Boulder Market Profile: January 2019

MARKET PROFILE BOULDER, COLORADO JANUARY 2019

TABLE OF CONTENTS DEMOGRAPHICS • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 7 POPULATION AND GROWTH ............................................ 7 AGE .................................................................................... 8 EDUCATION ....................................................................... 9 ETHNICITY ........................................................................... 9 DEMOGRAPHIC SNAPSHOT .............................................. 10

INDUSTRIES & EMPLOYMENT • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 13 LEADING SECTORS ............................................................ 13 MAJOR EMPLOYERS .......................................................... 13 KEY INDUSTRY CLUSTERS .................................................... 14 PRIMARY EMPLOYERS ........................................................ 14 EMPLOYMENT AND GROWTH ...........................................15 TOTAL EMPLOYMENT BY SECTOR ......................................16 EMPLOYER SIZE .....................................................................

17 EMPLOYMENT BY OCCUPATION ...................................... 18 AVERAGE WAGES BY INDUSTRY AND OCCUPATION ... 18 UNEMPLOYMENT RATE ...................................................... 21

REAL ESTATE • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 23 COMMERCIAL REAL ESTATE ..............................................23 VACANCY RATES ............................................................... 23 RESIDENTIAL REAL ESTATE .................................................. 24 COST OF LIVING .................................................................25

LOCAL ECONOMY • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 27 INCOME ..............................................................................27 COMMUTING PATTERNS ....................................................28 GROSS DOMESTIC PRODUCT ........................................... 29 VENTURE CAPITAL INVESTMENT ........................................ 30 TOURISM ............................................................................. 31 RETAIL SALES .......................................................................32

ABOUT THE BOULDER ECONOMIC COUNCIL • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 35

DEMOGRAPHICS

Home to a world-class research university, major government research facilities, visionary entrepreneurs, and one of the nation’s most highly educated populations, Boulder is widely recognized as a center of innovation. Nestled at the base of the Rocky Mountains, the city is surrounded by the scenic beauty and recreational opportunities afforded by over 45,000 acres of open space and 151 miles of biking and hiking trails. Boulder offers an impressive choice of art, cultural, dining, entertainment and shopping options, and has excellent schools, high-quality health care, and sustainable environmental policies.

Boulder has a vibrant economy representing a diverse array of industries. Those that impart a particularly broad footprint on the city’s economy include aerospace, bioscience, natural and organic products, outdoor recreation, software, and tourism.

Perhaps the best known attribute of Boulder’s economy is its dynamic entrepreneurial ecosystem.

The city regularly earns the highest comparative rankings from organizations such as the Brookings Institution and the Ewing and Marion Kauffman Foundation and from media publishers like Entrepreneur, Fortune, Forbes and Inc.

LOCAL ECONOMY

While small businesses continue to represent the majority of employers in Boulder, several major corporations diversify employment opportunities and fuel economic growth, including AstraZeneca; Ball Aerospace & Technologies Corp.; Celestial Seasonings; CordenPharma; Qualcomm; Medtronic; Google; Lockheed Martin; Emerson, Inc.; IHS Markit; and Zayo Group, among many others. The city’s world-class research institutions are another key economic driver, including the University of Colorado Boulder and more than a dozen federal research laboratories. The University Corporation for Atmospheric Research (UCAR), the National Oceanic and Atmospheric Administration (NOAA), and the National Institute of Standards and Technology (NIST) are among the federal research laboratories in the city.

REAL ESTATE

The City of Boulder is the largest municipality in Boulder County, part of the seven-county Denver metro area, and the only county in the Boulder Metropolitan Statistical Area MSA (MSA). Only 30 minutes from downtown Denver and 45 minutes from one of the nation’s largest international airports, Boulder offers the advantages of a small city with big-city convenience and amenities. Its location in the Mountain Time Zone provides same-day telephone access to major markets throughout the world.

INDUSTRIES & EMPLOYMENT

BOULDER COLORADO : A MARKET PROFILE

Boulder Economic Council • 2018 Market Profile

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DEMOGRAPHICS DEMOGRAPHICS

POPULATION AND GROWTH In 2018, the city’s total population was approximately 108,507, reflecting a -.18% change from 2017. These population numbers include CU Boulder students, (both undergraduate and graduate students) who, as a whole, make up approximately 30.8% of the City of Boulder’s population. This is reflected in the city’s demographic characteristics.

The City of Boulder’s population has grown at a slower pace than the state of Colorado’s over recent decades. The city experienced 0.3% growth in the 2000s and 1.3% from 2010–2018. According to the 2017 Boulder Community Profile, the city’s population is projected to increase to approximately 123,000 by 2040.

