9: Economic Impacts of Tenant Improvements, by Region, 2006 ..............................................................18 Table 10: Economic Impacts of Office Tenant Improvements, by Region, 2006 ..................................................18 Table 11: Economic Impacts of Industrial Tenant Improvements, by Region, 2006 ..............................................19 Table 12: Economic Impacts of Retail Tenant Improvements, by Region, 2006 ....................................................19 Table 13: Economic Impacts of Hotel Tenant Improvements, by Region, 2006 ....................................................20 Table 14: Economic Impacts of Multifamily Tenant Improvements, by Region, 2006 ..........................................20 Table 15: Economic Impacts of New Construction, by Region, 2006 ....................................................................21 Table 16: Economic Impacts of Office Construction, by Region, 2006..................................................................22 Table 17: Economic Impacts of Industrial Construction, by Region, 2006 ............................................................22 Table 18: Economic Impacts of Retail Construction, by Region, 2006 ..................................................................23 Table 19: Economic Impacts of Hotel Construction, by Region, 2006 ..................................................................23 Table 20: Economic Impacts of Multifamily Construction, by Region, 2006..........................................................24 Table 21: Total Commercial Property Transaction Volume, in 000s, by Region, 2006 ..........................................25 Table 22: Total Commercial Property Transaction Fees, in 000s, by Region, 2006 ..............................................25 Table 23: Total Commercial Property Refinancing Volume, in 000s, by Region, 2006 ..........................................26 Table 24: Total Commercial Property Refinancing Fees, in 000s, by Region, 2006 ..............................................26 Table 25: Colorado Assessed Property Value and Estimated Taxes, 000s, by Region, 2006 ................................27 Table 26: Summary Impacts of Commercial Real Estate and Multifamily Construction on Colorado’s Economy, 2006........................................................................29 Table 27: Per Square Foot Office Property Operating Expenses ..........................................................................32 Table 28: Per Square Foot Retail Property Operating Expenses ..........................................................................33 Table 29: Industrial Property Operating Expenses, 2006 Estimates ......................................................................33 Table 30: Denver-Boulder-Greeley CPI ..................................................................................................................34 Table 31: Construction and Tenant Improvements Soft Costs Estimates ..............................................................35 List of Figures Figure 1: Impacts of Commercial Real Estate and Multifamily Construction on Colorado Regions, 2006 ............3 Figure 2: Direct Spending Per Employee, 2006 ......................................................................................................3 Figure 3: Per Capita Impacts of Commercial Real Estate and Multifamily Construction on Colorado Regions, 2006 ................................................................................................4 Figure 4: Map of Colorado Real Estate Regions......................................................................................................6 Figure 5: Colorado Commercial and Multifamily Construction, 1967-2006 ............................................................7 Figure 6: Colorado Commercial and Multifamily Property Stock, 1970-2006 ........................................................7 Figure 7: Colorado Commercial and Multifamily Construction Value Versus GDP, 1967-2006 ..............................8 Figure 8: Colorado Commercial and Multifamily Construction as a Percent of GDP, 1967-2006 ..........................9 Figure 9: Colorado Property Tenant Improvements, 1967-2006 ............................................................................9 ii
  • List of Appendices Appendix A: Economic Impacts, by County, 2006 ..................................................................................................30 Appendix B: Notes to Methodology........................................................................................................................31 Appendix C: RIMS II Colorado Regions ..................................................................................................................36 Appendix D: Supply of Existing Commercial and Multifamily Property (000s sf), by Property Type, by County, 2006 ....................................................................................37 Appendix E: Economic Impacts of Existing Commercial Property, by County, 2006..............................................38 Appendix F: BOMA Office Expense Definitions ......................................................................................................39 Appendix G: Economic Impacts of Existing Office Real Estate, by County, 2006 ..................................................40 Appendix H: Economic Impacts of Existing Industrial Real Estate, by County, 2006..............................................41 Appendix I: Urban Land Institute Retail Expense Definitions ................................................................................42 Appendix J: Economic Impacts of Existing Retail Real Estate, by County, 2006 ..................................................43 Appendix K: Economic Impacts of Existing Hotel Real Estate, by County, 2006....................................................44 Appendix L: Economic Impacts of Tenant Improvements, by County, 2006 ..........................................................45 Appendix M: Economic Impacts of Office Tenant Improvements, by County, 2006................................................46 Appendix N: Economic Impacts of Industrial Tenant Improvements, by County 2006 ..........................................47 Appendix O: Economic Impacts of Retail Tenant Improvements, by County, 2006 ................................................48 Appendix P: Economic Impacts of Hotel Tenant Improvements, by County, 2006 ................................................49 Appendix Q: Economic Impacts of Multifamily Tenant Improvements, by County, 2006........................................50 Appendix R: Economic Impacts of New Construction, by County, 2006 ................................................................51 Appendix S: Economic Impacts of Office Construction, by County, 2006..............................................................52 Appendix T: Economic Impacts of Industrial Construction, by County, 2006 ........................................................53 Appendix U: Economic Impacts of Retail Construction, by County, 2006 ..............................................................54 Appendix V: Economic Impacts of Hotel Construction, by County, 2006 ..............................................................55 Appendix W: Economic Impacts of Multifamily Construction, by County, 2006......................................................56 Appendix X: Colorado Assessed Property Value and Estimated Taxes, by County, 2006 ......................................57 Appendix Y: Assessed Valuation, Revenue, and Average Levies by County, 2006 ................................................59 iii
  • Executive Summary The commercial real estate industry impacts the Colorado economy in a variety of ways. The industry purchases construction and building maintenance materials from Colorado suppliers and provides jobs for Colorado residents. Existing income-producing properties provide permanent jobs maintaining, managing, and leasing property. New construction and tenant improvements employ construction workers, architects, and engineers. Income-producing property transactions and refinancing provide employment in the brokerage, financing, and legal professions. Finally, revenues generated by property and sales taxes are important sources of financing public services. Activities in the commercial and multifamily property sectors have two measurable impacts on Colorado’s economy. First, income-producing property spending has direct impacts on the State’s output, earnings, and employment. Second, each dollar spent in the Colorado real estate industry has an indirect, or multiplier, effect on the Colorado economy. The indirect influence of real estate spending occurs when money spent on real property is used to purchase other goods and services in the State. For example, real estate employees spend wages earned in their jobs on housing, food, clothes, entertainment and other goods and services in Colorado. These expenditures create more employment and increase output in other industries. This report estimates the direct and indirect impacts that income- producing property has on the Colorado economy. Economic impacts are reported separately for existing properties, for tenant improvements, new construction, transactions, refinancing, and for the fiscal impacts of property and sales taxes. Economic impacts are reported for the entire State of Colorado, for eight regions in Colorado and for each county. Direct income-producing property spending was estimated at $12.3 billion in 2006, or 5.4% of Colorado’s economy. The total (direct and indirect) economic impact that income-producing properties had on the State’s output totaled $24.3 billion in 2006, or 10.5% of Colorado’s economy. In 2006, there were 137,832 direct employees servicing Colorado’s income-producing property sector, earning an annual average income of $32,832. Total 2006 employment (direct plus indirect) in the State attributable to income-producing property was 254,976, with employees earning an average annual wage of $32,177 (Table 1). Most of the economic impact ($16.1B of the $24.3B) was generated by existing income-producing properties. Office and hotel properties account for nearly 76% of this contribution. New income- producing construction contributed $3.3B in direct spending and $6.9B in total output (direct plus indirect economic impacts). See Appendix A for county specific impacts of existing, tenant improvements, and construction. 1
  • Table 1: Economic Impacts of Commercial Real Estate and Multifamily Construction on Colorado’s Economy Direct Spending Total Output Direct Earnings Total Earnings Direct Total (000) (000) (000) (000) Employment1 Employment Existing2 Office 3,377,771 7,026,103 1,386,691 2,509,433 38,973 74,756 Industrial 301,387 623,368 132,039 230,295 3,293 6,449 Retail 1,574,128 3,256,520 705,653 1,219,051 18,627 35,106 Hotel 2,881,556 5,158,947 984,274 1,663,087 45,793 67,255 Total Existing 8,134,842 16,064,938 3,208,657 5,621,866 106,686 183,566 Tenant Improvements Office 96,426 212,582 35,339 72,056 840 1,995 Industrial 14,693 33,231 5,367 11,261 128 312 Retail 94,036 211,932 34,496 71,906 820 1,987 Hotel 112,504 248,651 40,974 84,157 974 2,321 Multifamily 27,195 60,587 10,016 20,616 238 571 Total TI 344,854 766,983 126,192 259,996 3,000 7,186 New Construction Office 465,385 1,008,333 170,534 341,997 4,054 9,478 Industrial 517,969 1,091,131 190,880 371,999 4,560 10,386 Retail 536,406 1,179,158 196,923 400,545 4,681 11,080 Hotel 313,518 574,134 109,816 189,096 2,608 5,249 Multifamily 1,431,905 3,016,571 522,341 1,018,760 12,242 28,031 Total Construction 3,265,183 6,869,327 1,190,494 2,322,397 28,145 64,224 Other 3 Construction Period Interest/Fees 137,294 137,294 - - - - Transactions 411,408 411,408 - - - - Refinancing 47,093 47,093 - - - - Total Other 595,795 595,795 - - - - Total All 12,340,674 24,297,043 4,525,343 8,204,259 137,832 254,976 1 Employment refers to the number of workers, both full time and part time. 2 Existing does not include multifamily. 3 Other does not include multifamily, nor the impact on employment, earnings, multiplier effect, or impact on individual counties due to the uncertainty of the source of, and redeployment of funds. Sources: McGraw-Hill Construction Research & Analytics, 2007; BOMA International, Experience Exchange Report 2007; Urban Land Institute, Dollars & Cents of Shopping Centers / The SCORE 2006; PKF Hospitality Research; NAIOP Industrial Income and Expense Report 2001-2002; Real Capital Analytics; NorthMarq Capital; University of Colorado-Boulder; University of Denver The impact of income-producing property was highly variable by region, with the greatest impacts located in the Denver Metro, North Front Range, and Mountain Resort regions, tallying 79.3% of the total impact collectively (Figure 1). 2
  • Figure 1: Impacts of Commercial Real Estate and Multifamily Construction on Colorado Regions, 2006 * Regions exclude the refinancing and transaction impacts because these impacts were measured at the state level, but not the county or regional level. Average direct spending per income-producing real estate employee was $85,212, with a regional standard deviation of $8,613 (10.1%) (Figure 2). The Denver Metro region accounted for nearly 53.2% of direct spending, and therefore greatly impacted the average. Figure 2: Direct Spending Per Employee, 2006 3
  • The per capita impacts of income-producing property on Colorado regions were highly variable in 2006, with the greatest impact at $16.35 per person occurring in the Mountain Resort region (Figure 3). Naturally, areas with higher levels of income-producing property activity and comparably smaller populations will have larger per capita impacts, as is true in the Mountain Resort and Pueblo regions. The average per capita impact for the eight regions was $4.34. Figure 3: Per Capita Impacts of Commercial Real Estate and Multifamily Construction on Colorado Regions, 2006 County Population Source: U.S. Census Bureau, www.census.gov, as of September 26, 2007. 4
  • I. Introduction At the request of the Colorado Chapter of the National Association of Industrial and Office Properties (NAIOP), the University of Colorado- Boulder and the University of Denver collaboratively analyzed the economic impacts of income-producing property on Colorado’s economy in 2006. Income-producing property is undoubtedly a major contributor to the Colorado economy in terms of output, employment, and wages. This report defines commercial property as office, industrial, retail, and hotel. Income-producing property is commercial and new multifamily construction. It estimates the economic and fiscal impacts of the income- producing property industry on output, earnings, and employment. Economic impacts are reported for the entire State of Colorado and separately by region based on economic and geographic similarities identified in the 2006 publication “Economic Contributions of Real Estate Activity and Value in Colorado” produced by the Business Research Division of the Leeds School of Business at the University of Colorado-Boulder (Table 2 and Figure 4). The appendices provide individual county impacts. Impacts for Broomfield County are not reported separately due to the inauguration of county status in 2001. Since Broomfield County was created from land located in Adams, Boulder, Jefferson, and Weld counties, the impacts that income- producing property had in Broomfield County are included in these four counties. The income-producing property industry contributes to the Colorado economy by purchasing goods and services from Colorado suppliers and by providing jobs throughout the lifecycle of a property. From the time an income-producing property is conceived by a developer, lawyers, architects, engineers, and a host of other real estate professionals become involved in the planning of the building, the surrounding land, and the public and private infrastructure required to support the development. During the construction phase, an even larger group of professionals are called to action, from builders to construction managers orchestrating numerous construction trades, including carpenters, steel workers, plumbers, electricians, landscape architects, heavy equipment operators, concrete specialists, and many more. Finally, once construction is complete, the property employs another set of individuals to keep the building operating, including leasing agents, financiers, maintenance workers, and property managers. 5
  • Table 2: Colorado Real Estate Regions Region Counties North Front Range Boulder, Weld, and Larimer Counties Grand Junction Mesa County Denver Metro Denver, Arapahoe, Adams, Broomfield, Douglas, and Jefferson Counties Eastern Plains Baca, Bent, Cheyenne, Crowley, Elbert, Huerfano, Kiowa, Kit Carson, Las Animas, Lincoln, Logan, Morgan, Otero, Phillips, Prowers, Sedgwick, Washington, and Yuma Counties Mountain Resort Eagle, Pitkin, Routt, San Miguel, Summit, Garfield, and Grand Counties Pueblo Pueblo County Colorado Springs El Paso and Teller Counties Mountain Rural Alamosa, Archuleta, Chaffee, Clear Creek, Conejos, Costilla, Custer, Delta, Dolores, Fremont, Gilpin, Gunnison, Hinsdale, Jackson, La Plata, Lake, Mineral, Moffat, Montezuma, Montrose, Ouray, Park, Rio Blanco, Rio Grande, Saguache, and San Juan Counties Source: Business Research Division, Leeds School of Business Figure 4: Map of Colorado Real Estate Regions Source: Business Research Division, Leeds School of Business. The total economic impact of income-producing property spending on the Colorado economy is estimated in two parts. First, spending has a direct contribution to output, earnings, and employment. Employment refers to the number of employees, both full time and part time. Spending also has an indirect, or multiplier, effect on the economy because the dollars spent (or earned) in income-producing property are used to purchase other goods and services in the state. This multiplier effect is measured using the U.S. Department of Commerce, Bureau of Economic Analysis’s (BEAs) Regional Input-Output Modeling System (RIMS) II multipliers. These multipliers estimate the influence of spending in one or more industries on output, earnings, and employment in other industries. The multipliers are produced by BEA using data on the local area personal income and the national input-output accounts. This report captures a snapshot of the lifecycle of income-producing property for the State of Colorado in 2006. 6
