Overview:
THE CITY AND COUNTY OF DENVER has an estimated population of 727,000. Denver is the 19th most populous city in the US and is the 5th fastest growing city. The Denver MSA has a population of 2.8 million; the market consists of ten Colorado counties: the City and County of Denver, Arapahoe County, Jefferson County, Adams County, Douglas County, the City and County of Broomfield, Elbert County, Park County, Clear Creek County, and Gilpin County.
Much like the rest of the world, Denver is feeling the immediate fallout of the coronavirus pandemic. As of mid-March 2020, unemployment claims have hit 380,000 in the state of Colorado. The Denver market is heavily populated with oil and gas companies which are being negatively impacted by the coronavirus pandemic. Volatile oil prices have hit 18-year lows in March 2020 which is leading to widespread layoffs throughout the sector. Denver’s International Airport is a major profit center in the market and has seen flights reduced by as much as 90% per airline. The airport had previously generated $33 billion for the state of Colorado; recent trends indicate that this number could decline sharply over the next few months.
Some positivity in the Denver market is due to the fact that the market has become very tech oriented over the past decade. Tech employers have been in the forefront of allowing employees to work from home and are more insulated from widespread shutdowns. Tech companies have facilitated the work-from-home transition smoothly. Denver job growth in the technology industry has exceeded the national average by approximately 3% annually over the last 5 years. Tech jobs grew by more than 7% in 2019, one of the highest growth rates in the country. Corporate expansions and relocations by tech companies such as Amazon, Slack, and Conga drove employment gains, choosing to expand in Denver for its robust workforce, quality of life, and cost of doing business.