POPULATION BY AREA Area

August 2010

August 2017

Change

% Change 2010 - 2017

Boulder County Total

295,605

322,854

27,249

9.2%

Boulder

97,928

106,974

9,046

9.2%

Erie (Part)

8,409

10,530

2,121

25.2%

Longmont (Part)

86,409

94,067

7,658

8.9%

Louisville

18,412

21,154

2,742

14.9%

Lyons

2,038

2,053

15

0.7%

Superior (Part)

12,501

13,046

545

4.4%

Unincorp. Area

43,484

44,494

1,010

2.3%

Source: Colorado State Demography Office

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DEMOGRAPHICS

DEMOGRAPHIC CHARACTERISTICS The following demographic characteristics of City of Boulder residents were obtained from the U.S. Census Bureau American Community Survey (ACS) released in September 2018. This survey includes population in group quarters, such as college dormitories, sororities and fraternities, correctional facilities, skilled nursing facilities and group home shelters.

AGE The 2017 median age of City of Boulder residents was 27.2. This compares to a median of 36.5 for Boulder County, 36.8 for Colorado, and 38.1 years for the nation. An estimated 30.9% of the adult population in Boulder is in the 18–24 age category. This is more than three times the percentage for the state and national population (9.3% and 9.5%, respectively), highlighting the effect of the university on city demographics.

EDUCATION The Boulder MSA has the highest concentration of educational attainment of any MSA in the U.S. Nearly all city residents age 25 or older have a high school diploma or higher (97.5%). Over three-quarters of the population (78.2%) have earned a bachelor’s or advanced degree compared to 32% for the nation, 41.2% for the state, and 63.2% for Boulder County.

Boulder Economic Council • 2018 Market Profile

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DEMOGRAPHICS

ETHNICITY Census data report that 87.6% of Boulder’s population is White, 5.1% is Asian, 1.3% is Black or African American, 0.1% is American Indian or Alaska Native, and 1.6% is other races. Approximately 10.1% of the population is of Hispanic or Latino origin (of any race). The vast majority the city’s population (89.3%) is U.S. born, slightly lower than the Boulder County and Colorado averages but higher than the nation as a whole. The remaining 10.7% of the population is foreign born.

BOULDER COUNTY POPULATION BY ETHNICITY Race*

City of Boulder

Boulder County

Colorado

U.S.

White

87.6%

88.8%

84.2%

72.3%

Black or African American

1.3%

1.0%

4.1%

12.7%

American Indian or Alaska Native

0.1%

0.4%

1.0%

0.8%

Asian

5.1%

4.6%

3.2%

5.6%

Other

1.6%

2.4%

450.0%

5.6%

Hispanic or Latino (of any race)

10.1%

13.9%

21.5%

18.1%

*Race alone or in combination with one or more other races.

US Census, 2017 American Community Survey.

BOULDER COUNTY POPULATION BY BIRTHPLACE Place of Birth

City of Boulder

Boulder County

Colorado

U.S.

Born in United States*

89.3%

89.5%

90.2%

90.2%

Foreign born

10.7%

10.5%

9.8%

13.7%

*includes Puerto Rico, US Island areas or born abroad to American parent(s).

US Census, 2017 American Community Survey.

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DEMOGRAPHICS

DEMOGRAPHIC SNAPSHOT The table below includes select demographic data from the U.S. Census Bureau’s 2017 American Community Survey for the City of Boulder, Boulder County (i.e., Boulder MSA), Colorado, and the United States. More detailed information is available on the United States Census Bureau website at https://www.census.gov/ programs-surveys/acs/.

POPULATION CHARACTERISTICS

CITY OF BOULDER

BOULDER COUNTY

COLORADO

U.S.

Total Population

107,128

322,514

5,607,154

325,719,178

Number of Households

42,177

128,497

2,139,497

120,062,818

Average Household Size

2.27

2.42

2.57

2.65

Average Family Size

2.83

2.92

2.57

2.65

% Family Households (families)

41.6%

59.2%

63.9%

65.5%

% Households with children under 18

19.9%

26.6%

27.5%

27.4%

Male

51.3%

50.3%

50.3%

49.2%

Female

48.7%

49.7%

49.7%

50.8%

AGE Median age

27.2

36.5

36.8

38.1

Under 5 years old

3.4%

4.6%

5.9%

6.1%

18 years or older

85.5%

80.5%

77.5%

77.4%

65 years or older

10.2%

13.7%

13.8%

15.6%

EDUCATION

(Population 25 or older ) High school graduate or higher

97.5%

95.5%

91.6%

88.0%

Bachelor’s degree or higher

78.2%

63.2%

41.2%

32.0%

Graduate or professional degree

38.1%

28.0%

15.2%

12.3%

% of population in workforce (16 or older)

65.6%

69.1%

68.2%

63.2%

Civilian labor force (16 or older)

62,951

188,042

3,088,303

168,845,633

INCOME Median household income

$66,524

$80,834

$69,117

$60,336

Median family income

$115,513

$108,380

$84,918

$73,891

Median non-family income

$43,069

$47,308

$44,139

$35,980

Per capita income

$42,778

$45,752

$36,345

$32,397

Boulder Economic Council • 2018 Market Profile

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Boulder Economic Council • 2018 Market Profile

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KEY INDUSTRIES AND EMPLOYMENT Boulder’s vibrant economy is supported by the presence of the university, major federally funded research facilities, and a large number of businesses in growing industries.

