presentation title here...source: c&w research, kiplinger, imf • election year 2016 • gdp...
TRANSCRIPT
0Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Economic & Real Estate Update
Presented to The Colorado Leagueof Charter Schools
Bryan FryTJ JohnsonTim Callahan
February 25, 2016
1Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Global Effect
Economic Outlook 2016Market Factors
Source: C&W Research, Kiplinger, IMF
• Election Year 2016• GDP growth over all of 2016 will be 2.5%, up slightly from 2.4% in 2015.• Global growth, currently estimated at 3.1 percent in 2015, is projected at 3.4
percent in 2016 and 3.6 percent in 2017. The pickup in global activity is projected to be more gradual than in the October 2015 World Economic Outlook (WEO), especially in emerging market and developing economies.
• Risks to the global outlook remain tilted to the downside and relate to ongoing adjustments in the global economy: a generalized slowdown in emerging market economies, China’s rebalancing, lower commodity prices, and the gradual exit from extraordinarily accommodative monetary conditions in the United States. If these key challenges are not successfully managed, global growth could be derailed.
• By the end of 2016, the 10-year Treasury bond rate should be 2.6%, versus 1.9% now, with the 30-year mortgage rate at 4.3%, from 3.8%.
2
Foreign Capital Pouring Into U.S. CREOrigin of Capital
$20
$6$7
$5
$1 $1 $1
$26
$5
$9
$6$5
$1 $1$0
$10
$20
$30
Total Asia Europe Canada Middle East Australia Latin America
2014 2015
Bill
ions
Foreign investment in U.S. CRE up 30%
Total
Source: Real Capital Analytics3
17%
14%
8%
10%
7% 7%6%
5%4% 4% 4% 3% 3% 2% 2% 2% 2% 1%
0% 0%
-1%-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Investors Are Drawn to the U.S. FundamentalsOffice Rent Growth: U.S. Markets vs. Other Cities Around the World
Source: CW Research, Costar 4
5Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Local Economic Drivers
6
Front Range Economic Drivers
Source: Colorado Office of Economic Development & International Trade, CW Research
A few Colorado workforce highlights:
Aerospace: With more than 2,400 employed, there is a 60% higher concentration of aerospace engineers in Colorado than the U.S. as a whole.Defense & Homeland Security: While over the past decade military occupations have decreased nationally, in Colorado, military occupations have increased by nearly 12,500.Energy & Natural Resources: Colorado has nearly a 270% higher concentration of mining and geological engineers than the U.S. as a whole.Financial Services: From 2004 to 2013, those employed as securities, commodities and financial services sales agents increased in Colorado by nearly 43%.
Beverage Industry: High growth sector
7
Front Range Economic DriversPopulation Growth
Source: BLS, CW Research, Metro Denver EDC
Colorado
Year Metro Denver Total % Northern Colorado Total State Total %
2015 3,062,513 9% 616,135 5,443,612 9%
2020 3,325,925 8% 700,700 5,935,920 9%
2025 3,580,052 7% 795,383 6,454,860 8%
2030 3,830,320 6% 891,600 6,970,651 7%
2035 4,061,697 5% 990,482 7,462,182 6%
2040 4,270,888 4% 1,088,928 7,925,230 5%
2045 4,428,009 3% 1,184,755 8,321,179 4%
2050 4,558,437 1,280,435 8,686,850
Metro Denver Northern Colorado
8
Denver- Record Setting Job GrowthDenver-Aurora-Broomfield MSA
Source: BLS, DTZ Research
48 49
-60
-40
-20
0
20
40
60
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Total Nonfarm, 000's
20-Year Avg = 20,000
Record
9
Job Growth by SectorDenver-Aurora-Broomfield: Nonfarm Employment, Q4 2015
43
196
259
55
100
68
247
150
180
0 50 100 150 200 250 300
Information
FederalGovernment
Trans. &Warehouse
Retail Trade
FinancialActivities
Manufacturing
Prof. & Bus.Services
Leisure &Hospitality
Education &Health
