Summary

● According to SmartAsset’s Most Livable Mid-Sized Cities – 2019 Edition report, HighlandsRanch ranked fourth. The report looked at economic factors, including median household income, unemployment rate, average commute time, and more to determine the rank-ing. The report cited a 33 percent growth rate in the median home value in HighlandsRanch and a low poverty rate of 1.1 percent as driving factors. Three other Coloradocities filled out the top three spots, which were Arvada, Centennial, and Westminster.

●● According to Embroker, a digital insurance company, Denver ranked first for metro

areas with the lowest startup costs. The study analyzed the 50 largest metropolitanareas for job growth, yearly median rent, energy cost, median base salary, state filing fees,and marginal corporate income tax. Denver’s yearly median salary of $61,325 outpacesthe national average, and the metro area ranked the highest for being a second officelocation due to the lowest median office rent for startups across all 50 MetropolitanStatistical Areas (MSAs).

●● The Consumer Electronic Show (CES) scoreboard ranked Colorado first of states doing the

most to promote innovation. Colorado received its highest ranking for EntrepreneurialActivity, receiving an A+, and received an A- in Grants Advanced Degrees, Tech Workforce,and Drones. Colorado was also one of 15 states named as an “Innovation Champion” byConsumer Technology Association, the owner and producer of the CES scoreboard.

●● Colorado ranked third on 24/7 Wall St.’s “Best and Worst States for Business” list. The

report created a weighted index of 42 measures in eight categories: economic conditions,business costs, state infrastructure, the availability and skill level of workforce, quality oflife, regulations, technology and innovation, and cost of living. Colorado ranked secondfor adults with a bachelor’s degree, fourth for 2018 venture capital deals per capita,tenth for real GDP growth, and 15th for average earnings per job. The report also notedthat over the next decade, the number of working-age state residents is projected toincrease by 10.5 percent, more than double the projected national growth rate of 4.6percent.

●● Forbes ranked Colorado ninth for the best states for business in their 2019 ranking. The

study looked at business costs, labor supply, regulatory environment, economic climate,and growth prospects to determine the ranking. Colorado’s top rankings were first forlabor supply, second for economic climate, and fourth for growth prospects. The state’slowest ranking was 39th for business costs.

Economic Headlines

Employment132,299

Up 4.1% from 3Q 2018

Unemployment Rate2.1%

Decreased 1.1% percentage points from 4Q 2018

Existing Home Sales2,051

Up 8.2% from 3Q 2018

Residential Building Permits740

Down 23.6% from 4Q 2018

Commercial Vacancy Rates

Douglas County Economic DevelopmentQuarterly Report - 4th Qtr 2019

Department of Community Development | Community and Resource Services100 Third St. | Castle Rock, CO 80104 | Ph: 303-660-7460 | douglas.co.us; search for business

SFA SFD

120,000

125,000

130,000

135,000

3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019

0.0% 1.0% 2.0% 3.0% 4.0% 5.0%

U.S.Colorado

Metro DenverParker

Castle RockDouglas County

4Q 2019

0.0%

4.0%

8.0%

12.0%

Office Industrial Flex Retail

4Q 2018

4Q 2019

500

750

1,000

4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019

-

500

1,000

1,500

4Q 2018 4Q 2019

Highlands Ranch

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Note: Industry data may not add to all-industry total due to rounding, suppressed data, and employment that cannot be assigned to an industry. Source: Colo. Dept. of Labor and Employment, Labor Market Information, QCEW.

Covered Employment by Industry Supersector, 3rd Qtr 2019Douglas County Metro Denver

3rd Qtr 2019

Yr/Yr % Change

3rd Qtr 2019

Yr/Yr % Change

Total All Industries 132,299 4.1% 1,708,233 2.4%Private Sector Mining & Logging 514 11.7% 15,729 8.5% Construction 9,569 6.2% 108,000 2.8% Manufacturing 1,994 -4.6% 90,745 1.9% Wholesale Trade 4,657 4.0% 1,419 1.4% Retail Trade 18,438 -1.1% 154,312 -0.4% Transportation, Warehousing, & Utilities 1,741 3.6% 66,045 8.6%

Information 5,166 -19.8% 59,222 1.5% Financial Activities 14,904 25.3% 116,123 1.4% Professional & Business Services 23,300 3.8% 324,033 3.7% Education & Health Services 16,170 5.6% 214,636 1.8% Leisure & Hospitality 18,035 4.2% 195,191 1.8% Other Services 4,194 1.7% 52,824 2.0%Government 13,608 3.5% 229,836 2.5%