LEADING SECTORS

Professional, scientific, and technical services Manufacturing Information Management of companies and enterprises Arts, entertainment, and recreation Accommodation and food services

INDUSTRIES & EMPLOYMENT

• • • • • •

MAJOR EMPLOYERS

The City of Boulder has approximately 7,000 employers with five or more employees. The city’s 10 largest employers (listed in alphabetical order) are: • • • • •

Ball Aerospace & Technologies Boulder Community Health Boulder County Boulder Valley School District City of Boulder

• • • • •

Medtronic IBM Micro Motion UCAR/NCAR University of Colorado Boulder

Other major employers include: • • • • • • • •

Amazon Apple Array BioPharma Boulder Brands Battelle Ecology CA Technologies Carbon Black CordenPharma

• • • • • • • •

Crispin Porter + Bogusky Google Hain Celestial Group Lockheed Martin LogRhythm IHS Markit NetApp NIST

• • • • • • •

Northrop Grumman Qualcomm Ricoh Production Print Solutions Spectra Logic Trimble Twitter Zayo Group LLC

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KEY INDUSTRY CLUSTERS The key industry clusters that employ the largest employment concentration in Boulder County MSA include: Aerospace, Bioscience, Cleantech, Information Technology – Software, Natural Products, and Outdoor Recreation.

Examples of Boulder-based firms that are included in some of these clusters are: Ball Aerospace & Technologies Corp. and Lockheed Martin (Aerospace), IBM Corp and Google (IT-Software), Medtronic and AstraZeneca (Biosciences), juwi Solar and Siemens Power Generation (Cleantech), Celestial Seasonings and Boulder Organic Foods (Natural Products), and La Sportiva and Polar Bottle (Outdoor Recreation).

INDUSTRIES & EMPLOYMENT

A cluster refers to a geographical agglomeration of industries or companies serving a particular field. The Metro Denver Economic Development Corporation profiled several industry clusters in 2017 for the Denver Metro region, examining the identified clusters in the region using the organization’s definitions of clusters for the purposes of regional comparison. Other key industry clusters include Research, Tourism, Beverages and Creative Services.

INDUSTRY CLUSTERS: BOULDER MSA INDUSTRY CLUSTER

NUMBER OF BUSINESSES

TOTAL EMPLOYMENT

LOCATION QUOTIENT

Aerospace

44

5,682

13

Biosciences

166

5,089

4

Cleantech

290

4,551

4

IT-Software

920

11,614

3

A location quotient is a useful tool for analyzing an industry’s clustering in a given geographical area. Literally, this is an industry’s relative concentration in one area compared to the same industry in another area. For the purpose of looking at industry clusters and employment in the Boulder MSA, the relative concentration is calculated in comparison to the nation. A location quotient of 1.0 indicates the study area has the same concentration of industry employment as the nation. A location quotient of >1.0 indicates the study area has a greater concentration of industry employment compared to the nation, and a location quotient of <1.0 indicates the area has a smaller industry concentration than the nation.

BOULDER PRIMARY DATA: FIRMS & EMPLOYEES Primary employers are characterized as companies that export a significant portion of the goods and services they produce, the revenues from those exports support the local economy. Primary employers have two important impacts on local economic activities: First, primary employers have a direct impact on the local community by providing jobs for area residents. Second, the income generated by those direct jobs supports a variety of goods and services providers. This second effect is often referred to as the indirect, or multiplier effect. Primary employers, are in essence, companies that serve customers outside the local area and could thus locate nearly anywhere. Other characteristics of these industries may include highly skilled labor and high wages. Segments of these industries work together in related fields, forming industry clusters like aerospace, information technology, natural products, bioscience and others.

In the City of Boulder, a primary employer is defined by ordinance as “a business or organization of any number of employees that generates more than 50% of its revenues from activities outside of Boulder County, and shall include, but is not limited to those facilities of such business and organization devoted to the manufacturing, research and development, data processing, telecommunications and publishing, but shall not include hotels, motels, retailers or food service facilities.”

Boulder Economic Council • 2018 Market Profile

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EMPLOYMENT AND GROWTH The City of Boulder is an important employment center for Boulder County and the entire metro Denver region, representing approximately 52% of the countyâ&#x20AC;&#x2122;s total employment (excluding self-employed). Approximately 93,000 jobs are based in the city.

