Monthly Archives :

November 2016

Do Net Migration Figures Suggest Slower Growth?

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Denver and the surrounding metropolitan statistical area (MSA) which includes Broomfield, has been growing at an unprecedented pace but according to the apartment listing site Abodo, net migration figures reported by the Census Bureau tell a slightly different story.

Of the 50 most-populated metropolitan areas in the country, the Denver-Aurora-Lakewood MSA ranks second for the largest percentage of new residents from elsewhere in the U.S. at 9.44 percent between 2014-2015. We have of course been hearing similar statistics for months. However, according to Abodo, the same Denver-Aurora-Lakewood MSA also lost residents at 9.25 percent, resulting in a net migration of merely 0.19 percent. It should be noted that these figures do not take into account Coloradans moving from another area in the State to the MSA.

Extrapolating on this data it is unclear why these migration figures are so stark but career development as professionals “chase careers into the city, and continue to chase them out” is put forward as one theory by Abodo. What is abundantly clear is that the population of the United States is one of the most mobile in the world and Millennials drive this pattern making up 43 percent of all movers between 2007 and 2012.

With rising costs in our largest cities such as New York, Los Angeles and Chicago, mid-size MSAs such as ours currently remain attractive due to lower rents, a lower cost of living, an increasingly robust job market and in our case the unique outdoor lifestyle available in Colorado. We shouldn’t however ignore overall net migration nor underestimate the impact of our own rising costs particularly around housing.

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To learn more about Broomfield’s exciting new economic development program, the Access Broomfield Economic Coalition, click here.

Boulder Sugar Tax – What Happens Next?

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On election day, City of Boulder residents passed what will become the nation’s highest tax on sugary drinks at 2 cents per ounce. For the purposes of the ordinance, any drinks with more than 5 grams of added sugar per 12 ounces will be subject to the tax. The ordinance is scheduled to come into effect on July 1st.

Looking to some of the other US cities that have implemented similar taxes, there are many questions around implementation. For example, what will occur with health-oriented drinks such as Kombucha, will exceptions be made? Another primary issue is around distribution, will city-based businesses simply drive outside the City limits to purchase these beverages wholesale and thereby avoid the tax altogether?

Lastly, no exact determination has been made regarding the revenue that will be raised from this new tax, an anticipated $3.8 million in the first year. The ordinance calls for the money to be earmarked for public health programming but no details have been specified and no committee convened to make such determinations.

So, many questions surround the Boulder Sugar Tax, not least its efficacy, with numerous jurisdictions up and down the Front Range looking to see what happens next.

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To learn more about Broomfield’s exciting new economic development program, the Access Broomfield Economic Coalition, click here.

Area Home Inventory Set to Increase in 2017

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Residential Real Estate

Part of a series of presentations at the Boulder Valley Real Estate Conference held at the University of Colorado Tuesday, November 15th, Realtor D.B. Wilson began the morning with an insight into the residential market predicting that both inventory and the time a home is on the market will both increase modestly in 2017.

Fueled by both historically low interest rates and low unemployment, inventory is at its “lowest in 16 years,” Wilson said. As a result, Colorado ranks number 3 in the country for home price appreciation, almost double the national average of 5.6 percent.

Despite double digit home value appreciation on 2016, Wilson stated that lack of inventory negatively impacted sales in 2016 and that this trend should ease somewhat in 2017.

Due to a combination of demand from new incoming residents and the current construction defects law, new construction will likely be focused on town-homes and condominiums, Wilson reported. There is however no low-end price relief in sight, as many of these new projects are higher spec leaving still greater demand for affordable housing throughout the Boulder Valley, a topic addressed later during the conference.

In his predictions for 2017, Wilson anticipates area home price appreciation between 9-11 percent (including Broomfield) which will remain some the highest growth in the country.

Commercial Real Estate

Reporting on commercial real estate trends, Angela Topel with Gibbons-White Inc., remarked on the number of cranes visible throughout the Boulder Valley, indicative of the current growth trend. She did however warn that there might be a market correction in 2017/18 due to the unprecedented growth seen thus far although she did not elucidate.

Offering some predictions for the next quarter, Topel said there will be about 1.3 million square feet of leasable office, retail and industrial space in Boulder, including space currently under construction.

Comparing office vacancy rates around the Boulder Valley, we are just under 10 percent in Broomfield, compared to 9 percent in Longmont, and roughly 6 percent in Louisville and Lafayette. Interestingly, Boulder is reported to be at about 7 percent citywide however, the vacancy rate is closer to between 11-13 percent when sublease space is taken into consideration.

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To learn more about Broomfield’s exciting new economic development program, the Access Broomfield Economic Coalition, click here.

National Association of Manufacturers Call for Unity

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Referencing the highly contentious presidential election, the National Association of Manufacturers (NAM) have gathered pledges from manufacturing and business leaders across the country in an effort to rebuild trust in our democratic and economic institutions, with the singular purpose of offering “abundant opportunity to all”.