1

Manpower Employment Outlook SurveyMetro Denver Companies

HiringCompanies Laying Off

Companies No Change Unsure

National2nd Qtr 2020 27% 23% 2% 3% 70% 73% 1% 1%1st Qtr 2020 26% 22% 4% 5% 70% 72% 0% 1%2nd Qtr 2019 35% 24% 1% 3% 63% 72% 1% 1%

Unemployment Rates4th Qtr

20184th Qtr

2019Douglas County 3.2% 2.1% Castle Rock 3.2% 2.3% Parker 3.3% 2.1%Metro Denver 3.4% 2.3%Colorado 3.6% 2.4%U.S. 3.6% 3.3%

Sources: Colo. Dept. of Labor and Employment, Labor Market Information; U.S. Bureau of Labor Statistics.

Jobs covered by unemployment insurance as reported in the QCEW. These positions represent the vast majority of total employment, although the self-employed, some agricultural workers, some domestic workers, and several other categories of workers are excluded. This data series lags the CES series by about six months and is available for the nation, states, MSAs, and counties.

1

Employment ActivityEmployment in Douglas County increased 4.1 percent between the third quarters of 2018 and 2019, adding 5,243 jobs over the year. Ten of the 13 supersectors reported increases in employment during the period, led by financial activities (+25.3 percent), mining and logging (+11.7 percent), and construction (+6.2 percent). The information supersector contracted the most, falling 19.8 percent over the year, followed by manufacturing (-4.6 percent) and retail trade (-1.1 percent).

Employment in Metro Denver grew at a rate of 2.4 percent between the third quarters of 2018 and 2019. Twelve of the 13 supersectors reported increases led by transportation, ware-housing, and utilities (+8.6 percent), mining and logging (+8.5 percent), and professional and business services (+3.7 percent). Retail trade reported the only decrease, falling 0.4 percent over the year.

UnemploymentThe unemployment rate in Douglas County fell 1.1 percentage points to 2.1 percent be-tween the fourth quarters of 2018 and 2019. The labor force increased 1.5 percent over the year, adding 2,950 people working or looking for a job during the period. Unem-ployment in Castle Rock fell 0.9 percentage points to 2.3 percent over the year, while the labor force in Castle Rock increased 1.6 per-cent, adding 570 people during the period. Parker reported an unemployment rate of 2.1 percent in the 4th quarter of 2019, 1.2 percentage points below the level from the same time last year, while the labor force in-creased 1.4 percent during the period.

Unemployment in Metro Denver fell 1.1 per-centage points over the year to 2.3 percent. Metro Denver’s labor force grew at a rate of 1.5 percent over the year, adding 26,910 in-dividuals working or looking for a job.

Colorado’s unemployment rate fell 1.2 per-centage points over the year to 2.4 percent during the fourth quarter of 2019, while the labor force grew 1.5 percent. The unem-ployment rate in the U.S. fell 0.3 percentage points over the year to 3.3 percent, while the national labor force grew 1 percent during the period.

Manpower Employment Outlook SurveyThe Manpower Employment Outlook Survey revealed that 27 percent of employers surveyed in the Denver-Aurora MSA will hire more employees in the second quarter of 2020, an increase of 1 percentage point from the previous quarter and a decrease of 8 percentage points compared with the same time last year. Employers surveyed reported that employers are optimistic to hire in multiple industries in the coming months but compared with the previous year more companies plan to maintain staff levels rather than expand.

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Residential Real Estate ● Plans were submitted to the City of Castle Pines for an additional 1,500 homes to be

included in The Canyons development. The development is a 3,343-acre stretch of land first approved in 2009. The original plan included 2,500 dwelling units before being ap-proved for an additional 1,000 multi-family units in 2018. North Canyons LLC, the project owner, asked to build an additional 1,500 housing units, bringing the total to 5,000. The proposal also calls for 167.5 acres of parkland and 21.18 acres for future school sites.

● ● TRI Pointe Homes plans to build 451 homes across five communities throughout Metro

Denver. The developer will add 46 townhomes to the Sterling Ranch community in Doug-las County, 74 duplexes in the Terrain community in Castle Rock, 71 homes in the Adonea community in Aurora, 50 homes at Reunion in Commerce City, and 92 townhomes at Candelas in Arvada. TRI Pointe is the seventh largest homebuilder in Metro Denver.

