Denver Market Report
Higher-Paying Job Creation Lowers Post-Pandemic Hurdles; Transaction Activity Reflects Positive Outlook
Catalysts for future growth in place. Prior to the health crisis, Denver recorded strong rates of employment growth and net migration that fueled tenant and buyer demand for commercial properties and residential units. While the metro has recorded a spike in daily COVID-19 cases since October, the number of reported cases during the second and third quarters trailed primary coastal markets, allowing businesses to remain open since June with capacity restrictions in place. During this span, professional services firms were able to avoid large-scale layoffs. Tech-related companies in particular exhibited resilience, adding 7,000 positions from July to September. Since, Denver has slipped into a more restrictive reopening tier that limits office capacity at 25 percent. This mandate may slow short-term hiring activity; however, growing tech firms are still likely to bolster payrolls via remote working arrangements. These jobs could eventually translate to office-using positions that fuel future in-migration.