2020 Boulder Winter Market Profile

MARKET PROFILE BOULDER, COLORADO DECEMBER 2020

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 ... 19 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 .......................................................................31

ABOUT THE BOULDER ECONOMIC COUNCIL • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 32

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 155 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: 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 • Winter 2020 Market Profile

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DEMOGRAPHICS DEMOGRAPHICS

POPULATION AND GROWTH In 2019, the city’s total population topped 105,000, including students at the University of Colorado Boulder. More than half of residents rent (52%) and the student population lowers the household income statistics for the city— approximately 21.2% of city households lived below an annual income of $25,000 in 2019.

Population and Housing City of Boulder 2019 Population

105,670

2019 Housing Units

45,954

Source: U.S. Census Bureau and the Colorado State Demography Office.

The city of Boulder’s population has grown at a slower pace than the state of Colorado’s over the last four decades. In the 1980s, population grew at a compound annual growth rate of 0.8%, accelerating to 1.3% in the 1990s, followed by 0.3% growth in the 2000s and 1.2% from 2010–2018.

Source: U.S. Census Bureau and the Colorado State Demography Office, City of Boulder.

Boulder remained the largest city in Boulder County in 2019, making up 32.5% of the county’s total population of 326,196, followed

by Longmont, Lafayette, and Louisville.

Source: Colorado State Demography Office. Note: Municipalities include only the portion within Boulder County.

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DEMOGRAPHICS

Population by Area

Source: Colorado State Demography Office *Cities in more than one county (figures include Boulder County population only).

DEMOGRAPHIC CHARACTERISTICS The following demographic characteristics of city of Boulder residents were obtained from the U.S. Census Bureau 2019 American Community Survey (ACS) released in September 2020. This survey includes population in group quarters, such as college dorms.

AGE The 2019 median age of city of Boulder residents was 28.9. This compares to a median of 37 for Boulder County, 37.1 for Colorado, and 38.5 years for the nation. An estimated 29.3% 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 (9.2% and 9.3%, respectively), highlighting the effect of the university on city demographics.

Source: 2019 American Community Survey.

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DEMOGRAPHICS

EDUCATION Nearly all city residents age 25 or older have a high school diploma or higher (97%). Just over three-quarters of the population (78.8%) have earned a bachelor’s or advanced degree compared to 33.1% for the nation, 42.6% for the state, and 64.8% for Boulder County.

Source: US Census, 2019 American Community Survey (*includes associate degree).

ETHNICITY Census data report that 87.7% of Boulder’s population is White, 7% is Asian, 1.3% is Black or African American, 0.2% 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 (91.2%) is U.S. born, slightly higher than the Boulder County, Colorado, and national averages. The remaining 8.8% of the population is foreign born.

Ethnicity

Source: US Census, 2019 American Community Survey. *Race alone or in combination with one or more other races.

Place of Birth by Nativity and Citizenship Status

Source: US Census, 2019 American Community Survey. *Includes Puerto Rico, U.S. Island areas, or born abroad to American parent(s).

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DEMOGRAPHICS

DEMOGRAPHIC SNAPSHOT The table below includes select demographic data from the U.S. Census Bureau’s 2019 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

105,670

326,196

5,758,736

328,239,523

Number of Households

42,462

131,854

2,235,103

122,802,852

Average Household Size

2.22

2.38

2.52

2.61

Average Family Size

2.87

2.96

3.10

3.23

% Family Households (families)

40.33%

56.85%

63.61%

64.81%

% Households with children under 18

17.83%

24.12%

26.63%

26.45%

Male

52.65%

50.75%

50.44%

49.23%

Female

47.35%

50.39%

49.56%

50.77%

Median age

28.9

37

37.1

38.5

Under 5 years old

1.95%

4.31%

5.68%

5.91%

18 years or older

87.37%

81.14%

78.18%

77.77%

65 years or older

12.29%

14.58%

14.68%

16.47%

AGE

EDUCATION

(Population 25 or older) High school graduate or higher

97.00%

94.4%

92.30%

88.60%

Bachelor’s degree or higher

78.80%

64.80%

42.60%

33.10%

Graduate or professional degree

40.60%

29.2%

16.00%

12.80%

% of population in workforce (16 or older)

66.30%

69.10%

68.50%

63.60%

INCOME Median household income

$74,900

$88,535

$77,127

$65,712

Median family income

$127,023

$112,791

$95,164

$80,944

Per capita income

$42,203

$51,415

$41,053

$35,672

Source: US Census Bureau, 2019 American Community Survey.