● ● United Development Companies bought a 10.3-acre parcel of land from the Diocese of

Colorado Springs at 5761 McArthur Ranch Road in Highlands Ranch and plans to rezone the property for a residential project. The company plans to build 54-alley-loaded homes and open space that will include a community park and trails.

Existing Home Sales Existing home sales in Douglas County increased 12.8 percent between the fourth quarters of 2018 and 2019, an increase of 179 homes sold during the period. Single-family detached home sales in Douglas County rose 12.6 percent over the year, rising by 149 homes during the period. Of the six submarkets, Castle Pines was the only to report a decline in detached home sales over the year, falling 20.5 percent, or by 9 homes, during the period. Lone Tree reported a 21.4 percent increase in detached sales, followed by Castle Rock (+20 percent) and Highlands Ranch (+9.4 percent). Castle Rock added the most home sales over the year, rising by 53 detached sales.

Single-family attached home sales in Douglas County increased 13.9 percent between the fourth quarters of 2018 and 2019, selling an additional 30 units during the period. Three of the six submarkets reported increases in attached home sales, with the largest increases reported in Highlands Ranch (+29.6 percent), Castle Rock (+7.1 percent), and Parker (+5.7 percent). Castle Pines reported the largest percentage decrease, falling from three attached sales to one in the fourth quarter of 2019, followed by Lone Tree (-5.3 percent). Highlands Ranch also added the most attached home sales over the year, rising by 16 sales.

Consumer ActivityConsumer Confidence IndexThe Consumer Confidence Index for the U.S. decreased 3.8 percent between the third and fourth quarters of 2019, falling to 127. Over the year, national consumer confidence fell 4.9 percent, down from 133.6 during the same time last year. The reading marks the third over-the-year decrease in the national index since the second quarter of 2016 and the second consecutive quarter of declining confidence. Colorado is included in the Mountain Region Index and the area reported a decrease in consumer confidence of 1.4 percent between the third and fourth quarters of 2019. Confidence decreased 2.5 percent over the year to 135.2, fall-ing 3.5 points during the period.

Source: Colorado Comps, LLC

continued on the next pg.

Douglas County Existing Home Sales, 4th Qtr 2019Douglas County Submarkets Total

Castle Pines Castle Rock Highlands Ranch Larkspur Lone Tree Parker Douglas

CountyHome Sales Single-Family Detached 4th Qtr 2019 35 318 371 1 34 207 1,335 4th Qtr 2018 44 265 339 - 28 201 1,186 Single-Family Attached 4th Qtr 2019 1 60 70 - 18 37 246 4th Qtr 2018 3 56 54 - 19 35 216 Average Sold Price Single-Family Detached 4th Qtr 2019 $688,631 $464,844 $557,313 $290,000 $784,941 $456,493 $543,621 4th Qtr 2018 $745,000 $463,253 $514,716 - $778,993 $472,057 $541,401 Single-Family Attached 4th Qtr 2019 $339,500 $299,718 $407,186 - $486,750 $269,989 $367,465 4th Qtr 2018 $422,667 $292,973 $365,326 - $458,484 $269,077 $335,457

Page | 4

Douglas County Residential Building Permits, 4th Qtr 2019Single-Family

DetachedCondominiums/

Townhomes Multi-Family

Total Units 4th Qtr

2019

Total Units 4th Qtr

2018Units

Avg. Valuation per Unit

UnitsAvg.

Valuation per Unit

Permits UnitsAvg.

Valuation per Unit

Aurora 84 48 84 $251,090 Castle Pines 78 28 74 $396,949 4 $267,661 Castle Rock 217 164 169 $319,934 38 $225,186 2 10 $123,440

Highlands Ranch 18 42 18 $243,066

LittletonLone Tree 4 4 4 $495,547 Parker 90 302 51 $417,546 39 $194,710 Unincorporated Douglas 249 381 219 $302,172 30 $149,224 Total Douglas County 740 969 619 $313,388 111 $195,479 2 10 $123,440

Note: Excludes permits for residential construction activity that does not affect overall housing inventory. Source: Douglas County and individual municipalities.