  • A. Commercial and Multifamily Property in Colorado: 1967-2006 The commercial and multifamily construction industries have added more than one billion square feet of office, industrial, retail, hotel and multifamily space in Colorado since 1967. Construction has traversed through three major cycles over 30 years, and it is currently in its fourth. The first cycle started in the 1960s and peaked in 1973. The next cycle bottomed out in 1975 and peaked in 1984, fueled by office construction. The third cycle bottomed in 1991, with the slowest construction expansion in the 30-year period, which was followed by 10 years of increasing construction activity. Colorado is currently in another cycle that bottomed in 2003 and is now moving toward another peak (Figure 5). Figure 5: Colorado Commercial and Multifamily Construction, 1967-2006 Sources: McGraw-Hill Construction Research & Analytics, Bureau of Economic Analysis The total stock of income-producing property increased at a 2.84% compound annual growth rate from 1970 to 2006. The total stock naturally tracks the construction of new income-producing property as it is the product of existing, new, and decommissioned properties. In 2006, income-producing property, including office, industrial, retail, hotel, and multifamily, totaled nearly 1.35 billion square feet in Colorado, compared to 491.3 million in 1970 (Figure 6). Figure 6: Colorado Commercial and Multifamily Property Stock, 1970-2006 Source: McGraw-Hill Construction Research & Analytics 7
  • The rate of income-producing property construction and the growth rate of the Colorado economy are closely linked, with a correlation of 0.79 from 1967 to 2006 (Figure 7). Over time, the major drivers of Colorado’s economy have also changed, with manufacturing representing 16.5% of Colorado’s GDP in 1967, compared to 6.5% in 2006. Conversely, Professional Business Services is now a major underpinning of the Colorado economy, representing 13.7% of 2006 State GDP. Figure 7: Colorado Commercial and Multifamily Construction Value Versus GDP, 1967-2006 Sources: McGraw-Hill Construction Research & Analytics, Bureau of Economic Analysis Real estate is one of the three basic “factors of production” (land, labor, and capital) required for virtually all economic activities. When new jobs are created in the state, greater demand is placed on places to eat, work, shop, play, and sleep. From 1967 to 2006, commercial and multifamily property construction has gone through four extended growth periods (including the current cycle). Peak construction as a percent of GDP occurred in 1972, comprising 4.9% of GDP (Figure 8). Conversely, at 0.37%, 1991 brought the lowest contribution of GDP from construction. Income-producing property construction’s 30-year average contribution to Colorado’s GDP is 2.0%, signaling that the 1.4% of State GDP in 2006 was an underperforming year overall. 8
  • Figure 8: Colorado Commercial and Multifamily Construction as a Percent of GDP, 1967-2006 Source: Bureau of Economic Analysis, University of Colorado-Boulder, University of Denver. In addition to income-producing property construction, expenditures on tenant improvements are a major contributor to local and state economies. From 1996 to 2006, tenant improvements have averaged $262 million annually in Colorado (Figure 9). Figure 9: Colorado Tenant Improvements, 1967-2006 Source: McGraw-Hill Construction Research & Analytics. 9
  • With the continued growth in population and employment, the demand for income-producing property is expected to continue to remain strong, with the natural cycles inherent to the industry. II. Methodology The base methodology for this report was obtained from the NAIOP publication “How to Calculate the Economic Contribution of Office, Industrial and Retail Real Estate to the Local Community” by Stephen S. Fuller, Ph.D., George Mason University (2007). This study builds on the NAIOP methodology by including commercial tenant improvements, commercial transaction costs and commercial financing costs. For greater detail regarding the methodology, see Appendix B. Data from McGraw-Hill Construction Research & Analytics on the total square feet of existing commercial real estate for each property type were employed, along with data on specific property-type operating expenses to estimate aggregate spending and employment for operations, maintenance, management, and utilities. McGraw-Hill Construction Research & Analytics data on square feet of new construction, by property type, along with data on per square foot construction costs obtained from R. S. Means, were used to estimate the value of new construction. Data on tenant improvements were also provided by McGraw-Hill Construction Research & Analytics. RIMS II multipliers, obtained from the BEA through the State Demography Office, provided the basis for estimating direct employment and earnings based on direct spending, as well as the indirect output, employment, and earnings. BEA publishes RIMS II multipliers by industry sector and by economic region in Colorado (Appendix C). This study employs the multipliers that include the impact of local government. Multipliers are reported for output, earnings, and employment. For instance, if the utilities industry output multiplier is 2.1365 for the State of Colorado, then the impact of $1 million in utilities spending on Colorado’s economy is $2.1365 million ($1 million direct spending and $1.1365 million indirect). Direct earnings can be estimated using the BEA direct earnings per dollar of sales to final demand multiplier, which in this scenario is 0.1808. Therefore, the $1 million in utilities spending generates $180,800 in direct earnings. Similarly, employment can be estimated using the direct employment per million dollars of sales to final demand multiplier. The employment multiplier in this example is 2.2577. That means there are 2.2577 jobs generated for every $1 million in utility expenditures. It should be noted that the estimated multiplier impacts on specific counties are estimates and are more accurate in non-metropolitan areas. The difficulty estimating metropolitan county multiplier effects is because metropolitan areas 10
  • have greater economic overlap since goods and labor are often provided from neighboring counties; and commuting employees spend a higher proportion of their earnings near their home. The multiplier effects in this report assume that the economic activities from income- producing property in a county are proportional to the area of income- producing property in that region. The economic impacts of income-producing property transactions and refinancing were estimated on a direct basis only. The indirect, or multiplier, effect is omitted because of the difficulty in knowing how much of the interest and fee income is spent in Colorado. Fiscal impacts are based on State of Colorado reported estimates of assessed income-producing property values and estimated property mill levies in each county. III. Economic Impacts of Existing Commercial Property Existing commercial property undoubtedly has a profound impact on the Colorado economy in terms of output, earnings, and employment derived from operating expenditures. These operating expenditures include a variety of services, such as management, cleaning, repairs, maintenance, leasing, expenditures on utilities, and so on, that keep the property functioning. To assess these impacts, data has been gathered from numerous public and private sources. Necessary data included existing income- producing property area in square feet by type and by county, operating expenditures per square foot, and industry economic multipliers. The economic impact of tenant improvements and construction of new properties are examined in a later section. A. Total Area In 2006, the three major metropolitan areas in Colorado (Denver Metro, North Front Range, and Colorado Springs) contained 83.5% of the existing commercial and multifamily stock in Colorado, with nearly 1.13 billion square feet of income-producing property. The Denver Metro region alone represented 57.2% of the existing stock of income- producing property. Table 3 provides total income-producing property space, by property type, for each of the eight regions in the State. Individual county estimates are provided in Appendix D. 11
  • B. Summary of Impacts for Existing Commercial Properties Direct spending in the existing inventory of all commercial properties totaled $8.1 billion in 2006, for a total (direct and indirect) effect of $16.1 billion on Colorado’s economy, or 7.0% of State GDP (Table 4)1. For existing real estate, direct spending generally includes operating costs associated with the administration, cleaning, maintenance, utilities, and taxes on the properties. The existing income-producing property sector employed 106,686 direct employees earning an average wage of $30,076. The 183,566 direct and indirect employees earned an average wage of $30,626. See Appendix E for county impact. 1 The analysis of existing property does not include multifamily. 12
  • 1. Existing Office Properties Direct spending in the existing inventory of office properties totaled $3.38 billion in 2006, which generated a $7.03 billion total impact on Colorado’s economy, more than 3.0% of Colorado’s total output (Table 5). Direct spending includes operating expenses related to administration, security, utilities, cleaning, building repairs and maintenance, and property maintenance (see Appendix F for the Building Owners and Managers Association definitions). This sector directly employed 38,973 workers at an average wage of $35,581. The impacts varied widely by region, with the Denver Metropolitan region accounting for two-thirds of the existing office impact. Appendix G provides county level impacts. Each dollar spent providing goods and services for existing office properties has a multiplier effect on the economy due to inter-industry relationships. For example, office properties occasionally need parking lots resurfaced, which affect the resurfacing company directly, but also impacts revenues for companies that sell resurfacing supplies and equipment. Hence, a dollar spent by a firm on commercial property has a ripple effect throughout the economy. Since some of the supplies and equipment are purchased from out of state, the multiplier effect is smaller than the national multiplier. The same holds true for counties within Colorado – goods and services are imported from other counties, which reduces the impact on the primary county. This regional multiplier disparity has been accounted for by the BEA RIMS II multipliers. 13
  • This analysis also considers the household (induced) impact, which is the indirect impact that household earnings and expenditures have on the economy. According to the 2005 Bureau of Labor Statistics Consumer Expenditures Survey, consumers spent 79% of their pretax income on goods and services (the rest goes to taxes). Non-shelter expenditures comprised 53% of pretax income. These expenditures have a profound impact on the economy, employing accountants, gas station attendants, grocery store clerks, real estate brokers, and so on. Direct employment related to existing office real estate was estimated at 38,973 employees earning $1.39 billion in 2006, for an average annual wage of $35,581. This includes administration, security, utilities, cleaning, building repairs and maintenance, and property maintenance employees servicing office real estate. Applying the multipliers to employment and earnings yields total employment of 74,756 employees earning $2.51 billion, for an average annual salary of $33,569. 2. Existing Industrial Properties Direct spending on the existing inventory of the industrial real estate sector totaled $301.4 million in 2006, which generated a total impact of $623.4 million, or 0.3% of Colorado’s economy (Table 6). This includes the existing inventory of manufacturing plants, warehouses, and laboratories. Direct spending includes operating expenses related to common area maintenance, water and sewer, repairs and maintenance, property management, real estate taxes, insurance, and other. 14
  • Direct employment related to industrial real estate was estimated at 3,293 employees earning $132.0 million in 2006, for an average annual wage of $40,092 (see Appendix H for county impacts). Applying the multipliers to employment and earnings yields total employment of 6,449 employees earning $230.3 million, for an average annual salary of $35,708. 3. Existing Retail Properties Direct spending in the retail real estate sector totaled $1.57 billion in 2006, which generated a $3.26 billion impact on Colorado’s economy, or roughly 1.4% of Colorado’s total output (Table 7). Direct spending includes operating expenses related to building maintenance, external property maintenance (i.e., parking lot), utilities, advertising and promotion, insurance, and general and administrative expenses, and so on (See Appendix I for Urban Land Institute definitions). 15
  • Direct employment related to retail real estate was estimated at 18,627 employees earning $705.7 million in 2006, for an average wage of $37,884 (see Appendix J for county impacts). This includes building maintenance, external property maintenance (i.e., parking lot), utilities, advertising and promotion, insurance, and general and administrative expenses. Applying the household multipliers to employment and earnings yields total employment of 35,106 employees earning $1.2 billion, for an average salary of $34,725. 4. Existing Hotel Properties Direct spending in the hotel real estate sector totaled $2.88 billion in 2006, which generated a $5.16 billion impact on Colorado’s economy, or roughly 2.2% of Colorado’s total output (Table 8). Direct spending operating expenditures per square foot were obtained from PKF Hospitality Research. This sector employed an estimated 45,793 workers at an average wage of $21,494 (see Appendix K for impact by county). This includes managerial operations and building maintenance workers, as well as hotel room cleaners. Applying the household multipliers to employment and earnings yields total employment of 67,255 employees earning $1.7 billion, for an average salary of $24,728. 16
  • IV. Economic Impacts of Tenant Improvements The economic impacts of tenant improvements were calculated separately. However, since tenant improvements are essentially construction, the RIMS II construction multipliers were employed to calculate the multiplier effects of direct spending on output, earnings, and employment resulting from industry expenditures on tenant improvements. Necessary data included income-producing property alterations by value, by type, and by county; industry soft costs (i.e., architectural, engineering, construction management, and site improvement); hard costs (construction materials and construction worker wages); and industry multipliers. Property alteration figures were obtained from McGraw-Hill Construction Research & Analytics; industry soft costs were estimated as a percentage of total project costs obtained by RS Means CostWorks for Building Construction; and RIMS II construction industry multipliers were obtained from the State Demography Office, compiled by the Bureau of Economic Analysis. A. Summary of Tenant Improvements Impacts Direct spending on tenant improvements totaled $344.9 million in 2006, for a total (direct and indirect) effect of $767.0 million on Colorado’s economy, or 0.33% of State GDP (Table 9). Income-producing property tenant improvements employed 3,000 direct employees earning an average wage of $42,062. The 7,186 direct and indirect employees earned an average wage of $36,181. See Appendix L for county impacts. 17
  • 1. Office Property Tenant Improvements Estimated direct spending on tenant improvements for office properties totaled $96.4 million in 2006, for a total impact of $212.6 million, or roughly 0.09% of Colorado’s economy (Table 10). The 840 direct employees earned an average of $42,060, while the 1,995 direct and indirect employees earned an average $36,117. See Appendix M for county impacts. 2. Industrial Property Tenant Improvements Estimated direct spending on industrial property tenant improvements totaled $14.7 million in 2006, for a multiplier effect of $33.2 million, or 0.01% of Colorado’s economy (Table 11). The 128 direct employees earned an average of $41,849, while the 312 direct and indirect employees earned an average $36,151. See Appendix N for county impacts. 18
  • 3. Retail Property Tenant Improvements Estimated direct spending on retail property tenant improvements totaled $94.0 million in 2006, for a multiplier effect of $211.9 million, or roughly 0.09% of Colorado’s economy (Table 12). The 820 direct employees earned an average of $42,065, while the 1,987 direct and indirect employees earned an average $36,186. See Appendix O for county impacts. 4. Hotel Property Tenant Improvements Estimated direct spending on hotel property tenant improvements totaled $112.5 million in 2006, for a multiplier effect of $248.7 million, or 0.11% of Colorado’s economy (Table 13). The 974 direct employees earned an average of $42,086, while the 2,321 direct and indirect employees earned an average $36,252. See Appendix P for county impacts. 19