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CITY OF BOULDER (%)

BOULDER COUNTY (%)

COLORADO (%)

U.S. (%)

Management, business, science, arts

59.95

55.53

45.13

38.85

Sales and office

11.14

8.88

5.91

6.19

Service

5.93

7.02

4.38

3.30

Natural resources, construction, maintenance

4.13

4.15

4.06

4.19

Production, transportation, material moving

0.97

1.40

2.15

2.17

DEMOGRAPHICS

OCCUPATION

HOUSING 1-unit detached housing (single family)

39.32%

58.26%

62.40%

61.31%

Built 2000 or later

15.80%

21.10%

26.50%

20.60%

Owner-occupied housing units

47.96%

61.61%

65.85%

64.11%

Renter-occupied housing units

52.04%

38.39%

34.15%

35.89%

Vacant housing units

7.60%

6.19%

9.29%

12.05%

Median value owner-occupied homes

$795,000

$592,000

$394,600

$240,500

Median gross rent

$1,659

$1,637

$1,369

$1,097

Source: US Census Bureau, 2019 American Community Survey.

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Boulder Economic Council • Winter 2020 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.

PRIMARY INDUSTRIES Based on NAICS Code Classification • • • • • •

Professional, scientific, and technical services Manufacturing Health care and social assistance Accommodation and food services Retail trade Information

KEY INDUSTRY CLUSTERS Aerospace Energy and natural resources Information technology Biosciences Natural and organic products Research Outdoor recreation

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 Google

• • • • • •

IBM Medtronic Pfizer Twitter UCAR/NCAR University of Colorado Boulder

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

BI Inc. Boulder Medical Center Elevations Credit Union Emerson/Micro Motion Hain Celestial Group IHS Markit Lockheed Martin

• • • • • • •

LogRhythm NIST NOAA Northrop Grumman Qualcomm Research Electro-Optics Ricoh Production Print Solutions

• • • • •

Spectra Logic Splunk Uplight Wells Fargo Zayo Group LLC

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KEY INDUSTRY CLUSTERS The key industry clusters that have the largest employment concentration in Boulder County MSA include: Aerospace, Medical Devices and Diagnostics, Intellectual, IT - Software, and Healthcare and Wellness. 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), and KBI BioPharma (Biosciences).

A cluster refers to a geographical agglomeration of industries or companies serving a particular field. The Metro Denver Economic Development Corporation profiled 17 industry clusters in 2019 for the Boulder MSA, examining the identified clusters in the region using the organization’s definitions of clusters for the purposes of regional comparison. Location quotient is an indicator of concentration of employment in select industries based on comparison of local and national percentages.

INDUSTRIES & EMPLOYMENT

Industry Clusters: Boulder MSA Industry Cluster

Number of Businesses

Total Employment

Location Quotient Nation = 1.0

Aerospace

43

5,977

11.35

Medical Devices and Diagnostics

88

3,923

5.85

Renewable Resources

35

799

4.83

Intellectual

349

3,926

3.47

IT-Software

1,041

15,131

3.03

Pharmaceuticals & Biotechnology

100

1,742

2.67

Beverage Production

30

1,267

2.45

Broadband & Digital Communications

439

2,724

1.91

Healthcare and Wellness

3,833

25,710

1.01

Source: Metro Denver Economic Development Corporation, 2019.

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 a greater concentration of industry employment compared to the nation, and a location quotient of <1.0 indicates 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. In 2019, the City of Boulder had 684 primary employers, representing close to 32,000 employees.

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.”

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EMPLOYMENT AND GROWTH The city of Boulder is an important employment center for Boulder County, representing approximately 53% of the countyâ&#x20AC;&#x2122;s total employment (excluding self-employed). The Colorado Department of Labor and Employment estimates for September 2020 indicate jobs in Boulder County totaled 188,461. Year-over-year job growth progressed uninterrupted following the recession of 2008 until the COVID-19 crisis hit in March 2020. Employment in both the City of Boulder and Boulder County decreased in 2020 due to job loss because of the pandemic and business closures.