Nonfarm Employment-Q4 2015, '000's
Source: BLS, DTZ Research
10
Denver – Recent Employment Trends
1320
1330
1340
1350
1360
1370
1380
1390
1400
1410
Jul 2
014
Aug
201
4Se
p 20
14O
ct 2
014
Nov
201
4D
ec 2
014
Jan
2015
Feb
2015
Mar
201
5A
pr 2
015
May
201
5Ju
n 20
15Ju
l 201
5A
ug 2
015
Sep
2015
Oct
201
5N
ov 2
015
Dec
201
5
Total Nonfarm Employment, 000's
2022242628303234363840424446485052
Y/Y Job Growth, 000's
No Let Up in Denver Continued Growth in 2015
Oil prices began to fall here
36,825 pace in 2015
Source: BLS, DTZ Research
11
Fort Collins –Recent Employment Trends
140142144146148150152154156158160
Jul 2
014
Aug
201
4Se
p 20
14O
ct 2
014
Nov
201
4D
ec 2
014
Jan
2015
Feb
2015
Mar
201
5A
pr 2
015
May
201
5Ju
n 20
15Ju
l 201
5A
ug 2
015
Sep
2015
Oct
201
5N
ov 2
015
Dec
201
5
Total Nonfarm Employment, 000's
0
1
2
3
4
5
6
Y/Y Job Growth, 000's
Oil prices began to fall here
Source: BLS, DTZ Research
12
Colorado Springs CO –Recent Employment Trends
258
260
262
264
266
268
270
Jul 2
014
Aug
201
4Se
p 20
14O
ct 2
014
Nov
201
4D
ec 2
014
Jan
2015
Feb
2015
Mar
201
5A
pr 2
015
May
201
5Ju
n 20
15Ju
l 201
5A
ug 2
015
Sep
2015
Oct
201
5N
ov 2
015
Dec
201
5
Total Nonfarm Employment, 000's
0
1
2
3
4
5
6
7
Y/Y Job Growth, 000's
Oil prices began to fall here
Source: BLS, DTZ Research
13Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Denver’s Stunning Growth TrajectoryTotal Nonfarm Employment
855,000
1.39M
2.11M
0.7
0.9
1.1
1.3
1.5
1.7
1.9
2.1
2.3
1990 2000 2015 2020 2025 2030
Nearly the size of San Francisco Today (2.2 M)
Source: BLS
14Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Economy & EducationKey Concepts
Employment growth- more households, students in some locations.
Technology & Education integration- incubators
Metro Denver development corridors are light rail centric
How does education fit in the live, work, play development model
Will Millennials remain in urban density after children
How does the limited supply of properties and higher real estate prices impact Charter
School growth opportunities
Gentrification impacting housing prices and shifting enrollment
Source: BLS
15Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Demographics
16Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
DemographicsMillennials
33% of all adults by 2020
75% of work force by 2025
$1T in US consumer spending
Colorado developers and employers are
adopting the workplace strategy to meet
their needs
Source: Brookings Institute
17Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
DemographicsMillennials
Source: Goldman Sachs
18Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
DemographicsMillennials
Source: Goldman Sachs
19Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
DemographicsMillennials
Source: Goldman Sachs
20Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
DemographicsMillennials
Source: Goldman Sachs
21Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Colorado Top 15 School DistrictsEnrollment & # Facilities
Source: Goldman Sachs
22Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
DemographicsDPS Strategic Regional Analysis- Spring 2015
Source: Goldman Sachs
Demographic/Capacity gap: compares the number of DPS students today (and forecast in 5 years) to the number of seats available in the region.
23Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
DemographicsDPS Strategic Regional Analysis- Spring 2015
Source: Goldman Sachs
24Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
DemographicsDPS Strategic Regional Analysis- Spring 2015
Source: Goldman Sachs
Gentrification Forecast 2020
25Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Real Estate Overview
26Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Rent Growth: Who’s HotOffice Asking Rents: Q4 2015 over Q4 2014, % Chg.