  • 5. Multifamily Property Tenant Improvements Estimated direct spending on tenant improvements for multifamily properties totaled an estimated $27.2 million in 2006, for a multiplier effect of $60.6 million, or 0.03% of Colorado’s economy (Table 14). The 238 direct employees earned an average of $42,073, while the 571 direct and indirect employees earned an average $36,112. See Appendix Q for county impacts. 20
  • V. Economic Impacts of New Construction Necessary data for calculating the impacts of income-producing property construction include the amount of new income-producing space, by property type, and by county; site development costs; industry soft costs (i.e., architectural, engineering, and construction management); hard costs (construction materials and construction worker wages); and industry construction multipliers. Financing development costs (construction loan fees and construction loan interest) are accounted for in the Transactions and Refinancing sections. Data on new construction were obtained from McGraw-Hill Construction Research & Analytics; industry soft costs were estimated as a percentage of total project costs obtained by RS Means CostWorks for Building Construction; and RIMS II construction industry multipliers were obtained from the State Demography Office, compiled by the Bureau of Economic Analysis. A. Summary of Impacts for New Construction Direct spending on income-producing property construction totaled $3.3 billion in 2006, with an output multiplier effect of $6.9 billion, or roughly 3.0% of Colorado’s output (Table 15). Direct employment in new commercial and multifamily construction totaled 28,145 employees earning $1.2 million, for an average wage of $42,298. The employment multiplier effect of new construction totaled 64,224 direct and indirect employees earning an estimated $2.3 billion, for an average wage of $36,161 in 2006. See Appendix R for county impacts. Separately, the impacts of construction loan interest and fees attributable to new construction were estimated at $117.0 million. Table 15: Economic Impacts of New Construction, by Region, 2006 Direct Spending, Total Output, Earnings, w/Multiplier, Region Employment w/Multiplier 000s 000s 000s 000s Colorado Springs $300,118 $611,511 $111,952 $210,309 2,660 5,892 Denver Metro 1,368,077 3,197,129 512,550 1,097,491 12,014 30,099 Eastern Plains 8,034 13,429 3,018 4,718 72 131 Grand Junction 56,719 109,104 22,315 39,015 532 1,090 Mountain Resort 444,195 772,354 153,133 251,526 3,636 6,972 Mountain Rural 270,627 474,764 94,434 155,989 2,242 4,330 North Front Range 506,165 1,056,574 177,518 345,656 4,230 9,598 Pueblo 311,248 634,462 115,574 217,693 2,759 6,110 All Regions $3,265,183 $6,869,328 $1,190,494 $2,322,398 28,145 64,224 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver 21
  • 1. Office Property New Construction Direct spending on office property construction totaled $465.4 million in 2006, for a total effect of $1.01 billion, or 0.44% of Colorado’s economy (Table 16). The 4,054 direct employees earned an average of $42,068, while the 9,478 direct and indirect employees earned an average $36,084. See Appendix S for county impacts. Table 16: Economic Impacts of Office Construction, by Region, 2006 Direct Spending, Total Output, Earnings, w/Multiplier, Region Employment w/Multiplier 000s 000s 000s 000s Colorado Springs $91,291 $186,003 $34,070 $63,985 809 1,792 Denver Metro 237,507 556,420 87,797 189,843 2,087 5,231 Eastern Plains 240 401 90 141 2 4 Grand Junction 17,885 34,389 7,046 12,308 168 344 Mountain Resort 16,919 29,520 5,836 9,628 139 266 Mountain Rural 17,101 30,378 5,995 10,017 142 278 North Front Range 67,385 136,467 23,333 44,118 556 1,228 Pueblo 17,058 34,755 6,366 11,956 151 335 All Regions $465,385 $1,008,333 $170,534 $341,997 4,054 9,478 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver 2. Industrial Property New Construction Direct spending on industrial property construction totaled an estimated $518.0 million in 2006, for a total effect of $1.09 billion, or 0.47% of Colorado’s economy (Table 17). The 4,560 direct employees earned an average of $41,861, while the 10,386 direct and indirect employees earned an average $35,817. See Appendix T for county impacts. Table 17: Economic Impacts of Industrial Construction, by Region, 2006 Direct Spending, Total Output, Earnings, w/Multiplier, Region Employment w/Multiplier 000s 000s 000s 000s Colorado Springs $26,640 $54,306 $9,889 $18,630 236 523 Denver Metro 127,348 298,623 46,835 101,652 1,119 2,806 Eastern Plains 750 1,255 281 440 7 12 Grand Junction 17,236 33,185 6,759 11,843 162 332 Mountain Resort 6,448 11,199 2,210 3,633 53 101 Mountain Rural 1,618 2,832 575 945 14 26 North Front Range 46,013 94,657 15,971 30,713 382 855 Pueblo 291,916 595,075 108,359 204,143 2,587 5,731 All Regions $517,969 $1,091,131 $190,880 $371,999 4,560 10,386 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver 22
  • 3. Retail Property New Construction Direct spending on retail property construction totaled an estimated $536.4 million in 2006, for a multiplier effect of $1.18 billion, or 0.51% of Colorado’s output (Table 18). The 4,681 direct employees earned an average of $42,070, while the 11,080 direct and indirect employees earned an average $36,150. See Appendix U for county impacts. 4. Hotel Property New Construction Direct spending on hotel property construction totaled $313.5 million in 2006, for a multiplier effect of $574.1 million, or 0.25% of Colorado’s economy (Table 19). The 2,608 direct employees earned an average of $42,100, while the 5,249 direct and indirect employees earned an average $36,024. See Appendix V for county impacts. 23
  • 5. Multifamily Property New Construction Direct spending on multifamily construction totaled $1.4 billion in 2006, for a multiplier effect of $3.0 billion, or 1.3% of Colorado’s economy (Table 20). The 12,242 direct employees earned an average of $42,667, while the 28,031 direct and indirect employees earned an average $36,344. See Appendix W for county impacts. Table 20: Economic Impacts of Multifamily Construction, by Region, 2006 Direct Spending, Total Output, Earnings, w/Multiplier, Region Employment w/Multiplier 000s 000s 000s 000s Colorado Springs $88,705 $180,734 $33,105 $62,173 786 1,742 Denver Metro 663,282 1,545,691 252,256 534,276 5,822 14,577 Eastern Plains - - - - - - Grand Junction 4,866 9,356 1,917 3,348 46 94 Mountain Resort 341,461 593,816 117,729 193,406 2,795 5,361 Mountain Rural 43,500 76,195 15,170 25,022 360 695 North Front Range 290,091 610,781 102,164 200,535 2,433 5,564 Pueblo - - - - - - All Regions $1,431,905 $3,016,571 $522,341 $1,018,760 12,242 28,031 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver 24
  • VI. Economic Impacts of Commercial Property Transactions The buying and selling of commercial property in 2006 resulted in a total sales volume of $7.48 billion in the State of Colorado and an estimated $411.4 million in transaction fees (Tables 21 and 22). According to NorthMarq Capital, a typical commercial property transaction generates 5.5% of the total transaction amount in fees that are paid to professionals and businesses engaged in the transaction. This percentage represents the total of brokerage commissions, loan origination fees, title insurance fees, engineering costs, closing costs, and other typical fees incurred when the title of a commercial property changes hands. The impact of transaction fees on direct employment and earnings, including their multipliers, have not been calculated due to the ambiguous sources and uses of funds. For instance, loan origination fees paid to a bank are not bank expenditures nor purely profit; rather, these funds are reinvested in and out of the state. See Appendix B for notes on methodology. 25
  • VII. Economic Impacts of Commercial Property Refinancing Refinancing commercial property in 2006 created a total new loan volume of $3.14 billion in the State of Colorado, and an estimated $47.1 million in fees (Tables 23 and 24). According to NorthMarq Capital, a typical commercial property loan refinancing generates an average 1.5% of the total loan amount in fees paid to commercial banks, loan officers, appraisers, inspectors, engineers, and other professionals involved with refinancing. The indirect impacts of refinancing fees and mortgage interest on economic activity have not been calculated due to the ambiguous sources and uses of funds. For instance, mortgage interest paid to a bank are not bank expenditures nor purely profit; rather, these funds are deposited nationally and reinvested in and out of the state. See Appendix B for details on methodology. 26
  • VIII. Fiscal Impacts Commercial property impacts federal, state, and local governments in terms of property taxes, sales taxes, and development fees. Development fees were excluded from the fiscal analysis due to the extremely varying fee structures throughout Colorado counties and cities; however, fees were included in the output analysis since they were aggregated in the per square foot soft construction costs. Most fees are designed to directly offset a public cost, such as adding water meters, inspecting properties, or providing other services. Property taxes have a direct local impact based on the geographical locale of the property, whereas sales taxes depend on where purchases are made. Both have significant impacts on government revenues, contributing a combined estimated $1.26 billion to local, county, and state government. A. Commercial Property Taxes Commercial property taxes, excluding multifamily properties, totaled $1.18 billion in 2006, including county, city, school, and special districts. In 2006, office property taxes were estimated at $353.5 million; industrial property taxes, including manufacturing, totaled $430.7 million; retail property taxes were estimated at $326.2 million; and hotel property taxes were estimated at $67.0 million (Table 25). Colorado property taxes are calculated based on assessed values and mill levies (county, city, special district, and school). Property values are multiplied by the assessment ratio (29% for non-residential property), then multiplied by the property tax mill rate. Assessed property values for 2006 and estimated mill levies are published on the Department of Local Affairs, Division of Property Taxation website as of September 7, 2007 (http://www.dola.colorado.gov/dpt/publications/2006_annual_report_index.htm). See Appendix X and Appendix Y for county detail. 27
  • B. Commercial Property Sales Taxes Sales tax revenues obtained from direct spending on construction materials in the State of Colorado were estimated at $75.2 million in 2006. The total impact of sales tax revenues (direct and indirect impacts) were estimated at $160.7 million in 2006. This assumes that 60% of new construction are material purchases, 20% of additions to properties are material purchases, and 40% of tenant alterations are material purchases. Material purchases have a direct impact on municipalities and counties based on the location of the purchases (which may be a different county). Therefore, if an office building is constructed in Greeley, Colorado, a portion of the materials are probably purchased in Commerce City. Hence, Greeley does not receive the full benefit of the construction expenditure. For simplicity in estimating sales taxes from construction material purchases, an assumption was made that 100% of the materials are purchased in the county where construction takes place. This surely overstates the impacts for some counties and understates the impacts for other counties, but only the aggregate fiscal impact is reported here. Conclusion The impact of the income-producing property industry on Colorado’s economy is significant. Adding together the individual property sectors for existing property operations, new construction, transactions, and refinancing, commercial property and new multifamily construction directly contributed $12.3 billion to Colorado’s economy in 2006. Including the indirect impact on output, income-producing property contributed an estimated $24.3 billion to Colorado’s GDP, or 10.5% of the State economy (Table 26). Income-producing property direct employment totaled 137,832 in Colorado in 2006, or 6.1% of State employment, at an average wage of $32,832. Including the indirect employment, income-producing property employed 254,976 in 2006, at an average wage of $32,177. 28
  • Table 26: Summary Impacts of Commercial Real Estate and Multifamily Construction on Colorado’s Economy, 2006 Direct Spending (000) Total Output (000) Percent of Colorado’s GDP Existing1 Office 3,377,771 7,026,103 3.0% Industrial 301,387 623,368 0.3% Retail 1,574,128 3,256,520 1.4% Hotel 2,881,556 5,158,947 2.2% Total Existing 8,134,842 16,064,938 7.0% Tenant Improvements Office 96,426 212,582 0.1% Industrial 14,693 33,231 0.0% Retail 94,036 211,932 0.1% Hotel 112,504 248,651 0.1% Multifamily 27,195 60,587 0.0% Total TI 344,854 766,983 0.3% New Construction Office 465,385 1,008,333 0.4% Industrial 517,969 1,091,131 0.5% Retail 536,406 1,179,158 0.5% Hotel 313,518 574,134 0.2% Multifamily 1,431,905 3,016,571 1.3% Total Construction 3,265,183 6,869,327 3.0% Other2 Construction Period Interest/Fees 137,294 137,294 0.1% Transactions 411,408 411,408 0.2% Refinancing 47,093 47,093 0.0% Total Other 595,795 595,795 0.3% Total All 12,340,674 24,297,043 10.5% 1 Existing does not include multifamilies. 2 Other does not include the impact on employment, earnings, multiplier effect, or impact on individual counties due to the uncertainty of the source of, and redeployment of funds. Sources: McGraw-Hill Construction Research & Analytics, 2007; BOMA International, Experience Exchange Report 2007; Urban Land Institute, Dollars & Cents of Shopping Centers / The SCORE 2006; PKF Hospitality Research; NAIOP Industrial Income and Expense Report 2001-2002; Real Capital Analytics; NorthMarq Capital; University of Colorado-Boulder; University of Denver 29
  • Appendix A: Economic Impacts, by County, 2006 *EXISTING, TENANT IMPROVEMENTS, AND CONSTRUCTION Direct Direct Total Output, Earnings, w/Multiplier, Total Output, Earnings, w/Multiplier, County Employment w/Multiplier County Spending, Employment w/Multiplier Spending, 000s 000s 000s 000s 000s 000s 000s 000s Adams $847,960 $1,910,667 $331,486 $666,440 9,129 19,490 La Plata $82,382 $135,071 $30,243 $45,158 1,157 1,669 Alamosa 23,042 36,230 9,268 13,320 315 456 Lake 33,507 57,866 11,883 19,103 294 540 Arapahoe 1,393,234 3,090,047 554,390 1,086,026 15,827 32,334 Larimer 520,519 951,538 192,722 316,426 5,337 9,485 Archuleta 8,357 14,067 3,047 4,701 96 152 Las Animas 16,121 25,096 6,297 9,049 230 325 Baca 1,954 3,113 870 1,226 25 37 Lincoln 8,859 14,440 3,489 5,231 99 159 Bent 2,465 3,907 1,029 1,474 33 49 Logan 25,772 40,840 10,467 15,117 351 509 Boulder 794,118 1,755,491 313,782 614,778 9,292 18,610 Mesa 195,515 350,032 79,070 127,418 2,348 3,971 Chaffee 19,955 32,721 7,324 10,941 281 405 Mineral 2,026 3,404 830 1,217 24 37 Cheyenne 2,812 4,545 1,171 1,709 33 52 Moffat 14,351 23,733 5,307 7,977 182 271 Clear Creek 9,904 16,430 3,802 5,649 130 193 Montezuma 29,980 49,561 11,278 16,837 401 592 Conejos 2,117 3,341 894 1,270 28 41 Montrose 44,456 80,447 17,930 29,228 515 894 Costilla 1,266 1,992 526 749 17 25 Morgan 16,569 28,886 6,683 10,139 194 313 Crowley 706 1,125 304 433 9 14 Otero 18,110 28,749 7,575 10,857 244 356 Custer 1,777 2,730 637 929 27 37 Ouray 2,832 4,721 1,072 1,610 35 54 30 Delta 11,105 19,354 4,668 7,223 141 228 Park 9,739 16,795 3,475 5,563 87 158 Denver 2,018,989 4,410,503 807,296 1,553,129 24,450 47,624 Phillips 2,904 4,650 1,282 1,822 37 56 Dolores 12,653 21,493 5,399 7,881 136 222 Pitkin 340,130 569,276 117,798 184,652 4,045 6,318 Douglas 428,838 964,024 168,492 337,017 4,649 9,868 Prowers 14,657 22,877 5,816 8,337 206 294 Eagle 550,747 904,154 189,822 291,536 7,587 11,042 Pueblo 476,610 947,624 183,013 329,558 4,830 9,657 El Paso 847,023 1,586,934 342,970 564,421 11,014 18,367 Rio Blanco 7,199 11,920 2,665 4,007 90 136 Elbert 315,190 641,237 117,742 220,718 2,803 6,187 Rio Grande 7,796 12,405 3,268 4,687 100 150 Fremont 28,520 54,752 11,679 19,616 339 602 Routt 183,162 303,201 63,696 98,396 2,379 3,559 Garfield 160,328 264,997 54,910 85,309 1,976 2,980 Saguache 1,035 1,648 461 649 13 20 Gilpin 213,870 366,126 73,534 118,731 2,057 3,593 San Juan 1,348 2,227 512 760 18 27 Grand 184,233 304,082 63,281 97,952 2,441 3,618 San Miguel 121,580 199,535 41,687 64,142 1,676 2,438 Gunnison 66,616 112,097 23,519 36,785 760 1,212 Sedgwick 2,835 4,470 1,153 1,656 40 57 Hinsdale 1,658 2,687 580 872 25 35 Summit 278,854 452,795 96,690 146,255 4,146 5,830 Huerfano 6,055 9,383 2,298 3,317 88 123 Teller 30,222 57,685 11,325 19,735 384 659 Jackson 1,435 2,397 565 835 18 27 Washington 2,154 3,450 952 1,352 27 41 Jefferson 1,006,532 2,231,263 401,639 785,150 11,595 23,488 Weld 269,372 491,505 101,264 164,944 2,738 4,881 Kiowa 7,829 12,410 3,265 4,675 105 153 Yuma 4,388 7,017 1,900 2,712 57 85 Kit Carson 8,611 13,484 3,355 4,853 125 176 COLORADO 11,744,880 23,701,247 4,525,343 8,204,261 137,831 254,976 Sources: McGraw-Hill Construction Research & Analytics, 2007; BOMA International, Experience Exchange Report 2007; Urban Land Institute, Dollars & Cents of Shopping Centers / The SCORE 2006; PKF Hospitality Research; NAIOP Industrial Income and Expense Report 2001-2002; University of Colorado-Boulder; University of Denver. County impacts exclude economic effects of transactions and refinancing.