INDUSTRIES & EMPLOYMENT

Source: Colorado Department of Labor and Employment, Current Employment Statistics, 12 month rolling average.

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.

TOTAL EMPLOYMENT BY INDUSTRY Excluding self-employed individuals, the largest percentage (18%) of workers in Boulder County 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 also represents 18% of employment.

Source: Colorado Department of Labor and Employment, Quarterly Census of Employment and Wages.

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The city of Boulder has a similar employment composition to Boulder County, with the majority of employees in the Government; Professional, Scientific, and Technical Services; and Manufacturing sectors.

Employers and Employment by Sector in City of Boulder Firms Professional, Scientific, and Technical Services

Employees

LQ

2,139

30.1%

18,180

18.4%

2.85

26

0.3%

17,806

18.0%

1.22

Manufacturing

251

3.5%

10,879

11.0%

1.27

Accommodation and Food Services

402

5.7%

9,621

9.7%

1.03

Health Care and Social Assistance

731

10.3%

9,494

9.6%

0.70

Retail Trade

520

7.3%

8,136

8.2%

0.78

Information

296

4.2%

5,777

5.8%

3.03

Wholesale Trade

401

5.6%

3,370

3.4%

0.86

Other Services

566

8.0%

2,928

3.0%

0.96

Administrative and Support and Waste Management

282

4.0%

2,553

2.6%

0.41

Finance and Insurance

364

5.1%

2,379

2.4%

0.59

Arts, Entertainment and Recreation

162

2.3%

1,745

1.8%

1.08

Educational Services

185

2.6%

1,734

1.8%

0.88

Construction

189

2.7%

1,474

1.5%

0.30

Real Estate, Rental and Leasing

372

5.2%

1,246

1.3%

0.81

Management of Companies and Enterprises

135

1.9%

836

0.8%

0.52

Transportation and Warehousing

30

0.4%

651

0.7%

0.18

Other

24

0.3%

143

0.1%

-

7,113

100.0%

98,996

100.0%

1.00

Government (includes public universities and schools)

INDUSTRIES & EMPLOYMENT

Total

Source: Colorado Department of Labor and Employment (QCEW 2019), Business Research Division, University of Colorado Notes: Location Quotient (LQ) is an indicator of concentration of employment in select industries based on camparison of local and national percentages. Nation = 1.0%

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EMPLOYER SIZE (PRIVATE) Most of the estimated 7,087 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 36.9% of the workers.

INDUSTRIES & EMPLOYMENT

Source: Colorado Department of Labor and Employment.

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

Source: Colorado Department of Labor and Employment.

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EMPLOYMENT BY OCCUPATION While the largest percentage of employees in the Boulder MSA are employed in Office and Administrative Support (10.8%), Sales (9.6%), and Food Services (9.5%) occupations, the area has a very high concentration of employment in science, computer, and engineering occupations, including: • Life, Physical and Social Science occupations (3.51 times national average)

- Physicists (35.5 times national average)

- Biochemists and biophysicists (8.7 times national average)

- Chemists (3.1 times national average)

- Environmental scientists and specialists, including health (9.8 times national average)

INDUSTRIES & EMPLOYMENT

• Computer and Mathematical occupations (2.62 times the national average)

- Software developers, applications (4.7 times national average)

- Computer and information research scientists (4.4 times national average)

- Software developers, systems software (2.5 times national average) • Architecture and Engineering occupations (2.53 times the national average)

- Aerospace engineering and operations technicians (10.6 times national average)

- Architects, except landscape and naval (2.9 times national average)

- Computer hardware engineers (13.6 times national average)

- Biomedical engineers (8.3 times national average)

Employment by Occupation: Boulder MSA Occupation (SOC code) May 2019

Employees

%

LQ

All Occupations (000000)

185,810

100.0%

1.00

Office and Administrative Support Occupations (430000)

20,000

10.8%

0.81

Sales and Related Occupations (410000)

17,850

9.6%

0.98

Food Preparation and Serving Related Occupations (350000)

17,600

9.5%

1.03

Business and Financial Operations Occupations (130000)

17,100

9.2%

1.65

Computer and Mathematical Occupations (150000)

15,100

8.1%

2.62

Education, Training, and Library Occupations (250000)

11,790

6.3%

1.05

Management Occupations (110000)