The Colorado Department of Labor and Employment estimates for August 2018 indicate jobs in Boulder County totaled 193,600. Year-over-year job growth has progressed uninterrupted since the end of the recession. In September 2018, employment increased 1.7% year-over-year, increasing by 3,200 jobs. Employment growth in the city has followed a pattern similar to that of the county.

INDUSTRIES & EMPLOYMENT Additionally, Boulder County has a higher concentration of proprietors than the state and the nation. According to data from the Bureau of Economic Analysis, 27.8% of Boulder County employment is proprietor employment compared to 25.6% for the state and 22.6% for the nation.

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TOTAL EMPLOYMENT BY SECTOR Excluding self-employed individuals, the largest percentage (16.6%) of workers in the City of Boulder remains those who are employed by government entities, including the University of Colorado Boulder, Boulder County, the City of Boulder, Boulder Valley School District, and federal research laboratories. The Professional, Scientific and Technical Services industry represents 16.3% of employment.

EMPLOYERS AND EMPLOYMENT BY SECTOR IN BOULDER, COLORADO Firms

Employees

INDUSTRIES & EMPLOYMENT

Government (includes public universities and schools)

22

0.3%

16,509

17.7%

Professional, Scientific and Technical Services

2,054

30.0%

16,400

17.6%

Manufacturing

243.75

3.6%

9,704

10.4%

Accommodation and Food Services

401.25

5.9%

9,250

9.9%

Health Care and Social Assistance

687.25

10.0%

9,288

10.0%

Retail Trade

532.25

7.8%

7,996

8.6%

Information

268

3.9%

5,501

5.9%

Finance and Insurance

365.25

5.3%

2,353

2.5%

Administrative and Support Services

292.25

4.3%

2,232

2.4%

Wholesale Trade

401

5.9%

3,416

3.7%

Other Services

571

8.0%

2,935

3.1%

Arts, Entertainment and Recreation

148.5

2.2%

1,644

1.8%

Construction

202

2.9%

1,416

1.5%

Educational Services

164

2.4%

1,617

1.7%

Real Estate and Rental and Leasing

354.75

5.2%

1,264

1.4%

Transportation and Warehousing

31

0.5%

678

0.7%

Management of Companies and Enterprises

95

1.4%

992

1.1%

Other

24.25

0.4%

127

0.1%

Total

6,852

100.0%

93,324

100.0%

Source: Colorado Department of Labor and Employment (QCEW 2017), Business Research Division, University of Colorado

Boulder has high concentrations of workers in two high-tech sectors: Information (over 3 times the national average) and Professional, Scientific and Technical Services (2.8 times the average).

Boulder Economic Council â&#x20AC;˘ 2018 Market Profile

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EMPLOYER SIZE (PRIVATE) Most of the estimated 7,000 private employers in the City of Boulder are small businesses; approximately 96% have fewer than 50 employees. It is important to note, however, that employers with 100 or more employees (1.6% of total) employ 34.9% of the workers.

INDUSTRIES & EMPLOYMENT The distribution of employers in Boulder County resembles the distribution in the City of Boulder, though Boulder County tends to have a slightly greater concentration of small businesses.

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EMPLOYMENT BY OCCUPATION While the largest percentage of employees in the Boulder MSA are employed in Office and Administrative Support (12.8%), Food Services (10.2%), and Sales (10.1%) occupations, the area has a very high concentration of employment in science, computer, and engineering occupations, including: LIFE, PHYSICAL AND SOCIAL SCIENCE OCCUPATIONS (4.3 TIMES NATIONAL AVERAGE) • Physicists (39.2 times national average) • Biochemists and biophysicists (7.9 times national average) • Chemists (3.2 times national average) • Environmental scientists and specialists, including health (9.8 times national average)

INDUSTRIES & EMPLOYMENT

COMPUTER AND MATHEMATICAL OCCUPATIONS (2.6 TIMES THE NATIONAL AVERAGE) • Software developers, applications (4.7 times national average) • Computer user support specialists (2.4 times national average) • Software developers, systems software (3.4 times national average) ARCHITECTURE AND ENGINEERING OCCUPATIONS (2.6 TIMES THE NATIONAL AVERAGE) • Aerospace engineering and operations technicians (10.2 times national average) • Architects, except landscape and naval (3.2 times national average) • Computer hardware engineers (11.2 times national average) • Cartographers and photogrammetrists (5.6 times national average)

EMPLOYMENT BY OCCUPATION: BOULDER MSA All Occupations (000000)

178,460

100.0%

1.00

Office and Administrative Support Occupations (430000)

22,880

12.8%

0.83

Food Preparation and Serving Related Occupations (350000)

18,170

10.2%

1.10

Sales and Related Occupations (410000)

18,100

10.1%

1.00

Computer and Mathematical Occupations (150000)

13,740

7.7%

2.58

Business and Financial Operations Occupations (130000)