  • Appendix B: Notes to Methodology EXISTING PROPERTIES To estimate direct spending (from total operating expenses) by property type and by county, total area was multiplied by the per square foot (PSF) operating expenses. Total square feet of commercial and multifamily property space, by property type, by county, was obtained from McGraw-Hill Construction Research & Analytics. Operating expenses by property type were obtained from BOMA, ULI, NAIOP, PKF Hospitality Research, and RS Means CostWorks. When possible, expenditures were segmented by services to buildings, management services, and utilities. Total operating expenses were multiplied by the output multiplier to estimate the total impact of the sector on Colorado’s GDP. The direct earnings per dollar of sales to final demand were used to estimate the direct impact of expenditures in the commercial real estate sector. The total earnings per dollar of sales to final demand multipliers were used to estimate the total (direct and multiplied) impacts of the sector on incomes. Similarly, the direct employment per million dollars of sales to final demand multipliers were used to estimate the impacts of the sector on employment; and total employment per dollar of sales to final demand was used to estimate the total (direct and multiplied) employment impact. Employment is limited to those employed by the commercial real estate sector, specifically omitting those employees working in the commercial real estate space (i.e., the retail space lessor, not the clothing store clerk). Note that Broomfield was not included in the McGraw-Hill Construction Research & Analytics data for existing commercial real estate. Broomfield became a county in 2001, comprised of land from Adams, Boulder, Jefferson, and Weld counties. The impact from Broomfield County real estate is included in these four counties. 1. OFFICE DATA Per square foot (PSF) office operating costs were obtained from the Experience Exchange Report 2007 published by BOMA International (Table 27). BOMA reports PSF operating costs categorized by cleaning, repairs/maintenance, utilities, roads/grounds, security and administrative (Appendix F). For the purpose of this study, these categories were then grouped by services to buildings (cleaning, repairs/maintenance, roads/grounds, and security), management services (administrative), and utilities. Taxes have been included by BOMA in the administrative seg- ment of operating expenses. 31
  • BOMA segregated the data by three regions: Denver, Suburbs, and Boulder. Denver and Suburbs had similar cost estimates ($11.11 PSF and $14.19 PSF, respectively). Boulder estimates were much less ($6.45 PSF), since this analysis was performed at the county level and not the city level. 2. RETAIL DATA Per square foot retail operating expenses were provided in the Urban Land Institute’s Dollars and Cents of Shopping Centers (see Table 28). The PSF operating expenses were categorized by maintenance and housekeeping, advertising and promotion, real estate taxes, insurance, and general and administrative functions (Appendix I). For the purpose of this study, these categories were then grouped by services to buildings (cleaning, repairs/maintenance, roads/grounds, and security) and management services (administrative). 32
  • ULI data was segmented into five categories of shopping centers: Super Regional, Regional, Super Community, Neighborhood, and Convenience. A weighted average was calculated using the total area by type in Colorado, for total PSF operating expenditures of $9.84. 3. INDUSTRIAL DATA Per square foot industrial operating expenses were provided in NAIOP’s Industrial Income and Expense Report: 2001- 2002 (Table 29). This was the most current expense report detailing operating expenses for the industry; therefore expenses were inflated appropriately for 2006 using the Denver-Boulder-Greeley CPI (Table 30). The median operating expenses of $1.08 were applied throughout Colorado. 33
  • Table 30: Denver-Boulder-Greeley CPI Percentage Year Index Change 2001 181.3 - 2002 184.8 1.93% 2003 186.8 1.08% 2004 187.0 0.11% 2005 190.9 2.09% 2006 197.7 3.56% Source: Bureau of Labor Statistics, http://data.bls.gov/ 4. HOTEL DATA Per square foot hotel operating expenses were obtained from PKF Hospitality Research and were estimated at $46.98 per square foot. 5. MULTIPLIERS Regional Input-Output Modeling System (RIMS II) multipliers published by the Bureau of Economic Analysis were used to estimate the total output, earnings, and employment multiplier effects by industry sector by region in Colorado. RIMS II multipliers are segmented by industry sector and by economic region in Colorado (Appendix C). This study employs the multipliers with the impact of local government included. Multipliers are reported by output, earnings, and employment and impacts can be calculated as a function of output, earnings, and employment, or from output alone. For instance, if the utilities industry output multiplier is 2.1365 for the State of Colorado, then the impact of $1 million in utilities spending on Colorado’s economy is $2.1365 million ($1 million direct spending and $1.1365 indirect). Direct earnings can then be calculated using the direct earnings per dollar of sales to final demand multiplier, which in this scenario is 0.1808. Therefore, the $1 million in utilities spending equates to $180,800 in direct earnings. Similarly, employment can be calculated using the direct employment per million dollars of sales to final demand multiplier, which in this scenario is 2.2577, or 2.2577 employees for every $1 million in utility expenditures. Conversely, simple earnings and employment multipliers can be utilized if direct earnings and employment are already known. TENANT IMPROVEMENTS & CONSTRUCTION Tenant improvements and construction area and value were obtained from McGraw-Hill Construction Research & Analytics. This value does not include soft costs or site development. Soft costs for architectural, engineering, and construction management were obtained from RS Means CostWorks, while site development costs were obtained anecdotally from the Clayton Lane2 case. 2 The Clayton Lane case was prepared November 8, 2006 by David B. Agnew, Esq., and Thomas G. Thibodeau, Ph.D., as an analysis tool of a major redevelopment in Cherry Creek, Colorado. 34
  • HARD AND SOFT COSTS The economic value of construction spending to the Colorado economy can be separated into two components, soft costs and hard costs. Soft costs are defined as the initial spending on a construction project that include architects, engineers, development (land entitlement), land planning, legal services, land improvements, landscape architecture, and infrastructure improvements (Table 31). Hard costs are defined as direct outlays during the construction process and include both labor and building materials plus construction equipment costs. The labor spending represents the employment in the construction sector of skilled workers, including carpenters, steel workers, electricians, plumbers, building engineers, and heavy equipment operators. It also includes indirectly employed workers in such companies as raw materials producers of lumber, concrete, and steel. BUILDING OPERATIONS Buildings also contribute economically to the State of Colorado’s economy after construction is complete and the space is occupied. This contribution can be defined as the amount of money spent on an annual basis to operate, maintain, and clean the property; property management services used to bill and maintain relationships with tenants; the utilities that the building consumes; and financing costs that are received by lenders within the State of Colorado. TRANSACTIONS AND REFINANCING Two industries rely heavily on commercial real estate transactions: commercial real estate brokerage, and commercial mortgage brokerage and investment. Commercial real estate brokers make their entire profession from buying and selling real estate for investors and leasing of commercial space to and for tenants. Banks invest a large portion of their mortgage pools in commercial properties and draw significant fees from securitizing large portfolios of commercial mortgages into commercial mortgage-backed security (CMBS) pools. Transaction and refinancing values and area were obtained from Real Capital Analytics’ “Capital Trends Monthly”. This data encompassed all commercial transactions in Colorado over $2.5 million for the full year of 2006. Real Capital Analytics tracks the major metropolitan areas in Colorado: Denver Metro, North Front Range, and Colorado Springs. Total transaction and refinancing value were allocated to each county in these regions on a pro rata basis using square footage for each property type. Transaction and refinancing volumes for counties outside the Front Range were estimated in two steps. First, the square feet of commercial space that was either sold or refinanced was estimated using the same proportion sold or refinanced in the Front Range. We then used the average Front Range property price per square foot for actual transactions and refinancing (obtained from Real Capital Analytics) to estimate total transaction/refinancing volume. For Colorado’s Front Range, Real Capital Analytics estimated 2006 transaction volume at $6.5 billion and 2006 refinancing volume at $2.5 billion. For non-Front Range counties, we estimate 2006 transaction volume at $1.4 billion and 2006 refinancing volume at $610 million. 35
  • Appendix C: RIMS II Colorado Regions Region 1 - Eastern Plains Agricultural Bent, Cheyenne, Crowley, Elbert, Kiowa, Kit Carson, Lincoln, Logan, Otero, Phillips, Sedgwick, Washington Counties Region 2 - Southern Colorado Alamosa, Baca, Conejos, Costilla, Custer, Huerfano, Las Animas, Prowers, Rio Grande, Saguache Counties Region 3 - Pueblo Fremont, Pueblo Counties Region 4 - Colorado Springs El Paso, Teller Counties Region 5 - Denver Metropolitan Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson Counties Region 6 - Larimer-Weld Larimer, Morgan, Weld Counties Region 7 - Scenic and Resort Chaffee, Clear Creek, Dolores, Eagle, Gilpin, Grand, Gunnison, Hinsdale, Jackson, Lake, Mineral, Ouray, Pitkin, Routt, San Juan, San Miguel, Summit, Archuleta, La Plata, Montezuma Counties Region 8 - Western Slope Urban Delta, Mesa, Montrose Counties Region 9 - Energy and Mining Garfield, Moffat, Rio Blanco Counties Region 10 - State of Colorado Colorado Source: Bureau of Labor Statistics, Colorado State Demography Office 36