9,520

5.1%

0.93

Healthcare Practitioners and Technical Occupations (290000)

9,720

5.2%

0.89

Production Occupations (510000)

9,400

5.1%

0.81

Architecture and Engineering Occupations (170000)

8,310

4.5%

2.53

Transportation and Material Moving Occupations (530000)

8,840

4.8%

0.56

Life, Physical, and Social Science Occupations (190000)

5,730

3.1%

3.51

Personal Care and Service Occupations (390000)

4,600

2.5%

1.1

Installation, Maintenance, and Repair Occupations (490000)

5,080

2.7%

0.70

Building and Grounds Cleaning and Maintenance Occupations (370000)

4,330

2.3%

0.77

Construction and Extraction Occupations (470000)

4,850

2.6%

0.62

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

4,100

2.2%

1.61

Healthcare Support Occupations (310000)

5,350

2.9%

0.65

Protective Service Occupations (330000)

2,240

1.2%

0.51

Community and Social Service Occupations (210000)

2,530

1.4%

0.89

Legal Occupations (230000)

1,420

0.8%

0.98

350

0.2%

0.57

Farming, Fishing, and Forestry Occupations (450000)

Source: Bureau of Labor Statistics, Occupational Employment Statistics, May 2019. LQ (Location Quotient) is an indicator of concentration of employment in select industries based on comparison of local and national percentages.

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AVERAGE WAGES BY INDUSTRY AND OCCUPATION According to Colorado Department of Labor and Employment data (QCEW), the average annual wages for employees in the city of Boulder (excluding self-employed and contract labor) was $84,404 in 2019 compared to an average of $73,961 for Boulder County and $61,821 for Colorado.

Average Annual Wages by Industry

(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

$132,329

$127,980

$148,598

Information

$148,380

$132,529

$109,382

Finance and Insurance

$160,414

$127,064

$101,823

Professional, Scientific, and Tech Services

$150,690

$136,702

$103,231

Manufacturing

$93,152

$84,746

$73,936

Wholesale Trade

$101,746

$108,486

$90,351

Government (includes public universities and schools)

$70,535

$63,910

$58,963

Construction

$65,324

$60,177

$64,600

Real Estate and Rental and Leasing

$57,640

$58,959

$61,348

Health Care and Social Assistance

$53,968

$52,754

$52,725

Transportation and Warehousing

$43,176

$47,843

$58,801

Other Services

$46,548

$42,834

$42,383

Administrative and Waste Mgmt Services

$51,031

$45,016

$45,869

Educational Services

$38,147

$40,876

$42,489

Retail Trade

$35,649

$36,357

$33,795

Arts, Entertainment, and Recreation

$23,084

$29,193

$38,351

Accommodation and Food Services

$27,284

$23,991

$24,817

Mining (includes oil and gas extraction)

$111,004

$95,116

$124,764

Utilities

$159,047

$124,212

$110,321

Agriculture, Forestry, Fishing and Hunting

$46,327

$41,229

$40,419

Total Industries

$84,404

$73,961

$61,821

Source: Colorado Department of Labor and Employment (QCEW 2019), 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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INDUSTRIES & EMPLOYMENT

Average wages (including both full- and part-time workers) in Boulder vary widely by industry, ranging from a low of $23,084 for the Arts, Entertainment, and Recreation industry to a high of $160,414 for the Finance and Insurance industry. Industries that pay higher than average wages include: • Finance and Insurance • Information • Management of Companies and Enterprises • Manufacturing • Professional, Scientific, and Technical Services • Wholesale Trade

Data from the Bureau of Labor Statistics (OES) for the Boulder MSA (Boulder County) indicate the average annual wage for all occupations is $67,160 compared to $57,690 for Colorado and $53,490 for the United States. Management occupations earn the highest with an annual average wage of $149,760. Meanwhile, the median annual wage for the Boulder MSA is $51,520, compared to $44,250 for Colorado and $39,810 for the United States. Architecture and engineering occupations have the highest median annual wage.

Median Annual Wage by Occupation, 2019 Occupation (SOC code)

INDUSTRIES & EMPLOYMENT

Boulder MSA

Colorado

U.S.