Residential Real Estate continued from pg. 3

Existing Homes - Average Sales The average sales price in Douglas County for single-family detached homes rose 0.4 percent between the fourth quarters of 2018 and 2019, an increase of $2,220. Highlands Ranch reported the largest price increase, rising 8.3 percent, or an additional $42,597 per home over the year, followed by Lone Tree (+0.8 percent) and Castle Rock (+0.3 percent). Lone Tree reported the largest av-erage detached home price at $784,941 in the fourth quarter of 2019. Castle Pines re-ported the largest over-the-year decrease, falling 7.6 percent, or by $56,369, followed by Parker (-3.3 percent). The average price of a single-family at-tached home in Douglas County increased 9.5 percent, rising by $32,007 over the year. Highlands Ranch reported the largest over-the-year increase, rising 11.5 percent, or an additional $41,860 per home during the peri-od. Attached prices in Lone Tree rose 6.2 per-cent, followed by Castle Rock (+2.3 percent) and Parker (+0.3 percent). Castle Pines re-ported the only over-the-year decrease, fall-ing 19.7 percent, representing $83,167 less per home during the fourth quarter of 2019.

ForeclosuresDouglas County reported an over-the-year decrease in foreclosure activity in the fourth quarter of 2019, falling 20 percent, or by 14 fewer foreclosure filings, during the period. Filings rose by 13 between the third and fourth quarters of 2019, an increase of 30.2 percent. Foreclosure filings in Metro Denver increased 4.3 percent over the year to 707 total filings,

rising by 29 during the period. Over the quar-ter, filings rose 9.8 percent, or by 63, in the fourth quarter of 2019.

Building PermitsResidential building permits in Douglas County decreased 23.6 percent between the fourth quarters of 2018 and 2019, falling by 229 permits. This was driven by a decrease in multi-family units from 356 units in the fourth quarter of 2018, to 10 in the fourth quarter of 2019, a decline of 97.2 percent. Condominiums/townhomes reported an increase of 164.3 percent, rising by 69 per-mits over the year to 111 total units, while single-family detached permits rose 8.4 per-cent, or by 48 units permitted, during the pe-riod. Three of the eight submarkets reported over-the-year increases, led by Castle Pines (+178.6 percent), Aurora (+75 percent), and Castle Rock (+32.3 percent). Unincorporated Douglas County reported the most units per-mitted at 249 in the fourth quarter of 2019. Parker reported the largest decrease, falling 70.2 percent, followed by Highlands Ranch (-57.1 percent) and unincorporated Douglas County (-34.6 percent). Littleton and Lone Tree reported no change in permits over the year.

The average valuation of single-family de-tached units permitted decreased 5.7 per-cent over the year to $313,388, representing $19,014 less per home during the period. Lone Tree reported the highest average valu-ation for single-family detached homes at $495,547, while Highlands Ranch reported the lowest valuation at $243,066 in the fourth quarter of 2019. The average valua-tion for single-family attached units rose 6.4

percent to $195,479 in Douglas County. Un-incorporated Douglas County reported the lowest single-family attached average valua-tion ($149,224), while Castle Pines reported the highest ($267,661). The average valua-tion for multi-family units was $123,440 in the fourth quarter of 2019.

Commercial Real EstateConstruction will soon begin on a four-story medical office building at Parker Adventist Hospital. The space will be used for internal medicine; OB/GYN; ear, nose and throat; and expanded medical oncology offices, and will be just under 82,000 square feet. Con-struction is expected to finish in 2021.

Office MarketThe vacancy rate for the office market in Douglas County decreased 0.7 per-centage points to 9.3 percent between the fourth quarters of 2018 and 2019. Highlands Ranch reported the largest decrease during the period, falling 2.2 percentage points to 6.8 percent, while vacancy in Castle Rock fell 0.9 percent-age points to 4.1 percent over the year. Lone Tree reported the largest increase in the vacancy rate between the fourth quarters of 2018 and 2019, rising 1.9 percentage points to 7.5 percent, fol-lowed by Parker which rose 1.4 per-centage points to 6.7 percent vacancy. The vacancy rate in Metro Denver fell 0.3 percentage points to 9 percent dur-ing the period.

continued on the next pg.

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Commercial Real Estate continued from pg. 4

continued on the next pg.Office rates are full service.

The average lease rate in Douglas County fell 0.5 percent to $25.69 per square foot be-tween the fourth quarters of 2018 and 2019. All four market areas reported over-the-year increases in the lease rate, with the largest growth reported in Highlands Ranch (+12.2 percent), followed by Parker (+3.9 percent), Castle Rock (+1.3 percent), and Lone Tree (+0.1 percent). Highlands Ranch reported the highest lease rate at $30.67 per square foot in the fourth quarter of 2019. The av-erage lease rate in Metro Denver increased 1.4 percent to $26.92 per square foot, $1.23

higher than the lease rate in Douglas County.