  • Appendix D: Supply of Existing Commercial and Multifamily Property (000s sf), by Property Type, by County, 2006 County Office Industrial Retail Hotel Multifamily Total County Office Industrial Retail Hotel Multifamily Total ADAMS 12,647 37,149 18,123 2,194 40,431 110,544 LA PLATA 1,144 898 1,723 1,260 4,051 9,076 ALAMOSA 394 293 856 229 755 2,527 LAKE 274 79 155 16 405 929 ARAPAHOE 44,076 24,954 27,498 3,718 82,863 183,110 LARIMER 8,289 12,997 11,822 1,673 27,599 62,380 ARCHULETA 74 328 134 65 797 1,398 LAS ANIMAS 261 159 495 208 777 1,900 BACA 68 336 72 3 97 576 LINCOLN 108 108 146 34 175 570 BENT 80 94 70 17 125 385 LOGAN 470 721 894 239 937 3,260 BOULDER 19,722 28,220 17,592 3,439 37,404 106,376 MESA 3,049 4,467 6,024 1,030 8,763 23,333 CHAFFEE 239 199 464 308 696 1,905 MINERAL 14 1,180 12 11 21 1,239 CHEYENNE 104 120 31 6 67 328 MOFFAT 247 309 495 161 967 2,178 CLEAR CREEK 177 54 384 103 479 1,197 MONTEZUMA 356 560 1,016 372 603 2,908 CONEJOS 83 125 48 11 202 469 MONTROSE 640 1,023 1,106 192 1,283 4,243 COSTILLA 59 21 13 7 81 182 MORGAN 493 1,183 763 68 1,022 3,529 CROWLEY 27 25 24 3 68 147 OTERO 462 1,029 643 129 904 3,166 CUSTER 14 88 8 34 91 236 OURAY 46 553 20 26 107 752 DELTA 254 491 622 56 613 2,036 PARK 75 53 78 8 163 377 DENVER 67,637 62,470 33,990 10,004 121,002 295,102 PHILLIPS 129 89 113 4 97 432 DOLORES 174 9,142 17 4 16 9,353 PITKIN 907 315 1,329 1,753 5,483 9,786 DOUGLAS 8,364 3,769 10,362 990 20,662 44,148 PROWERS 257 538 459 171 559 1,984 37 EAGLE 1,292 741 2,434 4,360 15,829 24,656 PUEBLO 3,857 13,332 6,046 970 10,290 34,495 EL PASO 25,225 29,166 28,405 6,077 59,072 147,945 RIO BLANCO 194 183 156 75 343 950 ELBERT 88 67 119 2 72 349 RIO GRANDE 237 338 215 39 489 1,317 FREMONT 533 2,189 1,179 115 1,618 5,634 ROUTT 693 574 1,059 1,213 6,873 10,412 GARFIELD 1,079 662 2,133 986 3,389 8,248 SAGUACHE 55 49 28 - 124 256 GILPIN 24 220 91 967 405 1,708 SAN JUAN 24 33 41 16 62 177 GRAND 227 296 618 1,334 4,253 6,728 SAN MIGUEL 232 152 303 976 1,743 3,406 GUNNISON 362 223 597 593 2,211 3,986 SEDGWICK 59 114 92 29 86 380 HINSDALE 5 63 12 34 48 163 SUMMIT 671 162 2,441 2,613 15,639 21,526 HUERFANO 81 65 141 91 408 786 TELLER 177 151 445 321 569 1,664 JACKSON 52 88 32 9 58 239 WASHINGTON 95 138 75 3 143 453 JEFFERSON 25,646 21,674 28,922 3,320 58,297 137,858 WELD 5,363 9,495 6,278 594 14,847 36,576 KIOWA 60 3,677 28 67 32 3,864 YUMA 142 153 195 15 237 742 KIT CARSON 156 255 164 118 205 898 Total 238,039 278,398 219,850 53,482 557,706 1,347,475 Source: McGraw-Hill Construction Research & Analytics
  • Appendix E: Economic Impacts of Existing Commercial Property, by County, 2006 Direct Direct Total Total Output, Earnings, w/Multiplier, Earnings, w/Multiplier, County Spending, Employment w/Multiplier County Spending, Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $441,122 $957,390 $181,228 $341,325 5,554 10,529 La Plata $82,207 $134,768 $30,183 $45,060 1,156 1,666 Alamosa 21,617 33,819 8,707 12,450 302 432 Lake 5,743 9,659 2,314 3,413 67 105 Arapahoe 1,004,734 2,179,875 410,790 775,499 12,414 23,778 Larimer 286,248 497,625 113,130 172,410 3,437 5,463 Archuleta 5,090 8,395 1,921 2,855 69 101 Las Animas 16,121 25,096 6,297 9,049 230 325 Baca 1,954 3,113 870 1,226 25 37 Lincoln 4,107 6,499 1,704 2,441 56 82 Bent 2,465 3,907 1,029 1,474 33 49 Logan 23,815 37,570 9,732 13,968 334 478 Boulder 580,058 1,253,971 234,679 443,692 7,412 13,895 Mesa 134,270 232,224 54,971 85,287 1,774 2,794 Chaffee 19,780 32,418 7,264 10,843 279 402 Mineral 2,026 3,404 830 1,217 24 37 Cheyenne 2,062 3,290 889 1,268 26 40 Moffat 14,113 23,314 5,224 7,840 180 268 Clear Creek 9,640 15,972 3,711 5,500 127 189 Montezuma 28,474 46,947 10,760 15,987 389 569 Conejos 2,117 3,341 894 1,270 28 41 Montrose 26,133 45,215 10,711 16,618 343 542 Costilla 1,266 1,992 526 749 17 25 Morgan 16,569 28,886 6,683 10,139 194 313 Crowley 706 1,125 304 433 9 14 Otero 17,657 27,992 7,406 10,591 240 349 Custer 1,777 2,730 637 929 27 37 Ouray 2,483 4,115 953 1,413 32 48 Delta 10,930 19,018 4,599 7,104 140 224 Park 2,018 3,388 814 1,199 24 37 Denver 1,688,809 3,645,133 678,222 1,285,135 21,554 40,383 Phillips 2,904 4,650 1,282 1,822 37 56 38 Dolores 12,653 21,493 5,399 7,881 136 222 Pitkin 181,585 293,991 63,148 95,053 2,748 3,832 Douglas 238,333 517,672 98,109 184,767 2,975 5,673 Prowers 14,657 22,877 5,816 8,337 206 294 Eagle 431,788 697,602 148,822 224,311 6,614 9,177 Pueblo 152,974 287,920 62,816 103,183 1,962 3,303 El Paso 846,848 1,586,642 342,905 564,319 11,012 18,364 Rio Blanco 7,199 11,920 2,665 4,007 90 136 Elbert 2,266 3,633 1,013 1,435 29 43 Rio Grande 6,880 10,856 2,908 4,129 91 134 Fremont 23,174 43,861 9,684 15,869 291 497 Routt 127,964 207,357 44,679 67,209 1,927 2,693 Garfield 120,667 195,007 41,203 62,370 1,650 2,349 Saguache 1,035 1,648 461 649 13 20 Gilpin 41,627 67,058 14,163 21,390 648 893 San Juan 1,348 2,227 512 760 18 27 Grand 128,898 208,003 44,207 66,680 1,988 2,750 San Miguel 94,060 151,753 32,202 48,589 1,451 2,007 Gunnison 34,425 56,202 12,423 18,593 497 707 Sedgwick 2,835 4,470 1,153 1,656 40 57 Hinsdale 1,658 2,687 580 872 25 35 Summit 264,047 427,085 91,586 137,888 4,025 5,598 Huerfano 6,055 9,383 2,298 3,317 88 123 Teller 19,281 35,394 7,242 12,067 287 444 Jackson 1,435 2,397 565 835 18 27 Washington 2,154 3,450 952 1,352 27 41 Jefferson 733,182 1,590,840 300,620 566,673 9,193 17,468 Weld 156,143 272,049 62,811 95,334 1,820 2,936 Kiowa 7,829 12,410 3,265 4,675 105 153 Yuma 4,214 6,725 1,835 2,610 55 82 Kit Carson 8,611 13,484 3,355 4,853 125 176 All Regions 8,134,842 16,064,938 3,208,657 5,621,867 106,686 183,566 Sources: McGraw-Hill Construction Research & Analytics, 2007; BOMA International, Experience Exchange Report 2007; Urban Land Institute, Dollars & Cents of Shopping Centers / The SCORE 2006; PKF Hospitality Research; NAIOP Industrial Income and Expense Report 2001-2002; University of Colorado-Boulder; University of Denver Note: Omits existing multifamily housing.
  • Appendix F: BOMA Office Expense Definitions Total Operating Expenses: Total or summation of cleaning, repairs/maintenance, utilities, roads/grounds, security and Administrative. Cleaning: All required items for both daytime and nighttime cleaning of offices, public areas, atrium, elevators, restrooms, windows, and so forth. Cleaning includes upkeep and ordinary expenses, as well as replacement of cleaning equipment and supplies. It does not include any expenses for machine rooms and other restricted access areas. Repairs/Maintenance: All expenses for elevators, HVAC, electrical, structural/roof, plumbing, and other building maintenance (including common areas, parking lots and general upkeep). Total payroll from individual item categories should be included in payroll. Utilities: All utilities expensed to the building. Includes any energy that is sub-metered, even if tenants are directly off-setting the costs; show the total expenses, not the net expense after tenant reimbursement. Roads/Ground: Any expense related to exterior maintenance (exclude parking lot r/m) other than the building structure (or related remote mechanical equipment), such as landscaping, snow removal, site signage, site lighting, and so forth. Security: Expenses related to the security of tenants and buildings. Administrative: Expenses directly connected with administration of the building. Administrative expenses do not include general maintenance/operation costs. Source: BOMA International. Experience Exchange Report 2007. 2007, pages 554-555. 39
  • Appendix G: Economic Impacts of Existing Office Real Estate, by County, 2006 Direct Direct Total Output, Earnings, w/Multiplier, Total Output, Earnings, w/Multiplier, County Spending, Employment w/Multiplier County Spending, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $179,461 $390,601 $73,669 $139,297 2,081 4,142 La Plata $16,232 $27,394 $6,523 $9,645 178 287 Alamosa 5,584 8,868 2,439 3,449 70 106 Lake 3,887 6,560 1,562 2,310 43 69 Arapahoe 625,444 1,361,296 256,747 485,469 7,251 14,435 Larimer 117,614 204,466 47,206 71,588 1,286 2,129 Archuleta 1,052 1,776 423 625 12 19 Las Animas 3,705 5,883 1,618 2,288 46 70 Baca 964 1,531 421 595 12 18 Lincoln 1,531 2,452 667 952 19 29 Bent 1,134 1,816 494 705 14 21 Logan 6,665 10,674 2,905 4,143 83 126 Boulder 279,850 609,100 114,879 217,219 3,245 6,459 Mesa 43,261 75,443 18,176 28,176 507 847 Chaffee 3,387 5,716 1,361 2,013 37 60 Mineral 205 346 82 122 2 4 Cheyenne 1,476 2,365 644 918 18 28 Moffat 3,502 5,985 1,407 2,112 38 62 Clear Creek 2,513 4,240 1,010 1,493 28 44 Montezuma 5,047 8,517 2,028 2,999 55 89 Conejos 1,175 1,866 513 726 15 22 Montrose 9,079 15,833 3,815 5,913 106 178 Costilla 842 1,337 368 520 11 16 Morgan 6,997 12,165 2,809 4,259 77 127 Crowley 389 623 170 242 5 7 Otero 6,554 10,497 2,857 4,074 82 124 Custer 199 316 87 123 2 4 Ouray 647 1,092 260 385 7 11 Delta 3,600 6,278 1,513 2,345 42 71 Park 1,059 1,787 425 629 12 19 40 Denver 959,765 2,088,953 393,987 744,968 11,127 22,151 Phillips 1,825 2,923 796 1,135 23 34 Dolores 2,465 4,160 991 1,465 27 44 Pitkin 12,874 21,727 5,173 7,650 141 228 Douglas 118,681 258,311 48,719 92,120 1,376 2,739 Prowers 3,649 5,795 1,594 2,254 46 69 Eagle 18,337 30,948 7,369 10,896 202 324 Pueblo 54,736 102,853 22,621 37,039 630 1,115 El Paso 357,937 672,587 147,928 242,210 4,123 7,291 Rio Blanco 2,750 4,699 1,105 1,658 30 49 Elbert 1,249 2,000 544 776 16 24 Rio Grande 3,364 5,342 1,469 2,078 42 64 Fremont 7,563 14,211 3,125 5,117 87 154 Routt 9,828 16,586 3,949 5,840 108 174 Garfield 15,308 26,158 6,151 9,231 167 273 Saguache 779 1,236 340 481 10 15 Gilpin 343 579 138 204 4 6 San Juan 340 575 137 202 4 6 Grand 3,216 5,428 1,293 1,911 35 57 San Miguel 3,289 5,552 1,322 1,955 36 58 Gunnison 5,143 8,680 2,067 3,056 57 91 Sedgwick 840 1,346 366 522 10 16 Hinsdale 76 128 30 45 1 1 Summit 9,516 16,061 3,824 5,655 105 168 Huerfano 1,149 1,825 502 710 14 22 Teller 2,506 4,709 1,036 1,696 29 51 Jackson 732 1,235 294 435 8 13 Washington 1,353 2,167 590 841 17 26 Jefferson 363,911 792,062 149,387 282,467 4,219 8,399 Weld 76,098 132,292 30,543 46,318 832 1,377 Kiowa 854 1,368 372 531 11 16 Yuma 2,020 3,235 881 1,256 25 38 Kit Carson 2,217 3,550 966 1,378 28 42 All Regions 3,377,771 7,026,103 1,386,691 2,509,433 38,973 74,756 Sources: McGraw-Hill Construction Research & Analytics, 2007; BOMA International, Experience Exchange Report 2007; University of Colorado-Boulder; University of Denver.