Source: Cushman & Wakefield Research
12%
8%7% 7% 7% 6%
5% 5% 5% 4%3%
4%
0%
2%
4%
6%
8%
10%
12%
14%
San
Fran
cisc
o
Nas
hvill
e
Cha
rlotte
Mia
mi
New
Yor
k-B
rook
lyn
Min
neap
olis
Den
ver
Tucs
on
Chi
cago
Atla
nta
Ora
nge
Cou
nty
U.S
.
*Statistics based on legacy DTZ data.
27Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
DemographicsFort Collins
158,600 population
Median Age: 29.5
Median HH Income: $53,780
Diversified Employment Base- Technology, Healthcare, Financial Services, Energy,
Education
Attracting Millennials for jobs and lifestyle
Source: BLS
28Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Ft Collins – Commercial Development UpdateHarmony Technology Park
Being developed by MAVDevelopment
• 105 acre site• Planned for Office, Flex, and Retail spaces
• HTP One• Proposed 70,700 SF office building
• 5042 Technology Place• Existing 50,000 SF flex building, only 9,600 SF currently
available for lease.
• Retail center• 36,000 Sf of retail space expected to deliver late 2015.
29Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
DemographicsMetro Denver
3,000,000 Population
Median Age: 36.6
Median HH Income: $56,514
Diversified Employment Base- Technology, Healthcare, Financial Services, Energy
Attracting Millennials for jobs and lifestyle
Source: BLS
30Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Joint Venture between Continuum Partners and CIM Group• $419 million project
• $47.9 million in tax-increment financing from Denver
• 26 acre site• University of Colorado Health Sciences vacated in 2008
• Proposing 900-1,100 apartment units, for-sale housing, 250,000 SF of retail 125,000 SF of office and a 140-room hotel.
• Will demolish all existing structures except for the historic nurses dormitory, five-story bridge and parking structure• Dormitory will be converted to apartments and the bridge
will become the Hotel.
• 1st phase scheduled to open late Summer 2017• 600 apartment units and ground floor retail.
Denver- Commercial Development Update9th & Colorado Blvd. Redevelopment
31Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Denver- Commercial Development UpdateUnion Station
OFFICE• Six Buildings built since 2009 (Five completed
since 2014)
• 697,938 square feet
• Two Buildings under construction
• 148,808 square feet
• One Building planned
• 418,790 square feet
RETAIL
• 149,440 square feet of newly constructed retail since 2012.
• King Soopers, Twelve new restaurants in and around Union Station
• 70,238 square feet under construction
• Whole Foods
• As of now, aware of another 19,429 square feet that is planned.
RESIDENTIAL• Four Buildings built since 2013
• 1,098 units
• Two Buildings under construction
• 740 units
• One Building planned
• 618 units
HOSPITALITY
• Crawford Hotel (opened July 2014)
• 112 Rooms
• Kimpton Hotel (expected to deliver April 2016)
• 200 Rooms
• Hotel Indigo (expected to deliver October 2016)
• 203 Rooms
• Hilton Garden Inn (proposed)
• 200 Rooms
32Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
DemographicsColorado Springs
600,000 population
Median Age 35.2
Median HH Income $55,650
Government –DoD driven employment base
93% High School Graduation Rate- National Average 86%
Source: BLS
33Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Colorado Springs Development
Collection of Four Venues that are expected to attract 1,000,000 new visitors each year, create 300 construction jobs, thousands of new retail jobs and $10 million in additional tax revenues.
UNITED STATES OLYMPIC MUSEUM | City for Champions | January 2018 | SW Downtown Urban Renewal Area
COLORADO SPORTS & EVENTS CENTER | City for Champions | TBD | SW Downtown Urban Renewal Area
SPORTS MEDICINE & PERFORMANCE CENTER | City for Champions | Spring 2017 | N Nevada UCCS Campus
• Museum providing highly interactive “Olympic Experience”, highlighting values, historic moments, outstanding athletes and teams, and collective memories of the Olympic & Paralympic games.
• State-of-the-art theater, gift shop, café, and broadcast studio.
• Outdoor multi-use stadium accommodating soccer, rugby, and lacrosse. • Indoor venue with flexible hard-court configuration. • Pre-Olympic and amateur sporting events (Olympic Time Trials, Qualifiers, Playoffs and World Championship events).