Industrial MarketThe industrial market vacancy rate in Doug-las County increased 4.9 percentage points to 8 percent vacancy between the fourth quarters of 2018 and 2019. All submarkets reported increases in the industrial vacancy rate, with the largest increases reported in Highlands Ranch (+70.8 percentage points) and Castle Rock (+7.5 percentage points). The large increase in Highlands Ranch was due to the recent addition of new space that

Douglas County Commercial Vacancy and Lease Rates by Property Type, 4th Qtr 2019Total Existing Sq. Footage Vacancy Rate Avg. Lease Rate (per sq. ft.)

4th Qtr 2019 4th Qtr 2018 4th Qtr 2019 4th Qtr 2018 4th Qtr 2019 4th Qtr 2018Office Castle Rock* 1,265,237 1,206,992 4.1% 5.0% $27.29 $26.94 Highlands Ranch 2,019,027 2,019,027 6.8% 9.0% $30.67 $27.34 Larkspur 24,915 24,915 0.0% 0.0% - - Lone Tree 2,928,633 2,848,633 7.5% 5.6% $27.95 $27.91 Parker 1,231,088 1,217,529 6.7% 5.3% $24.85 $23.92 Total Douglas County 13,320,948 13,139,144 9.3% 10.0% $25.69 $25.81 Metro Denver 195,241,668 193,678,563 9.0% 9.3% $26.92 $26.54Industrial Castle Rock* 1,068,314 1,037,489 14.5% 7.0% $10.96 $12.02 Highlands Ranch 450,277 105,151 70.8% 0.0% - $18.00 Larkspur 28,019 28,019 0.0% 0.0% - - Lone Tree 36,686 36,686 0.0% 0.0% - - Parker 625,268 625,268 2.1% 1.5% $13.74 $12.65 Total Douglas County 6,648,395 6,208,894 8.0% 3.1% $11.62 $10.96 Metro Denver 226,578,792 220,500,895 4.9% 3.9% $8.28 $7.94Flex Castle Rock* 257,901 232,796 12.7% 2.6% $14.78 $14.56 Highlands Ranch 337,987 337,987 0.0% 0.4% $13.00 $13.00 Larkspur - - - - - - Lone Tree 71,516 71,516 15.5% 31.5% $10.00 $10.93 Parker 205,269 205,269 0.0% 2.5% - $18.00 Total Douglas County 2,670,446 2,645,341 3.2% 3.5% $12.82 $12.36 Metro Denver 47,221,194 46,762,644 5.5% 5.6% $12.62 $11.99Retail Castle Rock* 4,430,331 4,383,798 2.6% 2.7% $23.33 $20.79 Highlands Ranch 3,532,930 3,532,930 1.5% 2.8% $22.64 $21.50 Larkspur 25,203 25,203 0.0% 0.0% - - Lone Tree 3,903,476 3,887,176 0.9% 1.0% $23.60 $27.56 Parker 4,502,049 4,409,817 2.1% 3.6% $19.96 $21.76 Total Douglas County 18,158,379 18,003,314 2.0% 2.5% $20.62 $21.55 Metro Denver 170,564,061 169,618,502 4.6% 3.9% $18.45 $19.12

Note: Vacancy rate and average lease rate are for direct space only (excludes sublet space). Industrial and retail lease rates are triple-net. N/A indicates non-applicable; - indicates no data. *Includes Castle Pines. Source: CoStar Realty Information, Inc.

is currently being leased. Metro Denver re-ported a 1 percentage point increase in va-cancy to 4.9 percent over the year.

The average lease rate for the industrial mar-ket in Douglas County rose 6 percent over the year to $11.62 per square foot in the fourth quarter of 2019. Castle Rock reported the only decrease in the lease rate, falling 8.8 percent to $10.96 per square foot during the period. Parker reported the largest over-the-year increase, rising 8.6 percent to $13.74 per square foot. The industrial lease rate in

Page | 6

Provided by:Douglas County Department of Community Development100 Third St.; Castle Rock, CO 80104303-660-7460; www.douglas.co.us

Prepared by:Development Research Partners, Inc.10184 West Belleview Ave., Ste. 100Littleton, CO 80127303-991-0070; www.developmentresearch.net

Commercial Real Estate continued from pg. 5

Douglas County Commercial Building Permits Issued, 4th Qtr 2019

Jurisdiction Project Description Valuation Total Sq. Ft.