  • Appendix H: Economic Impacts of Existing Industrial Real Estate, by County, 2006 Direct Total Direct Total Earnings, w/Multiplier, Earnings, w/Multiplier, County Spending, Output, Employment w/Multiplier County Spending, Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $40,216 $88,896 $17,548 $32,629 441 915 La Plata $973 $1,656 $422 $614 10 17 Alamosa 317 509 146 205 4 6 Lake 86 146 37 54 1 1 Arapahoe 27,015 59,715 11,788 21,918 296 615 Larimer 14,070 24,834 6,097 9,114 148 252 Archuleta 355 605 154 224 4 6 Las Animas 172 276 79 111 2 3 Baca 364 584 168 235 4 7 Lincoln 117 188 54 76 1 2 Bent 101 164 47 66 1 2 Logan 780 1,260 360 508 9 14 Boulder 30,550 67,530 13,331 24,787 335 695 Mesa 4,836 8,553 2,165 3,316 54 93 Chaffee 215 366 93 136 2 4 Mineral 1,277 2,175 555 807 13 22 Cheyenne 130 210 60 85 2 2 Moffat 334 576 145 213 4 6 Clear Creek 58 99 25 37 1 1 Montezuma 607 1,033 263 383 6 11 Conejos 135 217 62 88 2 2 Montrose 1,107 1,958 496 759 12 21 Costilla 23 37 11 15 0 0 Morgan 1,281 2,261 555 830 13 23 Crowley 27 43 12 17 0 0 Otero 1,114 1,798 513 725 13 20 Custer 96 154 44 62 1 2 Ouray 599 1,019 260 378 6 10 Delta 532 941 238 365 6 10 Park 57 98 25 36 1 1 41 Denver 67,629 149,490 29,509 54,870 741 1,539 Phillips 96 155 44 63 1 2 Dolores 9,897 16,853 4,297 6,251 104 173 Pitkin 341 580 148 215 4 6 Douglas 4,081 9,020 1,781 3,311 45 93 Prowers 582 935 269 377 7 11 Eagle 802 1,366 348 507 8 14 Pueblo 14,433 27,847 6,401 10,398 158 292 El Paso 31,575 60,920 14,003 22,748 347 640 Rio Blanco 198 342 86 127 2 3 Elbert 73 118 34 47 1 1 Rio Grande 366 587 169 237 4 7 Fremont 2,370 4,573 1,051 1,708 26 48 Routt 622 1,058 270 393 7 11 Garfield 717 1,236 311 458 8 13 Saguache 53 85 24 34 1 1 Gilpin 238 406 104 151 3 4 San Juan 36 61 16 23 0 1 Grand 321 546 139 202 3 6 San Miguel 165 281 72 104 2 3 Gunnison 241 411 105 152 3 4 Sedgwick 124 200 57 81 1 2 Hinsdale 69 117 30 43 1 1 Summit 176 299 76 111 2 3 Huerfano 70 112 32 45 1 1 Teller 164 316 73 118 2 3 Jackson 96 163 42 60 1 2 Washington 149 241 69 97 2 3 Jefferson 23,463 51,865 10,238 19,037 257 534 Weld 10,279 18,142 4,454 6,658 108 184 Kiowa 3,980 6,427 1,834 2,589 47 73 Yuma 166 268 76 108 2 3 Kit Carson 276 445 127 179 3 5 COLORADO 301,387 623,368 132,039 230,295 3,293 6,449 Sources: McGraw-Hill Construction Research & Analytics, 2007; NAIOP Industrial Income and Expense Report 2001-2002; University of Colorado-Boulder; University of Denver.
  • Appendix I: Urban Land Institute Retail Expense Definitions Total Operating Expenses: Expenses for building maintenance; the parking lot, mall, and other common areas; the central utility system; office area services; advertising and promotion; real estate taxes; insurance; and general and administrative functions. Utilities: All costs of tenant space HVAC and utilities provided by centers with central plants or systems. The center then bills tenants for these services. Building maintenance and repair: Roof maintenance and repair and such items as painting, repairs, systems equipment maintenance, and alterations to structures (not capitalized, etc.). Total real estate taxes: Taxes paid by the building owners on the county-assessed property values, based on county, city, special, and school mill levies. Total insurance: Public liability, property, terrorism, special (e.g., earthquake/fire), and other-such as rental value (use and occupancy) insurance. Total general and administrative expenses: Management agent fees (fees paid to an outside agent for managing the center’s operations); leasing agent fees (fees paid to an outside agent for leasing tenant space); bad debt allowance; on-site payroll and benefits; legal and audit services; other professional services; etc. Total advertising and promotion: Contributions in kind, such as salaries, expenses, and other services (for example, cost of furnishing a meeting place for public use, net of any reimbursements). This category includes costs for advertising, promotions/special events, Christmas décor/events, marketing administration, and cash contributions to the merchants association. Parking lot, mall, and other common areas: Maintenance, repair, and striping of parking lots; utilities, including lighting and power used for maintenance of signs that are the landlord’s responsibility; security; heating, ventilating, and air conditioning (HVAC) of an enclosed mall; snow and trash removal; maintenance of landscaping of grounds; maintenance of elevators and escalators; etc. Other office area services: Janitorial services, lighting, etc., of office areas occupied by tenants. Source: Urban Land Institute. Dollars & Cents of Shopping Centers / The SCORE 2006. 2006, page 7 42
  • Appendix J: Economic Impacts of Existing Retail Real Estate, by County, 2006 Direct Total Direct Total Earnings, w/Multiplier, Earnings, w/Multiplier, County Spending, Output, Employment w/Multiplier County Spending, Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $129,763 $287,744 $58,004 $106,963 1,544 3,077 La Plata $12,337 $21,020 $5,463 $7,919 140 227 Alamosa 6,130 9,857 2,903 4,048 78 119 Lake 1,110 1,892 492 713 13 20 Arapahoe 196,887 436,590 88,009 162,293 2,342 4,669 Larimer 84,643 149,775 37,361 55,685 958 1,593 Archuleta 957 1,631 424 615 11 18 Las Animas 3,543 5,698 1,678 2,340 45 69 Baca 516 829 244 340 7 10 Lincoln 1,048 1,690 496 695 13 20 Bent 500 807 237 332 6 10 Logan 6,403 10,325 3,028 4,243 82 124 Boulder 125,959 279,310 56,304 103,827 1,499 2,987 Mesa 43,135 76,348 19,726 30,008 519 870 Chaffee 3,320 5,656 1,470 2,131 38 61 Mineral 87 148 38 56 1 2 Cheyenne 220 355 104 146 3 4 Moffat 3,544 6,109 1,562 2,289 40 65 Clear Creek 2,751 4,688 1,218 1,766 31 51 Montezuma 7,276 12,397 3,222 4,671 83 134 Conejos 345 555 164 228 4 7 Montrose 7,916 14,012 3,620 5,507 95 160 Costilla 93 149 44 61 1 2 Morgan 5,461 9,663 2,410 3,592 62 103 Crowley 170 274 80 113 2 3 Otero 4,604 7,425 2,178 3,051 59 89 Custer 60 97 29 40 1 1 Ouray 147 250 65 94 2 3 Delta 4,453 7,881 2,036 3,098 54 90 Park 560 954 248 360 6 10 43 Denver 243,367 539,657 108,786 200,606 2,895 5,772 Phillips 808 1,303 382 535 10 16 Dolores 124 211 55 79 1 2 Pitkin 9,513 16,208 4,212 6,106 108 175 Douglas 74,192 164,519 33,164 61,156 883 1,760 Prowers 3,287 5,286 1,557 2,171 42 64 Eagle 17,426 29,692 7,717 11,187 198 320 Pueblo 43,287 84,292 19,649 31,884 515 924 El Paso 203,378 396,036 92,317 149,806 2,418 4,341 Rio Blanco 1,115 1,922 491 720 13 20 Elbert 853 1,375 403 565 11 17 Rio Grande 1,538 2,473 728 1,015 20 30 Fremont 8,439 16,432 3,830 6,216 100 180 Routt 7,583 12,920 3,358 4,868 86 139 Garfield 15,270 26,323 6,731 9,863 172 281 Saguache 203 327 96 134 3 4 Gilpin 655 1,116 290 420 7 12 San Juan 296 504 131 190 3 5 Grand 4,428 7,544 1,961 2,842 50 81 San Miguel 2,169 3,696 961 1,392 25 40 Gunnison 4,273 7,280 1,892 2,743 49 78 Sedgwick 656 1,057 310 434 8 13 Hinsdale 86 147 38 56 1 2 Summit 17,479 29,781 7,740 11,220 199 321 Huerfano 1,013 1,629 480 669 13 20 Teller 3,189 6,211 1,448 2,349 38 68 Jackson 227 387 101 146 3 4 Washington 534 862 253 354 7 10 Jefferson 207,084 459,202 92,567 170,698 2,464 4,911 Weld 44,949 79,537 19,840 29,571 509 846 Kiowa 199 321 94 132 3 4 Yuma 1,394 2,248 659 924 18 27 Kit Carson 1,175 1,895 556 779 15 23 COLORADO 1,574,128 3,256,520 705,653 1,219,051 18,627 35,106 Sources: McGraw-Hill Construction Research & Analytics, 2007; Urban Land Institute, Dollars & Cents of Shopping Centers / The SCORE 2006; University of Colorado-Boulder; University of Denver.
  • Appendix K: Economic Impacts of Existing Hotel Real Estate, by County, 2006 Direct Total Direct Total Earnings, w/Multiplier, Earnings, w/Multiplier, County Spending, Output, Employment w/Multiplier County Spending, Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $91,682 $190,149 $32,006 $62,435 1,489 2,395 La Plata $52,666 $84,698 $17,775 $26,881 827 1,135 Alamosa 9,585 14,585 3,219 4,748 150 201 Lake 660 1,061 223 337 10 14 Arapahoe 155,388 322,274 54,246 105,819 2,524 4,060 Larimer 69,920 118,549 22,465 36,023 1,045 1,489 Archuleta 2,725 4,383 920 1,391 43 59 Las Animas 8,701 13,240 2,922 4,310 136 183 Baca 111 169 37 55 2 2 Lincoln 1,412 2,169 487 719 23 30 Bent 730 1,121 252 371 12 16 Logan 9,967 15,312 3,439 5,074 160 214 Boulder 143,698 298,031 50,165 97,859 2,334 3,754 Mesa 43,037 71,881 14,904 23,787 693 983 Chaffee 12,858 20,679 4,340 6,563 202 277 Mineral 457 734 154 233 7 10 Cheyenne 235 361 81 119 4 5 Moffat 6,733 10,644 2,110 3,226 98 134 Clear Creek 4,318 6,945 1,457 2,204 68 93 Montezuma 15,545 24,999 5,246 7,934 244 335 Conejos 462 702 155 229 7 10 Montrose 8,030 13,412 2,781 4,438 129 183 Costilla 308 469 103 153 5 6 Morgan 2,830 4,798 909 1,458 42 60 Crowley 120 184 41 61 2 3 Otero 5,385 8,272 1,858 2,741 86 115 Custer 1,422 2,164 477 704 22 30 Ouray 1,090 1,754 368 557 17 24 Delta 2,346 3,918 812 1,297 38 54 Park 342 550 115 174 5 7 44 Denver 418,048 867,032 145,941 284,691 6,790 10,922 Phillips 175 268 60 89 3 4 Dolores 167 269 56 85 3 4 Pitkin 158,859 255,476 53,615 81,081 2,494 3,424 Douglas 41,380 85,822 14,446 28,180 672 1,081 Prowers 7,138 10,861 2,397 3,535 112 150 Eagle 395,222 635,596 133,387 201,721 6,206 8,518 Pueblo 40,518 72,929 14,145 23,861 658 972 El Paso 253,958 457,099 88,657 149,556 4,125 6,093 Rio Blanco 3,136 4,957 983 1,502 46 63 Elbert 91 140 31 46 1 2 Rio Grande 1,613 2,454 542 799 25 34 Fremont 4,803 8,645 1,677 2,829 78 115 Routt 109,932 176,793 37,102 56,110 1,726 2,369 Garfield 89,373 141,290 28,009 42,819 1,303 1,783 Saguache - - - - - - Gilpin 40,391 64,956 13,632 20,615 634 871 San Juan 676 1,087 228 345 11 15 Grand 120,933 194,484 40,815 61,724 1,899 2,607 San Miguel 88,437 142,224 29,847 45,138 1,389 1,906 Gunnison 24,768 39,831 8,359 12,641 389 534 Sedgwick 1,216 1,867 419 619 20 26 Hinsdale 1,427 2,295 482 728 22 31 Summit 236,876 380,945 79,946 120,902 3,719 5,105 Huerfano 3,823 5,817 1,284 1,893 60 80 Teller 13,423 24,159 4,686 7,905 218 322 Jackson 381 612 129 194 6 8 Washington 117 180 40 60 2 3 Jefferson 138,723 287,712 48,428 94,471 2,253 3,624 Weld 24,817 42,078 7,974 12,786 371 529 Kiowa 2,795 4,294 964 1,423 45 60 Yuma 634 974 219 323 10 14 Kit Carson 4,943 7,594 1,705 2,517 79 106 COLORADO 2,881,556 5,158,947 984,274 1,663,087 45,793 67,255 Sources: McGraw-Hill Construction Research & Analytics, 2007; PKF Hospitality Research; University of Colorado-Boulder; University of Denver.
  • Appendix L: Economic Impacts of Tenant Improvements, by County, 2006 Total Total Direct Spending, Earnings, w/Multiplier, Direct Spending, Earnings, w/Multiplier, County Output, Employment w/Multiplier County Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams 13,611 31,900 5,020 10,872 120 300 Lake $0 $0 $0 $0 - - Alamosa - - - - - - La Plata 678 1,177 233 383 6 11 Arapahoe 38,457 90,096 14,215 30,738 338 847 Larimer 23,812 46,137 8,090 14,638 193 409 Archuleta - - - - - - Las Animas - - - - - - Baca - - - - - - Lincoln - - - - - - Bent - - - - - - Logan - - - - - - Boulder 27,107 63,507 10,019 21,666 238 597 Mesa 4,527 8,705 1,784 3,115 42 87 Chaffee - - - - - - Mineral - - - - - - Cheyenne - - - - - - Moffat - - - - - - Clear Creek 264 458 91 149 2 4 Montezuma - - - - - - Conejos - - - - - - Montrose 505 971 199 347 5 10 Costilla - - - - - - Morgan - - - - - - Crowley - - - - - - Otero 226 377 85 132 2 4 Custer - - - - - - Ouray - - - - - - Delta - - - - - - Park - - - - - - 45 Denver 127,375 298,415 47,080 101,810 1,119 2,805 Phillips - - - - - - Dolores - - - - - - Pitkin - - - - - - Douglas 7,635 17,886 2,822 6,102 67 168 Prowers - - - - - - Eagle 24,227 42,065 8,350 13,691 198 380 Pueblo 12,388 25,241 4,623 8,683 110 243 Elbert - - - - - - Rio Blanco - - - - - - El Paso 23,434 47,747 8,743 16,423 208 460 Rio Grande - - - - - - Fremont - - - - - - Routt - - - - - - Garfield 1,366 2,411 472 790 11 22 Saguache - - - - - - Gilpin - - - - - - San Juan - - - - - - Grand - - - - - - San Miguel - - - - - - Gunnison - - - - - - Sedgwick - - - - - - Hinsdale - - - - - - Summit 238 413 82 134 2 4 Huerfano - - - - - - Teller 312 637 117 219 3 6 Jackson - - - - - - Washington - - - - - - Jefferson 34,219 80,169 12,647 27,350 301 754 Weld 4,476 8,671 1,521 2,751 36 77 Kiowa - - - - - - Yuma - - - - - - Kit Carson - - - - - - Total $344,855 $766,981 $126,192 $259,996 3,000 7,186 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver.