All Occupations (000000)

$51,520

$44,250

$39,810

Management Occupations (110000)

$134,350

$119,690

$105,660

Legal Occupations (230000)

$87,530

$66,300

$69,820

Computer and Mathematical Occupations (150000)

$116,780

$98,030

$88,340

Architecture and Engineering Occupations (170000)

$141,980

$59,250

$81,440

Life, Physical, and Social Science Occupations (190000)

$56,320

$48,180

$68,160

Healthcare Practitioners and Technical Occupations (290000)

$60,490

$60,180

$46,090

Business and Financial Operations Occupations (130000)

$27,550

$43,830

$81,820

Education, Training, and Library Occupations (250000)

$60,340

$55,250

$57,710

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

$37,780

$54,650

$51,150

Protective Service Occupations (330000)

$52,470

$22,120

$68,190

Sales and Related Occupations (410000)

$127,380

$28,470

$43,060

Community and Social Service Occupations (210000)

$45,500

$41,580

$50,480

Construction and Extraction Occupations (470000)

$56,120

$24,220

$52,580

Installation, Maintenance, and Repair Occupations (490000)

$54,250

$28,330

$50,130

Office and Administrative Support Occupations (430000)

$36,040

$26,220

$41,040

Production Occupations (510000)

$44,110

$29,630

$40,140

Transportation and Material Moving Occupations (530000)

$51,820

$37,580

$37,920

Healthcare Support Occupations (310000)

$37,470

$27,180

$31,010

Personal Care and Service Occupations (390000)

$34,890

$47,430

$31,260

Building and Grounds Cleaning and Maintenance Occupations (370000)

$54,250

$28,330

$31,250

Farming, Fishing, and Forestry Occupations (450000)

$37,470

$27,180

$31,340

Food Preparation and Serving Related Occupations (350000)

$56,120

$24,220

$26,670

Source: Bureau of Labor Statistics, Occupational Employment Statistics, May 2019.

UNEMPLOYMENT RATE Through August 2020 year-to-date, the unemployment rate in Boulder was significantly higher than it was in 2019 for the same period. The annual unemployment rate was 4.1% in 2014, 3.1% in 2015, 2.5% in 2016, 2.2% in 2017, 2.7% in 2018, 2.3% in 2019, and 6% in 2020 year-to-date through August (not seasonally adjusted).

INDUSTRIES & EMPLOYMENT

Source: Bureau of Labor Statistics (not seasonally adjusted).

Even through the pandemic, Boulderâ&#x20AC;&#x2122;s unemployment rate has remained consistently below state and national rates.

After peaking in the summer of 2020, Boulderâ&#x20AC;&#x2122;s unemployment rate has been falling through the latter half of the year.

Source: Bureau of Labor Statistics (not seasonally adjusted).

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Boulder Economic Council â&#x20AC;˘ Winter 2020 Market Profile

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REAL ESTATE COMMERCIAL REAL ESTATE According to the Newmark Grubb Knight Frank (NGKF) Boulder Market Report for Q1 2020, the Boulder office market posted negative absorption, a decrease in vacancy, and stable rental rates. In Q1 2020, NGFK reported approximately 590,437 square feet of vacant office space; 213,639 square feet of vacant R&D/flex space; 244,408 square feet of vacant industrial/warehouse space; and 201,326 square feet of vacant retail space within the city of Boulder (excluding buildings smaller than 10,000 square feet and owner-occupied government and medical buildings). Vacancy and lease rates vary by space location and type.

Vacancy rates for commercial space in the city of Boulder in first quarter 2020 ranged from 2.5% for industrial/flex space to 7.1% for office. Net absorption (net increase or decrease in physically occupied space between two points in time excluding space that is leased but not occupied) through Q1 2020 was negative for office, industrial and R&D/flex, and positive for retail.

REAL ESTATE

Source: Newmark Grubb Knight Frank Boulder Market Reports.

Source: Newmark Grubb Knight Frank Boulder Market Reports. Note: 2020 data is from Q1 only.

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RESIDENTIAL REAL ESTATE Census continues to report higher than average home values for the city of Boulder, with the median home price at $940,000 in 2019, an increase of $20,475 from 2018. This compares to $592,000 for the county, $394,600 for the state, and $240,500 for the nation. The city’s location at the base of the Rocky Mountains, along with the presence of the university and research facilities, contributes to this large differential.

