Construction value

Construction value represents the dollars associated with new construction starts. This metric gives a better representation of construction activity than the number of permits alone. In 2019 there was $3.1 billion in total construction value in Adams and Arapahoe Counties.

Industrial market

The industrial market in the Metro area has remained strong despite the COVID-19 pandemic.  According to Newmark Knight Frank’s Q2 2020 report, net absorption posted the best quarterly results in more than 10 years with 2.2 million square feet bringing the total in 2020 to 2.5 million square feet.  Vacancy is nearly flat at 5.9% versus 5.7% one year ago.  Rental rates remained flat with Q1 and the sector is performing better than others during the pandemic.  Uncertainty about the future is making owners cautious about pushing rates beyond historic highs.

Aurora’s industrial market has driven much of the performance in the Metro area with more than a million square feet under construction.  Our industrial and e-commerce corridor still has plenty of room to grow unlike other areas that are space-limited.  

Key Trends

• Q2 2020 was 34^th consecutive quarter of growth in the market
• Rental rates continue to hold steady
• E-commerce demand and pre-COVID funding keeps the pipeline active
• Continuing interest in owning industrial product keeps $/sf high

Economic indicator – GDP

Gross domestic product has steadily increased in the Metro area, Adams County, and Arapahoe County over the last five years at 4.0%, 4.6%, and 4.0% respectively.  These are nearly double the national GDP 5-year CAGR of 2.4% and indicate the continued strength of the Colorado economy relative to the nation.  

Economic indicator – Colorado visitor spending

Visitors to Colorado in 2019 spent more than $24 billion, significantly adding to the state’s economy. This was up more than $5 billion from five years ago, a compound annual growth rate of 5.2%.

Economic Engines in the City of Aurora

The Anschutz Medical Campus generates a total economic impact of $14 billion annually to the State of Colorado.
Buckley Air Force Base had an economic impact of $1.27 billion in 2020.

UCHealth

Children’s Hospital Colorado

CU Anschutz Medical Campus

Fitzsimons Innovation Community

Buckley Air Force Base