  • Appendix M: Economic Impacts of Office Tenant Improvements, by County, 2006 Total Total Direct Spending, Earnings, w/Multiplier, Direct Spending, Earnings, w/Multiplier, County Output, Employment w/Multiplier County Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $2,247 $5,265 $831 $1,796 20 49 Lake $0 $0 $0 $0 - - Alamosa - - - - - - La Plata 208 361 72 117 2 3 Arapahoe 19,553 45,807 7,228 15,629 172 431 Larimer 11,634 22,539 3,953 7,152 94 200 Archuleta - - - - - - Las Animas - - - - - - Baca - - - - - - Lincoln - - - - - - Bent - - - - - - Logan - - - - - - Boulder 14,696 34,430 5,433 11,747 129 324 Mesa 3,220 6,192 1,269 2,216 30 62 Chaffee - - - - - - Mineral - - - - - - Cheyenne - - - - - - Moffat - - - - - - Clear Creek 264 458 91 149 2 4 Montezuma - - - - - - Conejos - - - - - - Montrose 505 971 199 347 5 10 Costilla - - - - - - Morgan - - - - - - Crowley - - - - - - Otero - - - - - - Custer - - - - - - Ouray - - - - - - Delta - - - - - - Park - - - - - - Denver 9,155 21,448 3,384 7,318 80 202 Phillips - - - - - - Dolores - - - - - - Pitkin - - - - - - 46 Douglas 5,223 12,236 1,931 4,175 46 115 Prowers - - - - - - Eagle - - - - - - Pueblo 3,305 6,733 1,233 2,316 29 65 Elbert - - - - - - Rio Blanco - - - - - - El Paso 13,466 27,436 5,025 9,438 119 264 Rio Grande - - - - - - Fremont - - - - - - Routt - - - - - - Garfield 594 1,048 205 344 5 9 Saguache - - - - - - Gilpin - - - - - - San Juan - - - - - - Grand - - - - - - San Miguel - - - - - - Gunnison - - - - - - Sedgwick - - - - - - Hinsdale - - - - - - Summit 238 413 82 134 2 4 Huerfano - - - - - - Teller 312 637 117 219 3 6 Jackson - - - - - - Washington - - - - - - Jefferson 9,213 21,584 3,406 7,364 81 203 Weld 2,593 5,024 881 1,594 21 45 Kiowa - - - - - - Yuma - - - - - - Kit Carson - - - - - - Total $96,426 $212,582 $35,339 $72,056 840 1,995 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver.
  • Appendix N: Economic Impacts of Industrial Tenant Improvements, by County 2006 Total Total Direct Spending, Earnings, w/Multiplier, Direct Spending, Earnings, w/Multiplier, County Output, Employment w/Multiplier County Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $6,174 $14,479 $2,271 $4,929 54 136 Lake $0 $0 $0 $0 - - Alamosa - - - - - - La Plata 233 404 80 131 2 4 Arapahoe 599 1,405 220 478 5 13 Larimer 998 1,937 338 614 8 17 Archuleta - - - - - - Las Animas - - - - - - Baca - - - - - - Lincoln - - - - - - Bent - - - - - - Logan - - - - - - Boulder 905 2,122 333 722 8 20 Mesa - - - - - - Chaffee - - - - - - Mineral - - - - - - Cheyenne - - - - - - Moffat - - - - - - Clear Creek - - - - - - Montezuma - - - - - - Conejos - - - - - - Montrose - - - - - - Costilla - - - - - - Morgan - - - - - - Crowley - - - - - - Otero 226 377 85 132 2 4 Custer - - - - - - Ouray - - - - - - Delta - - - - - - Park - - - - - - Denver 2,937 6,886 1,080 2,344 26 65 Phillips - - - - - - 47 Dolores - - - - - - Pitkin - - - - - - Douglas - - - - - - Prowers - - - - - - Eagle 291 505 100 164 2 5 Pueblo - - - - - - Elbert - - - - - - Rio Blanco - - - - - - El Paso 1,150 2,345 427 804 10 23 Rio Grande - - - - - - Fremont - - - - - - Routt - - - - - - Garfield - - - - - - Saguache - - - - - - Gilpin - - - - - - San Juan - - - - - - Grand - - - - - - San Miguel - - - - - - Gunnison - - - - - - Sedgwick - - - - - - Hinsdale - - - - - - Summit - - - - - - Huerfano - - - - - - Teller - - - - - - Jackson - - - - - - Washington - - - - - - Jefferson 1,182 2,771 435 943 10 26 Weld - - - - - - Kiowa - - - - - - Yuma - - - - - - Kit Carson - - - - - - Total $14,693 $33,231 $5,367 $11,261 128 312 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver.
  • Appendix O: Economic Impacts of Retail Tenant Improvements, by County, 2006 Total Total Direct Spending, Earnings, w/Multiplier, Direct Spending, Earnings, w/Multiplier, County Output, Employment w/Multiplier County Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $5,189 $12,156 $1,918 $4,147 46 114 Lake $0 $0 $0 $0 - - Alamosa - - - - - - La Plata 238 413 82 134 2 4 Arapahoe 15,929 37,319 5,888 12,733 140 351 Larimer 9,957 19,290 3,383 6,121 81 171 Archuleta - - - - - - Las Animas - - - - - - Baca - - - - - - Lincoln - - - - - - Bent - - - - - - Logan - - - - - - Boulder 11,506 26,955 4,253 9,197 101 253 Mesa 1,069 2,056 421 736 10 21 Chaffee - - - - - - Mineral - - - - - - Cheyenne - - - - - - Moffat - - - - - - Clear Creek - - - - - - Montezuma - - - - - - Conejos - - - - - - Montrose - - - - - - Costilla - - - - - - Morgan - - - - - - Crowley - - - - - - Otero - - - - - - Custer - - - - - - Ouray - - - - - - Delta - - - - - - Park - - - - - - Denver 23,425 54,879 8,659 18,724 206 516 Phillips - - - - - - 48 Dolores - - - - - - Pitkin - - - - - - Douglas 1,936 4,536 716 1,548 17 43 Prowers - - - - - - Eagle - - - - - - Pueblo 3,026 6,164 1,129 2,121 27 59 Elbert - - - - - - Rio Blanco - - - - - - El Paso 7,454 15,187 2,782 5,224 66 146 Rio Grande - - - - - - Fremont - - - - - - Routt - - - - - - Garfield 772 1,363 267 447 6 12 Saguache - - - - - - Gilpin - - - - - - San Juan - - - - - - Grand - - - - - - San Miguel - - - - - - Gunnison - - - - - - Sedgwick - - - - - - Hinsdale - - - - - - Summit - - - - - - Huerfano - - - - - - Teller - - - - - - Jackson - - - - - - Washington - - - - - - Jefferson 13,298 31,155 4,916 10,630 117 293 Weld 238 460 81 146 2 4 Kiowa - - - - - - Yuma - - - - - - Kit Carson - - - - - - Total $94,036 $211,932 $34,496 $71,906 820 1,987 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver.
  • Appendix P: Economic Impacts of Hotel Tenant Improvements, by County, 2006 Total Total Direct Spending, Earnings, w/Multiplier, Direct Spending, Earnings, w/Multiplier, County Output, Employment w/Multiplier County Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $0 $0 $0 $0 - - Lake $0 $0 $0 $0 - - Alamosa - - - - - - La Plata - - - - - - Arapahoe 2,376 5,566 878 1,899 21 52 Larimer 748 1,450 254 460 6 13 Archuleta - - - - - - Las Animas - - - - - - Baca - - - - - - Lincoln - - - - - - Bent - - - - - - Logan - - - - - - Boulder - - - - - - Mesa 238 457 94 163 2 5 Chaffee - - - - - - Mineral - - - - - - Cheyenne - - - - - - Moffat - - - - - - Clear Creek - - - - - - Montezuma - - - - - - Conejos - - - - - - Montrose - - - - - - Costilla - - - - - - Morgan - - - - - - Crowley - - - - - - Otero - - - - - - Custer - - - - - - Ouray - - - - - - Delta - - - - - - Park - - - - - - Denver 84,494 197,948 31,234 67,537 742 1,861 Phillips - - - - - - 49 Dolores - - - - - - Pitkin - - - - - - Douglas - - - - - - Prowers - - - - - - Eagle 23,936 41,560 8,250 13,527 196 375 Pueblo - - - - - - Elbert - - - - - - Rio Blanco - - - - - - El Paso - - - - - - Rio Grande - - - - - - Fremont - - - - - - Routt - - - - - - Garfield - - - - - - Saguache - - - - - - Gilpin - - - - - - San Juan - - - - - - Grand - - - - - - San Miguel - - - - - - Gunnison - - - - - - Sedgwick - - - - - - Hinsdale - - - - - - Summit - - - - - - Huerfano - - - - - - Teller - - - - - - Jackson - - - - - - Washington - - - - - - Jefferson 713 1,670 263 570 6 16 Weld - - - - - - Kiowa - - - - - - Yuma - - - - - - Kit Carson - - - - - - Total $112,504 $248,651 $40,974 $84,157 974 2,321 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver.
  • Appendix Q: Economic Impacts of Multifamily Tenant Improvements, by County, 2006 Direct Spending, Total Output, Earnings, w/Multiplier, Direct Spending, Total Output, Earnings, w/Multiplier, County Employment w/Multiplier County Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $0 $0 $0 $0 - - Lake $0 $0 $0 $0 - - Alamosa - - - - - - La Plata - - - - - - Arapahoe - - - - - - Larimer 475 921 161 292 4 8 Archuleta - - - - - - Las Animas - - - - - - Baca - - - - - - Lincoln - - - - - - Bent - - - - - - Logan - - - - - - Boulder - - - - - - Mesa - - - - - - Chaffee - - - - - - Mineral - - - - - - Cheyenne - - - - - - Moffat - - - - - - Clear Creek - - - - - - Montezuma - - - - - - Conejos - - - - - - Montrose - - - - - - Costilla - - - - - - Morgan - - - - - - Crowley - - - - - - Otero - - - - - - Custer - - - - - - Ouray - - - - - - Delta - - - - - - Park - - - - - - Denver 7,365 17,254 2,722 5,887 65 162 Phillips - - - - - - Dolores - - - - - - Pitkin - - - - - - 50 Douglas 475 1,113 176 380 4 10 Prowers - - - - - - Eagle - - - - - - Pueblo 6,058 12,343 2,261 4,246 54 119 Elbert - - - - - - Rio Blanco - - - - - - El Paso 1,364 2,778 509 956 12 27 Rio Grande - - - - - - Fremont - - - - - - Routt - - - - - - Garfield - - - - - - Saguache - - - - - - Gilpin - - - - - - San Juan - - - - - - Grand - - - - - - San Miguel - - - - - - Gunnison - - - - - - Sedgwick - - - - - - Hinsdale - - - - - - Summit - - - - - - Huerfano - - - - - - Teller - - - - - - Jackson - - - - - - Washington - - - - - - Jefferson 9,813 22,990 3,627 7,844 86 216 Weld 1,645 3,187 559 1,011 13 28 Kiowa - - - - - - Yuma - - - - - - Kit Carson - - - - - - Total $27,195 $60,587 $10,016 $20,616 238 571 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver
  • Appendix R: Economic Impacts of New Construction, by County, 2006 Total Total Direct Spending, Earnings, w/Multiplier, Direct Spending, Earnings, w/Multiplier, County Output, Employment w/Multiplier County Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $393,228 $921,378 $145,239 $314,243 3,455 8,661 Lake $174 $303 $60 $98 1 3 Alamosa 1,425 2,411 561 871 13 24 La Plata 27,086 47,030 9,336 15,307 222 425 Arapahoe 350,043 820,077 129,386 279,789 3,075 7,709 Larimer 210,459 407,776 71,502 129,377 1,706 3,613 Archuleta 3,267 5,672 1,126 1,846 27 51 Las Animas - - - - - - Baca - - - - - - Lincoln 4,752 7,942 1,786 2,791 43 77 Bent - - - - - - Logan 1,956 3,270 735 1,149 18 32 Boulder 186,953 438,013 69,084 149,420 1,642 4,117 Mesa 56,719 109,104 22,315 39,015 532 1,090 Chaffee 174 303 60 98 1 3 Mineral - - - - - - Cheyenne 751 1,255 282 441 7 12 Moffat 238 419 82 137 2 4 Clear Creek - - - - - - Montezuma 1,505 2,614 518 850 12 24 Conejos - - - - - - Montrose 17,818 34,261 7,020 12,262 167 342 Costilla - - - - - - Morgan - - - - - - Crowley - - - - - - Otero 227 379 85 133 2 4 Custer - - - - - - Ouray 349 606 120 197 3 5 Delta 174 336 68 120 2 3 Park 7,721 13,406 2,661 4,364 63 121 Denver 202,805 466,955 81,993 166,184 1,777 4,436 Phillips - - - - - - 51 Dolores - - - - - - Pitkin 158,545 275,285 54,649 89,600 1,297 2,485 Douglas 182,870 428,466 67,560 146,148 1,607 4,027 Prowers - - - - - - Eagle 94,733 164,487 32,650 53,534 775 1,485 Pueblo 311,248 634,462 115,574 217,693 2,759 6,110 Elbert 174 292 65 102 2 3 Rio Blanco - - - - - - El Paso 289,490 589,857 107,986 202,860 2,566 5,684 Rio Grande 915 1,548 360 559 9 16 Fremont 5,345 10,891 1,995 3,747 47 105 Routt 55,198 95,844 19,017 31,186 452 865 Garfield 38,295 67,580 13,235 22,149 314 609 Saguache - - - - - - Gilpin 172,243 299,068 59,371 97,341 1,409 2,700 San Juan - - - - - - Grand 55,335 96,079 19,074 31,272 453 867 San Miguel 27,520 47,783 9,486 15,552 225 431 Gunnison 32,192 55,895 11,096 18,193 263 505 Sedgwick - - - - - - Hinsdale - - - - - - Summit 14,569 25,297 5,022 8,234 119 228 Huerfano - - - - - - Teller 10,628 21,654 3,966 7,449 94 209 Jackson - - - - - - Washington - - - - - - Jefferson 239,131 560,254 88,372 191,127 2,101 5,266 Weld 108,753 210,785 36,932 66,859 882 1,868 Kiowa - - - - - - Yuma 174 292 65 102 2 3 Kit Carson - - - - - - Total $3,265,183 $6,869,328 $1,190,494 $2,322,398 28,145 64,224 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver.