13,530

7.6%

1.45

Education, Training, and Library Occupations (250000)

12,170

6.8%

1.11

Management Occupations (110000)

9,520

5.3%

1.04

Healthcare Practitioners and Technical Occupations (290000)

9,480

5.3%

0.89

Production Occupations (510000)

8,360

4.7%

0.74

Architecture and Engineering Occupations (170000)

8,180

4.6%

2.60

Transportation and Material Moving Occupations (530000)

6,290

3.5%

0.50

Life, Physical, and Social Science Occupations (190000)

6,170

3.5%

4.29

Personal Care and Service Occupations (390000)

5,360

3.0%

0.83

Installation, Maintenance, and Repair Occupations (490000)

4,550

2.5%

0.66

Construction and Extraction Occupations (470000)

4,390

2.5%

0.61

Building and Grounds Cleaning and Maintenance Occupations (370000)

4,130

2.3%

0.75

Healthcare Support Occupations (310000)

3,670

2.1%

0.71

Arts, Design, Entertainment, Sports, and Media Occupations (270000)

3,570

2.0%

1.48

Protective Service Occupations (330000)

2,250

1.3%

0.53

Community and Social Service Occupations (210000)

2,240

1.3%

0.85

Legal Occupations (230000)

1,310

0.7%

0.95

390

0.2%

0.66

Farming, Fishing, and Forestry Occupations (450000)

Source: Bureau of Labor Statistics, Occupational Employment Statistics. LQ (Location Quotient) is an indicator of concentration of employment in select industries based on comparison of local and national percentages.

Boulder Economic Council • 2018 Market Profile

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AVERAGE WAGES BY INDUSTRY AND OCCUPATION According to Colorado Department of Labor and Employment data, the average annual wages for employees in the City of Boulder (excluding self-employed and contract labor) was $64,811 in 2017 compared to an average of $65,841 for Boulder County and $57,293 for Colorado.

INDUSTRIES & EMPLOYMENT

Average wages (including both full- and part-time workers) in Boulder vary widely by industry, ranging from a low of $21,500 for the Accommodation and Food Services industry to a high of $124,900 for the Information industry.

Industries that pay higher than average wages include: • Finance and Insurance • Information • Management of Companies and Enterprises • Manufacturing • Professional, Scientific, and Technical Services

AVERAGE ANNUAL WAGES BY INDUSTRY: CITY OF BOULDER, BOULDER COUNTY AND COLORADO (INCLUDING FULL-TIME, PART-TIME, AND SEASONAL WORKERS)

City of Boulder Boulder County Average Wage Average Wage

Colorado Average Wage

Management of Companies and Enterprises

$107,223

$107,329

$148,792

Information

$124,881

$124,818

$100,781

Finance and Insurance

$112,493

$112,467

$92,579

Professional, Scientific, and Tech Services

$107,525

$107,523

$93,588

Manufacturing

$79,694

$79,752

$69,446

Wholesale Trade

$93,304

$93,191

$83,003

Government (includes public universities and schools)

$59,558

$59,555

$54,894

Construction

$54,767

$54,759

$59,444

Real Estate and Rental and Leasing

$56,949

$57,147

$57,232

Health Care and Social Assistance

$51,096

$50,812

$49,771

Transportation and Warehousing

$42,119

$42,130

$55,874

Other Services

$39,076

$39,714

$39,558

Administrative and Waste Mgmt Services

$43,780

$43,895

$41,064

Educational Services

$36,244

$36,268

$40,324

Retail Trade

$33,536

$33,553

$31,568

Arts, Entertainment, and Recreation

$27,199

$27,206

$36,117

Accommodation and Food Services

$21,455

$21,446

$22,137

Mining (includes oil and gas extraction)

NA

$67,469

$116,692

Utilities

NA

$108,806

$99,728

Agriculture, Forestry, Fishing and Hunting

NA

$37,389

$36,458

$64,811

$65,841

$57,293

Total Industries

Source: Colorado Department of Labor and Employment (QCEW 2017), Business Research Division, University of Colorado.

Notes: Agricultural, Forestry, Fishing and Hunting, Mining, and Utilities industries data not reported for the city of Boulder due to small population size. Self-employed and contract labor excluded.

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Data from the Bureau of Labor Statistics for the Boulder MSA (Boulder County) indicate the median annual wage for all occupations is $48,050 compared to $40,880 for Colorado and $37,690 for the United States.

Management occupations earn the highest annual average.

MEDIAN ANNUAL WAGE BY OCCUPATION

INDUSTRIES & EMPLOYMENT

Occupation (SOC code)

Boulder MSA

Colorado

U.S.