The 2019 American Community Survey shows that 92.4% of the city’s housing units are occupied compared to 90.7% of the state’s housing units. Owner-occupied housing makes up 48% of occupied housing in the city while renteroccupied housing represents 52% of occupied housing units. The city’s median gross rent was reported at $1,659 per month.

More than half of the city’s residents moved into their current residence in 2010 or later (67%), a figure that remains significantly higher than the national average. The city’s housing units are older than the state and county units, with 52% of housing units built before 1980.

Housing Snapshot Overall occupancy rate Owner-occupied Avg household size Median value Vacancy rate Renter-occupied Avg household size Median gross rent Vacancy rate

City of Boulder 92.4% 48.0% 2.22 $795,000 1.2% 52% 2.28 $1,659 3.4%

Source: US Census, 2019 American Community Survey.

Boulder County 93.8% 61.6% 2.38 $592,000 0.4% 38.4% 2.35 $1,637 3.2%

Colorado 90.7% 65.9% 2.52 $394,600 1.0% 34.1% 2.32 $1,369 4.6%

U.S. 87.91% 64.1% 2.61 $240,500 1.5% 35.9% 2.44 $1,097 6.0%

REAL ESTATE Source: Boulder Area Realtors Association.

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Housing values remained relatively stable in the Boulder area through the recession and have steadily increased since 2012. 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 2020 home prices in the Boulder MSA increased by 1.55% compared to Q2 2019.

Source: Federal Housing Finance Agencyâ&#x20AC;&#x2122;s House Price Index. All Transactions Index. Not Seasonally Adjusted.

COST OF LIVING

REAL ESTATE

Overall prices in the Denver-Aurora-Lakewood MSA are higher than those in the nation in 2020. Price increases have outpaced the nation each year from 2014 to 2020.

Consumer Price Index

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*

Denver-Aurora-Lakewood Index % Change 220.3 3.7% 224.6 1.9% 230.8 2.8% 237.2 2.8% 240.0 1.2% 246.6 2.8% 255.0 3.4% 262.0 2.7% 267.0 1.9% 273.9 2.6%

United States Index % Change 224.9 3.2% 229.6 2.1% 233.0 1.5% 236.7 1.6% 237.0 0.1% 240.0 1.3% 245.1 2.1% 251.1 2.4% 255.7 1.8% 260.3 1.8%

Notes: For 2020, the values displayed are only for the first half of the year. *Percent change for 2020 was calculated as first half 2020 over first half 2019.

Source: Bureau of Labor Statistics. All items, not seasonally adjusted, 100=1982-1984.

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Boulder Economic Council â&#x20AC;˘ Winter 2020 Market Profile

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LOCAL ECONOMY INCOME The effect of University of Colorado students on the Boulder economy is apparent when looking at the difference between the City of Boulderâ&#x20AC;&#x2122;s median household and family incomes compared to other geographies. In the City of Boulder, median household income is 41% less than median family income, compared to 22% less in Boulder County and 19% less in both Colorado and the US.

Annual Income Median Household Median Family Per Capita Income

City of Boulder

Income

Boulder County

Colorado

U.S.

$74,900

$88,535

$77,127

$65,712

$127,023

$112,791

$95,164

$80,944

$42,203

$51,415

$41,053

$35,672

Source: US Census, 2019 American Community Survey.

The high percentage of city residents who possess a bachelorâ&#x20AC;&#x2122;s or advanced degree increases resident incomes. Over one-third (38%) of city households have an income above $100,000 compared to 43.4% for the county, 37.8% for the state, and 31.4% 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

Source: US Census, 2019 American Community Survey.

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COMMUTING PATTERNS On average, Boulder residents spend less time traveling to work than workers across both the state and nation. According to Census data, 85.5% of employed city of Boulder residents work within Boulder County. This compares to 72.2% of U.S. residents who work and live in the same county and 65.9% of Coloradans. The number of city residents who typically drive alone to work has decreased slightly, to 49.6%, compared to the national average of 75.9%.

Source: US Census Bureau.

Source: US Census Bureau.