• Will be a nationally renowned destination for elite athlete clinical, testing, and counseling services and related university research and education.
• Will include a handicapped-accessible track and field facility.
CATALYST CAMPUS | O’Neil/Braxton | Summer 2016 | Pikes Peak & Colorado
• Collaborative work and education environment geared toward bolstering local technology, engineering and manufacturing industries.• Private sector companies (primarily DoD in nature) collaborating with public sector entities to spur workforce development, education and
startups to create long-lasting jobs in the community.
34Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Class B Office Market AnalyticsFort Collins-Loveland-Greeley
35Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Class B Office Market AnalyticsBoulder-Longmont
36Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Class B Office Market AnalyticsNorth Metro Denver
37Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Class B Office Market AnalyticsDowntown
38Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Class B Office Market AnalyticsSouth Metro Denver
39Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Class B Office Market AnalyticsColorado Springs
40Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Class B Office Market AnalyticsPueblo
41Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Residential GrowthMetro Denver
42Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
1
2
34
5
6
7
8
9
10
RESIDENTIAL GROWTH AREAS
1. NW Metro
2. Arvada
3. Parker/ Douglas County
4. Castle Rock
5. SW Metro
6. DIA Corridor
7. SE Aurora
8. East Aurora
9. NE Metro
10. Denver
43Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
NORTHWEST METRO
• Avg. Price Pt. for New Home:$548,803
• # of New Units: 356
• Avg. Price Point for Existing Homes: $453,956
**
*ANTHEM
COAL CREEK VILLAGES
FLATIRON MEADOWS
44Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
** *
ARVADA
• Avg. Price Pt. for New Home: $509,355
• # of New Units: 477
• Avg. Price Pt. for Existing Homes: $343,664
**
*CANDELAS
LEYDEN ROCK
WHISPER CREEK
45Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
*** *
PARKER / DOUGLAS COUNTY
• Avg. Price Pt. for New Home: $467,232
• # of New Units: 593
• Avg. Price Pt. for Existing Homes: $378,462
SIERRA RIDGE
RIDGEGATE
MERIDIAN VILLAGE
46Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
*
**
*
CASTLE ROCK
• Avg. Price Pt. for New Home: $459,291
• # of New Units: 595
• Avg. Price Pt. for Existing Homes: $411,824
MEADOWS
TERRAIN
CRYSTAL VALLEY RANCH
47Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
*
**
SOUTHWEST METRO
• Avg. Price Pt. for New Home: $579,428
• # of New Units: 180
• Avg. Price Pt. for Existing Homes: $325,257
SOLTERRA
LYONS RIDGE
48Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
* *
*
DIA CORRIDOR
• Avg. Price Pt. for New Home: $330,783
• # of New Units: 43
• Avg. Price Pt. for Existing Homes: $270,402
GREEN VALLEY RANCH
DENVER CONNECTION
HIGHPOINTE
49Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
*
*
*
SOUTHEAST AURORA
• Avg. Price Pt. for New Home: $454,647
• # of New Units: 581
• Avg. Price Pt. for Existing Homes: $443,790
SOUTHSHORE
INSPIRATION
COPPERLEAF
50Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
** *
*
EAST AURORA
• Avg. Price Pt. for New Home: $368,226
• # of New Units: 91
• Avg. Price Pt. for Existing Homes: $219,270
TRADITIONS
ADONEA
MURPHY CREEK
51Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
**
**
*
NORTHEAST AURORA
• Avg. Price Pt. for New Home: $339,393
• # of New Units: 134
• Avg. Price Pt. for Existing Homes: $285,532
REUNION
BRANTNER
BUFFALO RUN
52Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
*
DENVER
• Avg. Price Pt. for New Home: $552,100
• # of New Units: 318
• Avg. Price Pt. for Existing Homes: $479,056
STAPLETON
BOULEVARD ONE
SLOAN’S LAKE
53Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Demographic Trends
Who is moving here?
Why are they
moving?
What does the
future hold?
54Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
Residential Trends
Branding Within
Communities
Density
Home Prices
55Colorado Charter School Policy & Facility Summit | Cushman & Wakefield
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+1 303 312 4221
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