Castle Rock Crystal Valley Retail Lot 1B $1,760,000 10,713Castle Rock Promenade Panda Express $1,200,000 2,300Highlands Ranch 1850 Lucent Ct Addition $444,540 5,990Larkspur Comfort Station C $532,894 --Larkspur Comfort Station D $532,894 --Lone Tree Ridgegate Retail project $1,000,000 6,137Unincorporated South Suburban P&R $32,251,222 207,007Unincorporated Meridian Metro District Maintenance Shop $239,829 3,237Unincorporated Lioness Way Dental $1,149,087 8,371Unincorporated Choke Cherry Clubhouse $426,416 3,230Unincorporated Bear Dance Pro Golf Shop $308,984 4,138Unincorporated Front Range Landscaping $241,003 3,360

Source: Douglas County and individual municipalities.

Douglas County Commercial Certificates of Occupancy Issued, 4th Qtr 2019Jurisdiction Project Description Total Sq. Ft.Castle Rock Castle Rock Industrial Park 8,700Castle Rock Auburn Glen Club House 4,283Castle Rock Canvas Credit Union Meadows 3,600Highlands Ranch ENT Credit Union 5,300Lone Tree Kiddie Academy 11,000Parker SpringHill Suites 66,315Parker Sky Ridge Emergency Clinic 10,800Parker Pine Bluff Clubhouse 7,061Parker Circle K Convenience Store 4,604Parker Circle K Carwash Building 920Unincorporated LaPour Management LLC Building B 169,590Unincorporated Parc Santa Fe Building C 89,633Unincorporated LaPour Management LLC Building A 85,903Unincorporated Indoor sports bubble field 30,000

Source: Douglas County and individual municipalities. *Includes all certificates, except remodels, pools and additions.

Metro Denver increased 4.3 percent over the year to $8.28 per square foot, $3.34 less than the rate in Douglas County.

Flex MarketDouglas County reported 3.2 percent va-cancy for flex space in the fourth quarter of 2019, down 0.3 percentage points from the same time last year. Castle Rock reported the only increase in the vacancy rate during the period, rising 10.1 percentage points to 12.7 percent vacancy. Lone Tree reported the largest decline in vacancy, falling 16 percent-age points to 15.5 percent over the year, fol-lowed by Parker (-2.5 percentage points) and Highlands Ranch (-0.4 percentage points). Metro Denver reported a vacancy rate of 5.5 percent in the fourth quarter of 2019, down 0.1 percentage points from the same time last year.

The average lease rate in Douglas County rose 3.7 percent to $12.82 per square foot be-tween the fourth quarters of 2018 and 2019. Lone Tree reported the only over-the-year decrease, falling 8.5 percent to $10.00 per square foot. Flex lease rates in Castle Rock increased 1.5 percent to $14.78 per square foot, while lease rates in Highlands Ranch remained stable over the year at $13.00 per square foot. Metro Denver reported a 5.3 percent over-the-year increase in the flex lease rate, rising to $12.62 per square foot in the fourth quarter of 2019.

Retail MarketThe retail vacancy rate in Douglas County was 2 percent in the fourth quarter of 2019, 0.5 percentage points below the level in the fourth quarter of 2018. All submarkets re-ported declines in the retail lease rate, with the largest declines in Parker (-1.5 percent-age points) and Highlands Ranch (-1.3 per-centage points). Retail vacancy in Metro Den-ver rose 0.7 percentage points to 4.6 percent in the fourth quarter of 2019.

The average lease rate in Douglas County fell 4.3 percent over the year to $20.62 per square foot during the fourth quarter of 2019. Castle Rock reported the largest in-crease, rising 12.2 percent over the year to $23.33 per square foot, followed by High-lands Ranch that rose 5.3 percent to $22.64 per square foot. Lone Tree declined the most, falling 14.4 percent, followed by Parker (-8.3 percent). The retail lease rate in Metro Denver fell 3.5 percent to $18.45 per square foot, $2.17 below the level in Douglas County in the fourth quarter of 2019.

Nonresidential Development ActivityDouglas County building officials issued permits for 254,483 square feet of nonresi-dential space valued at approximately $40.1 million during the fourth quarter of 2019. The largest project was a South Suburban Parks and Recreation project that will add 207,007 square feet valued at nearly $32.3 million. Other notable projects were the Crystal Valley retail lot in Castle Rock valued at $1.8 million, the Promenade Panda Express valued at $1.2 million, and the Lioness Way Dental valued at $1.1 million.

Certificates of completion or occupancy were issued for 497,709 square feet of non-residential property, a 12.2 percent decrease in square footage between the fourth quarters of 2018 and 2019.