Commuting to Work Work in county of residence

LOCAL ECONOMY

Mean travel time to work (minutes) Drive alone to work (car, truck, van) Public transportation (excluding taxicab) Carpool Walk, bicycle, or other means Work at home

City of Boulder Residents 85.5%

Boulder County Residents 79.3%

Colorado Residents

U.S. Residents

65.9%

72.2%

20.7

23.9

26.5

27.6

49.6%

65.2%

74.2%

75.9%

8.7%

5.5%

3.2%

5.0%

6.9% 18.9%

7.4% 8.2%

8.6% 4.9%

8.9% 4.5%

16.0%

13.7%

9.1%

5.7%

Source: 2019 American Community Survey, U.S. Census Bureau.

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GROSS DOMESTIC PRODUCT The nominal gross domestic product (GDP) for Boulder County was an estimated $27.5 billion in 2018. GDP declined by $249 million from 2008 to 2009 during the recession, a decrease of 1.2%. In nominal terms, however, Boulder GDP actually grew slightly, by 0.7%, in 2009, reflecting upward price pressures even during the downtown. In 2018, Boulder Countryâ&#x20AC;&#x2122;s real GDP grew by 2.9%.

Boulder County Real GDP Growth 2003-2018

Source: Bureau of Economic Analysis.

LOCAL ECONOMY

Source: Bureau of Economic Analysis.

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

According to data from CB Insights, from 2015â&#x20AC;&#x201C;2020 (year-to-date through Q3 2020), over $2.1 billion was invested in firms in the city of Boulder, representing 88.5% of the total VC investment in Boulder County companies over this period.

In 2019, Boulder recorded $653.2 million in VC funding, or 86.3% of the total for Boulder County. Year-to-date through Q3 2020, firms located in the city of Boulder received $202.5 million in VC funding (83% of the total for Boulder County companies).

Source: Source: CB Insights (as of Q3 2020). 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.

YEAR

LOCAL ECONOMY

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BOULDER $155,800,000 $300,100,000 $140,200,000 $135,000,000 $227,700,000 $275,900,000 $215,000,000 $389,900,000 $413,800,000 $653,200,000 $202,500,000

BOULDER COUNTY $211,700,000 $510,900,000 $194,400,000 $157,400,000 $280,900,000 $297,700,000 $262,900,000 $412,200,000 $456,900,000 $757,300,000 $242,900,000 Source: CB Insights

2020 investment represents Q1-3.

Note: Data includes seed/angel, VC, and other venture capital; it excludes convertible notes, private equity, growth equity, debt, grant, M&A, IPO, dead, and other.

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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 decreased year-to-date through September in 2020 compared to 2019.

Over this period, retail sales tax collections decreased by 9.7% year-to-date through September 2020.

Source: Bureau of Economic Analysis

City of Boulder Sales and Use Taxes YTD through September Sources - Related to Current Economic Activity

2019 ($)

80,973,789

Rec MJ Additional 3.5%

1,369,423

Business Use Tax

8,206,576

Construction Use Tax

8,961,597

Motor Vehicle Use Tax Total Sales & Use Tax based on current economic activity

73,119,874

$ Change

YTD % Change

12 Month % Change

(7,853,915)

(9.7)

(5.97)

1,532,607

163,184

11.92

9.40

10,023,952

1,817,377

22.15

7.66

8,734,132

(227,465)

(2.54)

(13.06)

3,756,995

3,656,833

(100,163)

(2.67)

(5.51)

103,268,380

97,067,368

(6,200,982)

(6.00)

(5.2)

LOCAL ECONOMY

Sales Tax

2020 ($)

Source: City of Boulder Sales & Use Tax Revenue Report, September 2020.

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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 investors 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 investors 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.

2020 BOULDER ECONOMIC COUNCIL INVESTORS Ball Aerospace Berg Hill Greenleaf & Ruscitti BizWest BOK Financial Boulder Area Realtors Association Boulder Chamber 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 Enterprise Fund The Colorado Group, Inc. Corden Pharma Crescent Real Estate LLC Crestone Capital

Daily Camera Dean Callan & Company, Inc. Eide Bailly Elevations Credit Union Emerson First Western Trust FNBO Front Range Community College Gibbons-White, Inc. Google The Hiltons on Canyon Hotel Boulderado IBM IHS Markit Digital JPMorgan Chase KBI BioPharma KPMG Land Title Guarantee Company Lexmark International Lily’s Sweets

Boulder Economic Council • Winter 2020 Market Profile

Lockheed Martin Macerich/29th Street Manufacturer’s Edge MidFirst Bank National Renewable Energy Lab Northrop Grumman Plante Moran 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