All Occupations (000000)

$48,050

$40,880

$37,690

Management Occupations (110000)

$127,490

$113,520

$102,590

Architecture and Engineering Occupations (170000)

$92,150

$81,460

$79,180

Computer and Mathematical Occupations (150000)

$92,440

$92,520

$84,560

Healthcare Practitioners and Technical Occupations (290000)

$73,910

$70,060

$64,770

Life, Physical, and Social Science Occupations (190000)

$76,200

$66,680

$64,510

Business and Financial Operations Occupations (130000)

$72,190

$$69,920

$67,710

Education, Training, and Library Occupations (250000)

$54,740

$46,730

$48,740

Arts, Design, Entertainment, Sports, and Media Occupations (270000)

$50,330

$44,500

$48,230

Protective Service Occupations (330000)

$55,420

$41,530

$39,550

Sales and Related Occupations (410000)

$36,270

$30,800

$27,020

Community and Social Service Occupations (210000)

$48,510

$$46,560

$43,840

Installation, Maintenance, and Repair Occupations (490000)

$47,680

$47,250

$44,520

Construction and Extraction Occupations (470000)

$46,180

$44,950

$44,730

Office and Administrative Support Occupations (430000)

$38,070

$36,690

$34,740

Production Occupations (510000)

$35,710

$35,030

$33,990

Transportation and Material Moving Occupations (530000)

$30,620

$34,150

$31,600

Healthcare Support Occupations (310000)

$34,440

$32,320

$28,710

Personal Care and Service Occupations (390000)

$30,130

$24,350

$23,610

Building and Grounds Cleaning and Maintenance Occupations (370000)

$30,080

$27,300

$25,620

Farming, Fishing, and Forestry Occupations (450000)

$28,800

$26,450

$24,390

Food Preparation and Serving Related Occupations (350000)

$24,200

$21,940

$21,910

Legal Occupations (230000)

N/A

$83,710

$80,080

Bureau of Labor Statistics, Occupational Employment Statistics, May 2017.

UNEMPLOYMENT RATE Through October 2018 year-to-date, the unemployment rate in Boulder was higher than it was in 2017 for the same period, the first increase since the recession as the labor force increased. The local jobless rate peaked at 7.8% in June 2009. The annual unemployment rate was 5.5% in 2013, 4.1% in 2014, 3.2% in 2015, 2.7% in 2016, 2.4% in 2017, and 2.8% for 2018 year-to-date through October (not seasonally adjusted).

INDUSTRIES & EMPLOYMENT

Boulderâ&#x20AC;&#x2122;s unemployment rate has remained consistently below state and national rates.

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Boulder Economic Council â&#x20AC;˘ 2018 Market Profile

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REAL ESTATE COMMERCIAL REAL ESTATE In Q3 2018, the Boulder office market posted negative absorption, no change in vacancy, stable rental rates and an increase in sales in comparison to Q4 2017. Q3 reported 722,860 square feet of vacant office space; 259,909 square feet of vacant warehouse space; 199,764 square feet of vacant flex space and 169,373 square feet of vacant retail space.

Office Vacancy Rate Warehouse Vacancy Rate

R&D Flex Vacancy Rate

Retail Vacancy Rate

Q2 17

11.3

3.8

11.4

6.1

Q3 17

11.6

5.7

11.7

7.0

Q4 17

11.5

5.6

12.6

6.9

Q1 18

11.5

5.8

5.0

3.5

Q2 18

10.4

4.1

13.1

7.0

Q3 18

10.1

4.3

13.7

3.6

Source: Newmark Grubb Knight Frank

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REAL ESTATE

Quarter

RESIDENTIAL REAL ESTATE Agencies continue to report higher than average home values for the City of Boulder, with the median home price at $849,999 to date in 2018. This compares to $530,100 for the county and $222,800 for the nation. The cityâ&#x20AC;&#x2122;s tranquil location at the base of the Rocky Mountains, along with the presence of the university and research facilities, contributes to this large differential.

The median sales prices for single-family homes sold in the Boulder area in 2018 ranged from $437,000 in Lyons to $1,155,000 in Niwot. Median prices for multifamily units sold ranged from $259,900 in Niwot to $391,000 in Superior.

Year-to-date through August 2018 ranged from $259,900 in Niwot to $453,075 in Superior for multifamily units sold.

Median prices for single-family units sold ranged from $449,000 in Longmont to $1,010,000 in Niwot.

The City of Boulder has a lower percentage of owner-occupied units than average compared to the rest of the state, reflecting the demand for rental housing among university students. About 53.2% of the housing units in the city are owner-occupied compared to 66% of housing units in Boulder County, 66.4% of housing units in Colorado and the national rate of 64.7%. Average rent in the City of Boulder currently stands at $2,009 compared to the City of Denver at $1,653.

REAL ESTATE Boulder Economic Council â&#x20AC;˘ 2018 Market Profile

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Housing values remained relatively stable in the Boulder area through the recession and continued to increase from 2014â&#x20AC;&#x201C;2018. According to the Federal Housing Finance Agencyâ&#x20AC;&#x2122;s House Price Index (based on repeat sales or refinancing of the same single-family properties), in Q2 2018 home prices in the Boulder MSA increased by 8.8% compared to Q2 2017.