  • Appendix S: Economic Impacts of Office Construction, by County, 2006 Total Total Direct Spending, Earnings, w/Multiplier, Direct Spending, Earnings, w/Multiplier, County Output, Employment w/Multiplier County Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $92,026 $215,595 $34,018 $73,558 808 2,027 Lake $0 $0 $0 $0 - - Alamosa - - - - - - La Plata 11,092 19,260 3,823 6,269 91 174 Arapahoe 19,454 45,576 7,191 15,550 171 428 Larimer 42,323 81,994 14,381 26,017 343 726 Archuleta 2,970 5,156 1,024 1,678 24 47 Las Animas - - - - - - Baca - - - - - - Lincoln - - - - - - Bent - - - - - - Logan - - - - - - Boulder 14,600 34,205 5,397 11,670 128 322 Mesa 17,885 34,389 7,046 12,308 168 344 Chaffee - - - - - - Mineral - - - - - - Cheyenne 240 401 90 141 2 4 Moffat - - - - - - Clear Creek - - - - - - Montezuma - - - - - - Conejos - - - - - - Montrose - - - - - - Costilla - - - - - - Morgan - - - - - - Crowley - - - - - - Otero - - - - - - Custer - - - - - - Ouray - - - - - - Delta - - - - - - Park - - - - - - Denver 57,204 134,014 21,146 45,724 503 1,260 Phillips - - - - - - 52 Dolores - - - - - - Pitkin 7,961 13,823 2,744 4,499 65 125 Douglas 57,698 135,171 21,329 46,119 507 1,271 Prowers - - - - - - Eagle 950 1,650 328 537 8 15 Pueblo 17,058 34,755 6,366 11,956 151 335 Elbert - - - - - - Rio Blanco - - - - - - El Paso 91,176 185,768 34,027 63,904 808 1,790 Rio Grande 663 1,121 261 405 6 11 Fremont 2,376 4,841 887 1,665 21 47 Routt 2,973 5,163 1,025 1,680 24 47 Garfield 5,034 8,884 1,740 2,912 41 80 Saguache - - - - - - Gilpin - - - - - - San Juan - - - - - - Grand - - - - - - San Miguel - - - - - - Gunnison - - - - - - Sedgwick - - - - - - Hinsdale - - - - - - Summit - - - - - - Huerfano - - - - - - Teller 115 235 43 81 1 2 Jackson - - - - - - Washington - - - - - - Jefferson 11,126 26,065 4,113 8,893 98 245 Weld 10,462 20,268 3,555 6,431 85 180 Kiowa - - - - - - Yuma - - - - - - Kit Carson - - - - - - Total $465,385 $1,008,333 $170,534 $341,997 4,054 9,478 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver.
  • Appendix T: Economic Impacts of Industrial Construction, by County, 2006 Total Total Direct Spending, Earnings, w/Multiplier, Direct Spending, Earnings, w/Multiplier, County Output, Employment w/Multiplier County Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $64,629 $151,550 $23,769 $51,588 568 1,424 Lake $174 $303 $60 $98 1 3 Alamosa - - - - - - La Plata 116 202 40 66 1 2 Arapahoe 5,785 13,565 2,128 4,618 51 127 Larimer 10,845 21,056 3,674 6,669 88 187 Archuleta - - - - - - Las Animas - - - - - - Baca - - - - - - Lincoln - - - - - - Bent - - - - - - Logan 174 292 65 102 2 3 Boulder 13,187 30,924 4,850 10,526 116 291 Mesa 17,236 33,185 6,759 11,843 162 332 Chaffee 174 303 60 98 1 3 Mineral - - - - - - Cheyenne - - - - - - Moffat - - - - - - Clear Creek - - - - - - Montezuma 377 654 129 212 3 6 Conejos - - - - - - Montrose - - - - - - Costilla - - - - - - Morgan - - - - - - Crowley - - - - - - Otero 227 379 85 133 2 4 Custer - - - - - - Ouray 349 606 120 197 3 5 Delta 174 336 68 120 2 3 Park - - - - - - Denver 22,537 52,848 8,288 17,989 198 497 Phillips - - - - - - 53 Dolores - - - - - - Pitkin - - - - - - Douglas 21,013 49,275 7,728 16,773 185 463 Prowers - - - - - - Eagle 1,704 2,959 584 960 14 27 Pueblo 291,916 595,075 108,359 204,143 2,587 5,731 Elbert 174 292 65 102 2 3 Rio Blanco - - - - - - El Paso 26,640 54,306 9,889 18,630 236 523 Rio Grande 252 427 99 154 2 4 Fremont - - - - - - Routt 4,744 8,239 1,626 2,673 39 74 Garfield - - - - - - Saguache - - - - - - Gilpin - - - - - - San Juan - - - - - - Grand - - - - - - San Miguel - - - - - - Gunnison - - - - - - Sedgwick - - - - - - Hinsdale - - - - - - Summit - - - - - - Huerfano - - - - - - Teller - - - - - - Jackson - - - - - - Washington - - - - - - Jefferson 13,384 31,385 4,922 10,683 118 295 Weld 21,981 42,677 7,447 13,517 179 378 Kiowa - - - - - - Yuma 174 292 65 102 2 3 Kit Carson - - - - - - Total $517,969 $1,091,131 $190,880 $371,999 4,560 10,386 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver.
  • Appendix U: Economic Impacts of Retail Construction, by County, 2006 Total Total Direct Spending, Earnings, w/Multiplier, Direct Spending, Earnings, w/Multiplier, County Output, Employment w/Multiplier County Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $142,188 $333,111 $52,561 $113,653 1,249 3,131 Lake $0 $0 $0 $0 - - Alamosa 1,425 2,411 561 871 13 24 La Plata 4,806 8,345 1,657 2,716 39 75 Arapahoe 65,702 153,923 24,287 52,516 577 1,447 Larimer 33,492 64,886 11,380 20,589 271 575 Archuleta 297 516 102 168 2 5 Las Animas - - - - - - Baca - - - - - - Lincoln - - - - - - Bent - - - - - - Logan 1,782 2,978 670 1,047 16 29 Boulder 36,776 86,156 13,594 29,395 323 810 Mesa 12,511 24,056 4,929 8,610 117 240 Chaffee - - - - - - Mineral - - - - - - Cheyenne 511 854 192 300 5 8 Moffat 238 419 82 137 2 4 Clear Creek - - - - - - Montezuma 1,128 1,959 389 638 9 18 Conejos - - - - - - Montrose 14,255 27,409 5,616 9,810 134 274 Costilla - - - - - - Morgan - - - - - - Crowley - - - - - - Otero - - - - - - Custer - - - - - - Ouray - - - - - - Delta - - - - - - Park 7,721 13,406 2,661 4,364 63 121 Denver 27,441 64,288 10,144 21,934 241 604 Phillips - - - - - - 54 Dolores - - - - - - Pitkin 7,530 13,074 2,596 4,255 62 118 Douglas 23,740 55,616 8,776 18,976 209 523 Prowers - - - - - - Eagle 9,242 16,047 3,186 5,223 76 145 Pueblo 2,274 4,632 849 1,594 20 45 Elbert - - - - - - Rio Blanco - - - - - - El Paso 60,171 122,597 22,456 42,173 533 1,181 Rio Grande - - - - - - Fremont - - - - - - Routt 3,104 5,389 1,070 1,754 25 49 Garfield 475 839 164 275 4 8 Saguache - - - - - - Gilpin - - - - - - San Juan - - - - - - Grand - - - - - - San Miguel - - - - - - Gunnison 3,326 5,775 1,146 1,880 27 52 Sedgwick - - - - - - Hinsdale - - - - - - Summit 2,691 4,672 927 1,521 22 42 Huerfano - - - - - - Teller 8,137 16,579 3,037 5,703 72 160 Jackson - - - - - - Washington - - - - - - Jefferson 55,330 129,625 20,453 44,226 486 1,219 Weld 10,115 19,596 3,437 6,218 82 174 Kiowa - - - - - - Yuma - - - - - - Kit Carson - - - - - - Total $536,406 $1,179,158 $196,923 $400,545 4,681 11,080 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver.
  • Appendix V: Economic Impacts of Hotel Construction, by County, 2006 Total Total Direct Spending, Earnings, w/Multiplier, Direct Spending, Earnings, w/Multiplier, County Output, Employment w/Multiplier County Output, Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $0 $0 $0 $0 - - Lake $0 $0 $0 $0 - - Alamosa - - - - - - La Plata - - - - - - Arapahoe 10,097 23,655 3,732 8,071 89 222 Larimer 16,651 32,258 5,658 10,236 135 286 Archuleta - - - - - - Las Animas - - - - - - Baca - - - - - - Lincoln 4,752 7,942 1,786 2,791 43 77 Bent - - - - - - Logan - - - - - - Boulder 2,079 4,870 768 1,662 18 46 Mesa 4,222 8,118 1,663 2,905 40 81 Chaffee - - - - - - Mineral - - - - - - Cheyenne - - - - - - Moffat - - - - - - Clear Creek - - - - - - Montezuma - - - - - - Conejos - - - - - - Montrose - - - - - - Costilla - - - - - - Morgan - - - - - - Crowley - - - - - - Otero - - - - - - Custer - - - - - - Ouray - - - - - - Delta - - - - - - Park - - - - - - Denver 15,442 36,178 5,708 12,343 136 340 Phillips - - - - - - 55 Dolores - - - - - - Pitkin 35,339 61,360 12,181 19,972 289 554 Douglas - - - - - - Prowers - - - - - - Eagle - - - - - - Pueblo - - - - - - Elbert - - - - - - Rio Blanco - - - - - - El Paso 25,175 51,293 9,395 17,645 223 494 Rio Grande - - - - - - Fremont 2,970 6,051 1,108 2,081 26 58 Routt - - - - - - Garfield - - - - - - Saguache - - - - - - Gilpin 172,243 299,068 59,371 97,341 1,409 2,700 San Juan - - - - - - Grand - - - - - - San Miguel 20,986 36,439 7,234 11,860 172 329 Gunnison - - - - - - Sedgwick - - - - - - Hinsdale - - - - - - Summit - - - - - - Huerfano - - - - - - Teller - - - - - - Jackson - - - - - - Washington - - - - - - Jefferson - - - - - - Weld 3,564 6,904 1,211 2,191 29 61 Kiowa - - - - - - Yuma - - - - - - Kit Carson - - - - - - Total $313,518 $574,134 $109,816 $189,096 2,608 5,249 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver.
  • Appendix W: Economic Impacts of Multifamily Construction, by County, 2006 Direct Spending, Total Output, Earnings, w/Multiplier, Direct Spending, Total Output, Earnings, w/Multiplier, County Employment w/Multiplier County Employment w/Multiplier 000s 000s 000s 000s 000s 000s 000s 000s Adams $94,385 $221,121 $34,890 $75,444 829 2,079 Lake $0 $0 $0 $0 - - Alamosa - - - - - - La Plata 11,071 19,223 3,816 6,257 91 174 Arapahoe 249,006 583,359 92,047 199,034 2,188 5,484 Larimer 107,148 207,582 36,408 65,867 869 1,839 Archuleta - - - - - - Las Animas - - - - - - Baca - - - - - - Lincoln - - - - - - Bent - - - - - - Logan - - - - - - Boulder 120,311 281,858 44,474 96,166 1,057 2,650 Mesa 4,866 9,356 1,917 3,348 46 94 Chaffee - - - - - - Mineral - - - - - - Cheyenne - - - - - - Moffat - - - - - - Clear Creek - - - - - - Montezuma - - - - - - Conejos - - - - - - Montrose 3,564 6,852 1,404 2,452 33 68 Costilla - - - - - - Morgan - - - - - - Crowley - - - - - - Otero - - - - - - Custer - - - - - - Ouray - - - - - - Delta - - - - - - Park - - - - - - Denver 80,181 179,628 36,707 68,194 700 1,735 Phillips - - - - - - Dolores - - - - - - Pitkin 107,715 187,027 37,128 60,873 881 1,689 56 Douglas 80,419 188,403 29,728 64,281 706 1,771 Prowers - - - - - - Eagle 82,837 143,831 28,553 46,814 678 1,299 Pueblo - - - - - - Elbert - - - - - - Rio Blanco - - - - - - El Paso 86,329 175,893 32,218 60,507 765 1,695 Rio Grande - - - - - - Fremont - - - - - - Routt 44,377 77,052 15,296 25,079 363 696 Garfield 32,785 57,857 11,331 18,962 269 522 Saguache - - - - - - Gilpin - - - - - - San Juan - - - - - - Grand 55,335 96,079 19,074 31,272 453 867 San Miguel 6,533 11,344 2,252 3,692 53 102 Gunnison 28,865 50,120 9,950 16,313 236 453 Sedgwick - - - - - - Hinsdale - - - - - - Summit 11,879 20,625 4,095 6,713 97 186 Huerfano - - - - - - Teller 2,376 4,841 887 1,665 21 47 Jackson - - - - - - Washington - - - - - - Jefferson 159,291 373,179 58,884 127,324 1,399 3,508 Weld 62,632 121,340 21,282 38,502 508 1,075 Kiowa - - - - - - Yuma - - - - - - Kit Carson - - - - - - Total $1,431,905 $3,016,571 $522,341 $1,018,760 12,242 28,031 Sources: McGraw-Hill Construction Research & Analytics, 2007; University of Colorado-Boulder; University of Denver
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  • NAIOP Colorado Chapter 1720 S. Bellaire Street, Suite 110 Denver, CO 80222-4303 Ph: (303) 782-0155 Fax: (303) 820-3844 Web: www.naiop-colorado.org