In a call to respect the office of the President, NAM have stated that they will share ideas and expertise with President-elect Trump and the 115th Congress for the purposes of celebrating and defending the principles of “free enterprise, competitiveness, individual liberty and equal opportunity”.

NAM also state that they expect our newly elected leaders to not get caught up with “political extremes” but to focus entirely on solutions to lift up all Americans, thereby bringing about widespread growth and prosperity in this country. The association will offer greater detail regarding these solutions over the coming weeks.

See more at: http://www.nam.org/Newsroom/Press-Releases/2016/11/Manufacturers-to-President-Elect–We-Are-the-Solution/#sthash.dHxGGTVj.dpuf

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To learn more about Broomfield’s exciting new economic development program, the Access Broomfield Economic Coalition, click here.

Advanced Manufacturer Leaving Broomfield

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As reported in Biz West and the Daily Camera, Forge Nano, formerly known as PneumatiCoat Technologies, will soon be operating in Louisville. The move comes after the company sought $20 million in Series A funding to increase its production from a 30-ton per-year pilot plant to a 300-ton per-year light commercial production plant.

Forge Nano, which specializes in nano-coating technology for batteries and works with the likes of LG, Samsung, Sony and Panasonic currently employs 17 people but anticipates that number should grow to 20 by the end of this year and 40 the end of next year with the increased production.

Obviously it is wonderful to see a local company born out of the University of Colorado grow and succeed but somewhat bittersweet to see them leave Broomfield, particularly as they now look to double their workforce.

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To learn more about Broomfield’s exciting new economic development program, the Access Broomfield Economic Coalition, click here.

Young Broomfielder on Shark Tank

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Jack Bonneau, a sixth-grade student from STEM Lab and young entrepreneur, recently appeared on the TV show Shark Tank with his business – Jack’s Stands & Marketplace. On Friday, November 11 Jack’s episode will air on ABC. STEM Lab will host a viewing party and town hall interview with Jack on November 11 from 7 – 9 p.m. at Adams 12 Five Star Schools Educational Support Center, 1500 E. 128th Ave. in Thornton. Jack’s mentor, former Denver Bronco Reggie Rivers, will be in attendance leading the town hall where Jack will talk about his business, his journey to Shark Tank and share stories from other great young entrepreneurs he knows.

You can read more about Jack and his path to success in the New York Times article, “Some Kids Sell Lemonade. He Starts a Chain.

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To learn more about Broomfield’s exciting new economic development program, the Access Broomfield Economic Coalition, click here.

Great Momentum in Broomfield

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As reported by Channel News 7, three large announcements for Broomfield in the last quarter equates to roughly $500 million in new capital investment for the City and County. Two of these announcements, IKEA and JP Morgan Chase are going to be situated around Highway 7 and I-25, while Viega is bringing its new U.S. Headquarters to Interlocken.

Obviously projects such as these do not happen overnight with negotiations spanning months and years but this recent spate of activity points to significant momentum for Broomfield. We hope to capitalize on this growth as a community, growing our existing companies while continuing to attract new businesses.

Congratulations to everyone involved in making these projects a reality in Broomfield!

America’s 50 Best Cities to Live – Broomfield Ranks No. 1

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Quoted directly from 24/7 Wall St. and reported in USA Today:

To determine America’s best cities to live in, 24/7 Wall St. reviewed data on the 550 U.S. cities with populations of 65,000 or more as measured by the U.S. Census Bureau. Based on a range of variables, including crime rates, employment growth, access to restaurants and attractions, educational attainment, and housing affordability, 24/7 Wall St. identified America’s 50 Best Cities to Live.

1. Broomfield, Colorado
> Population: 65,065
> Median home value: $342,800
> Poverty rate: 4.6%
> Pct. with at least a bachelor’s degree: 56.1%

Broomfield boasts several economic features that are likely quite attractive to families browsing for a new city. Less than 5% of city residents live in poverty, for example, a fraction of the national poverty rate of 14.7%. The health of a city’s job market is one of the most universal characteristics of a highly desirable city. Not only is Broomfield’s annual unemployment rate of 3.3.% is one of the lower rates of U.S. cities, but also the number of jobs in the city grew by 8.0% from 2013 through last year, double the comparable national growth rate. If education levels of a population are any indication of the quality of jobs in an area, then the jobs offered in Broomfield are high skilled and high paying. Well over half of adults in the city have at least a bachelor’s degree, one of the higher college attainment rates of any U.S. city.

Uncertainty Around Level 3 Acquisition

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As reported in the Denver Post, CenturyLink Inc. announced that it is planning to buy Broomfield’s Level 3 Communications in a deal valued at $34 billion. According to the paper, the combined company will be headquartered in Monroe, Louisiana however, “few details were shared on what the acquisition means for local operations and thousands of Colorado employees”. CenturyLink’s senior corporate communications manager Frank Tutalo was quoted as saying that the company, “will maintain a significant presence in Colorado as well as the Denver metropolitan area.” It is estimated that Level 3 employs approximately 1,000 workers in Broomfield. Although approved by each company’s respective board, the deal is still subject to investor and regulator approval.