COST OF LIVING

REAL ESTATE

Overall prices in the Denver-Boulder-Greeley metropolitan area surpassed those in the nation in 2018. Prices have outpaced the nation in four of the past five years. In 2018, housing costs in the Denver MSA was a large component of the price differential.

CONSUMER PRICE INDEX Year

Denver-Aurora-Lakewood Index % Change

United States Index % Change

2010

212.4

1.9%

218.1

1.6%

2011 2012 2013 2014 2015 2016 2017 2018*

220.3 224.6 230.8 237.2 240.0 246.6 255.0 260.8

3.7% 1.9% 2.8% 2.8% 1.2% 2.8% 3.4% 3.2%

224.9 229.6 233.0 236.7 237.0 240.0 245.1 250.1

3.2% 2.1% 1.5% 1.6% 0.1% 1.3% 2.1% 2.5%

Notes: For 2018, the values displayed are only for the first half of the year. *Percent change for 2018 was calculated as first half 2018 over first half 2017.

Source: Bureau of Labor Statistics. All items, not seasonally adjusted, 100=19821984.

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Boulder Economic Council â&#x20AC;˘ 2018 Market Profile

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LOCAL ECONOMY INCOME Within the City of Boulder, the median household income is significantly higher in comparison to the state and nation.

This large differential is mostly attributed to the high percentage of city residents who possess a bachelorâ&#x20AC;&#x2122;s or advanced degree increases resident incomes.

INCOME Annual Income Median Household Median Family Per Capita Income

City of Boulder

Boulder County

Colorado

U.S.

$66,524

$80,834

$69,117

$60,336

$115,513

$108,380

$84,918

$73,891

$42,778

$45,752

$36,345

$32,397

US Census, 2017 American Community Survey.

Over one-third (36.6%) of city households have an income above $100,000 compared to 41.7% for the county, 32.6% for the state, and 27.8 % for the nation. However, it is important to note that the student population in the city of Boulder increases the percentage of households with incomes near the poverty line.

LOCAL ECONOMY 27

COMMUTING PATTERNS On average, Boulder residents spend less time traveling to work than workers across both the state and nation. According to Census data, 86.6% of employed city of Boulder residents work within Boulder County. This compares to 72.4% of U.S. residents who work and live in the same county and 65.8% of Coloradans. The number of city residents who typically drive alone to work has remained around 51.3% compared to the national average of 76.4%.

COMMUTING TO WORK City of Boulder Residents

Boulder County Residents

Colorado Residents

U.S.

Work in county of residence

86.6%

80.1%

65.8%

72.4%

Mean travel time to work

18.8 minutes

22.4 minutes

24.9 minutes

26.1 minutes

Drive alone to work (car, truck, van)

51.3%

65.2%

75.2%

76.4%

Public transportation (excluding taxicab)

8.3%

5.0%

3.1%

5.1%

Carpool

4.9%

7.6%

9.3%

9.3%

Walk, bicycle, or other means

23.0%

10.9%

5.4%

4.6%

Work at home

12.5%

11.3%

7.0%

4.6%

2016 American Community Survey, US Census Bureau.

LOCAL ECONOMY Boulder Economic Council â&#x20AC;˘ 2018 Market Profile

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GROSS DOMESTIC PRODUCT The nominal gross domestic product (GDP) for Boulder County was an estimated $25.3 billion in 2017. In 2017, Boulder Countryâ&#x20AC;&#x2122;s real GDP grew by 3.1%.

LOCAL ECONOMY 29

VENTURE CAPITAL INVESTMENT A high concentration of advanced technology industries has helped fuel venture capital investment in Boulder firms.

According to data from CB Insights, from 2013â&#x20AC;&#x201C;2018 (year-to-date through Q3 2018), over $1.5 billion was invested in firms in the City of Boulder, representing 27.8% of the total VC investment in Colorado companies.

In 2017, Boulder recorded $484.9 million in VC funding, or 41.1% of the total in Colorado. In Q1, Q2, and Q3 2018, firms located in the City of Boulder received $389.5 million in VC funding (25.4% of the total for Colorado companies).

Source: CB Insights.

Note: Venture Capital Investment includes convertible notes, seed/angel funding, venture capital, private equity, growth equity, grant, other venture capital, and other funding. Excluded from the total are debt, mergers and acquisitions, initial public offerings, and dead companies. * 2018 investment represents Q1-Q3.

LOCAL ECONOMY

YEAR

COLORADO

BOULDER

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*

$243,000,000 $84,000,000 $236,000,000 $161,000,000 $111,000,000 $267,000,000 $205,000,000 $203,000,000 $485,000,000 $390,000,000

$657,000,000 $487,000,000 $843,000,000 $1,068,000,000 $726,000,000 $1,135,000,000 $1,022,000,000 $361,000,000 $1,181,000,000 $1,536,000,000 Source: CB Insights

2018 investment represents Q1-Q3.

Boulder Economic Council â&#x20AC;˘ 2018 Market Profile

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TOURISM According to the most recent Boulder Convention and Visitors Bureauâ&#x20AC;&#x2122;s Economic Impact of Tourism report, the economic impact of tourism in the City of Boulder topped half a billion ($515.4 million) in 2015. The estimated number of jobs in the City of Boulder attributable to tourism is 7,105, including 5,731 jobs directly tied to the tourism industry.

Estimated visitor-days (nights) totaled nearly 3.3 million in 2015, including 1.4 million day visitors and 1.9 million overnight visitors, in 2015. The report estimates total visitor expenditures of $422.8 million for the year.

RETAIL SALES Retail sales activity in the Boulder area has increased year-to-date through July in 2018 compared to 2017. Over this period, retail sales tax collections increased by 2.4% year-to-date through July 2018.

NET SALES TAX RECEIPTS: CITY OF BOULDER Accommodations

Admissions

Eating Places

Downtown Boulder

Twenty Ninth Street

2010

$3,269,618

$564,432

$10,930,482

$5,876,454

$6,497,161

2011

$4,797,280

$586,303

$11,838,300

$6,281,046

$6,809,744

2012

$5,048,277

$622,444

$12,937,276

$6,451,278

$7,721,419

2013

$4,905,937

$530,427

$13,002,411

$5,999,753

$7,927,165

2014

$5,897,602

$545,592

$14,270,670

$6,966,168

$8,274,732

2015

$6,385,073

$634,318

$16,462,342

$7,961,633

$9,243,257

2016

$6,944,033

$758,807

$16,948,821

$9,040,211

$9,170,268

2017

$7,056,993

$80,950

$17,433,097

$8,908,035

$8,550,783

2018

$6,380,551

$580,375

$13,684,148

$8,034,790

$6,487,342

LOCAL ECONOMY

Year

City of Boulder Sales & Use Tax Revenue Report (Sales and use Tax increased from 3.56% to 3.86% on 1/1/15)

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ABOUT THE BOULDER ECONOMIC COUNCIL The Boulder Economic Council, the economic development arm of the Boulder Chamber, is a group of prominent business and community leaders committed to Boulder and its economic well-being. The council supports the healthy business sector necessary to sustain the cultural amenities, education, transit, open space and other facets of Boulder’s outstanding quality of life.

The group helps lead the community in creating an economic vision and strategy that fosters primary employer retention and growth. Boulder Economic Council members are uniquely positioned to help formulate major economic initiatives that shape Boulder’s future by virtue of their individual standings in the community, knowledge of the market, familiarity with available resources and the collaborative relationships they have established.

Council members and staff work to promote Boulder’s economic vitality through work with both emerging and established enterprises.

Boulder Economic Council activities include working to retain Boulder’s home-grown businesses that have helped to create the character of our community; providing information and support for local businesses and companies interested in Boulder; supporting organizations that provide entrepreneurs with training, networking, mentoring, and access to funding sources; creating a unified voice for a strong local economy through private/public partnerships; and participating in regional and statewide economic initiatives.

2018 BOULDER ECONOMIC COUNCIL MEMBERS AstraZeneca Ball Aerospace Berg Hill Greenleaf & Ruscitti BizWest Boulder Area Realtors Association Boulder Community Health Foundation Boulder Convention & Visitors Bureau Boulder County Boulder Medical Center Boulder Valley School District Bryan Cave Leighton Paisner LLP Celestial Seasonings City of Boulder CliftonLarsonAllen Colorado Business Bank Colorado Enterprise Fund The Colorado Group, Inc. Crescent Real Estate LLC Crestone Capital

Daily Camera Dean Callan & Company, Inc. Eide Bailly EKS&H Elevations Credit Union Emerson Envision Energy First National Bank First Western Trust Front Range Community College Gibbons-White, Inc. Google The Hiltons on Canyon Hotel Boulderado IBM JPMorgan Chase Justin’s KPMG Land Title Guarantee Company

Boulder Economic Council • 2018 Market Profile

Lexmark International Lockheed Martin Macerich/29th Street MidFirst Bank Northrop Grumman Pinnacle Foods Premier Members Credit Union Qualcomm Snell & Wilmer LLP Tebo Properties Terrapin Care Station Twitter University of Colorado Boulder Wells Fargo Bank Western Disposal The WW Reynolds Companies Xcel Energy Zayo Group

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2440 PEARL ST. ◆ BOULDER, CO 80302 ◆ WWW.BOULDERECONOMICCOUNCIL.ORG