2020 State of Downtown Denver Report

1 Produced by the Downtown Denver Partnership | downtowndenver.com Table of Contents

Year in Review pg. 03 Rankings pg. 05 Employment pg. 07 Office Market pg. 10 Talent pg. 12 Development & Investment pg. 14 Mobility pg. 16 Residents pg. 18 Retail & Restaurants pg. 20 Public Realm pg. 22 Tourism pg. 24 Benchmarking pg. 26 Impacts of COVID-19 Addendum The State of Downtown Denver: A Vibrant and Resilient Center City This year’s State of Downtown Denver report This year’s State of Downtown Denver offers us tells the story of a thriving downtown. It’s an opportunity to more deeply understand how the story we have been fortunate to be able we move forward and continue to build our city to tell for the last decade, as our city has to be more resilient and more inclusive, and experienced unprecedented, record-breaking how we innovate to build a place for the future. growth year-after-year. It is a reminder of decades of intentionality and building with vision that led to economic To be reporting on numbers that tell a story of strength and vibrancy. It shows us that great economic success amid a worldwide pandemic cities are resilient cities. that has had dramatic economic impact might Letter from Tami Door, seem counterintuitive. Though the numbers And, it is a reminder that this same President and CEO of the in this report are recent, they are from a time intentionality and vision will help us return to Downtown Denver Partnership that for many of us feels so far away. the levels of success outlined in this report. Just as we have been proud to share the In these challenging times, the Downtown stories of our collective success through this Denver Partnership remains deeply committed and other reports in recent years, we remain to building an economically healthy center city. proud to share this report, and we will continue As you read this State of Downtown Denver to take pride in sharing the stories of our city. report, I urge you to remember that just as our Over the course of time, all great cities grow growth and successes are key to our story, so and slow, take on new life and characteristics, are our challenges. As we look back, we will adapting and reacting to myriad factors – see that the course of our city will be shaped some of which can be controlled or guided and by how we all respond, together. others (such a global pandemic) that simply cannot.

3 Produced by the Downtown Denver Partnership | downtowndenver.com

38TH ST Boundary Map

38TH AVE E 37TH AVE

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enter ity Downtown data in this report eihborhood Denver uses the Downtown Boundary Legend: Denver boundary oundary oundary uness otherwise noted. Rankings

Downtown Denver is at the center of a top ranked city and state

Colorado

1ST Highest increase in personal income in 2019

3RD Best state for business

3RD Best state for entrepreneurs and startups

1ST Best state for promoting innovation

1ST Best state for women entrepreneurs

Denver

3RD Hottest job market

5TH Fastest growing city

4TH Most popular city among millennial homebuyers

1ST Most searched location for out-of-state movers

Top City best-positioned to recover from coronavirus 10

Sources ( from top to bottom): U.S. Bureau of Labor Statistics, 24/7 Wall Street, The Motley Fool, Consumer Electronic Show, FitSmallBusiness, The Wall Street Journal, WalletHub, Lending Tree, Apartment List, Moody’s 5 Produced by the Downtown Denver Partnership | downtowndenver.com

Downtown Denver

The vibrant and vital economic hub of the Rocky Mountain region Employment

Employment growth jumps 4.7% downtown

Downtown Denver added 6,563 new jobs last which makes up a third of all downtown employment, year, resulting in record high total employment of a growing high tech sector which has doubled since 145,077. This 4.7% job growth was fueled by a host 2010 and represents 9% of all downtown jobs, and of new company locations and major expansions--13 Oil and Gas which remains an important part of the announcements in total. Key employment growth downtown economy supplying 6.8% of the jobs. sectors include Professional and Business Services,

Employment Growth by Area Downtown Employment Growth Year over Year growth, Q3 2019 145,077 150K 140K 4.7% Downtown Denver 130K 120K 2.6% 110K Metro Denver 100K 90K 2.4% NUMBER OF JOBS 80K Colorado

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1.2% United States

Source: Q3 2019 data, Colorado Department of Labor and Employment, Quarterly Census of Employment and Wages

7 Produced by the Downtown Denver Partnership | downtowndenver.com

Relocations and Expansions

Companies that have announced a headquarters relocation, new office, or expansion in Downtown Denver this past year include:

Bitly Propeller Blitz Robinhood Concord SalesForce Facebook Silicon Valley Bank We chose Denver because it’s a talent hub, Frontdoor Snapdocs filled with diverse and entrepreneurial- Lyft ViewRay spirited people. The culture of Denver aligns PointsBet VF Corp with many of our own operating principles, like empathy, innovation and pragmatism. We’re excited to be a part of the Denver community and to build a team here.” Aaron King, Founder and CEO, Snapdocs Downtown Denver’s Diverse Economy 32%Professional and Business Services – 32% Downtown Denver has enjoyed extraordinary economic growth • Professional and Business Services is by far Downtown Denver’s largest over the past 10+ years that has resulted in unprecedented industry sector, with twice the total employment as the next largest sector, economic diversification. Professional and Business Services, Leisure and Hospitality. This broad category of jobs includes lawyers, a broad category made up of accountants, lawyers, scientific accountants, scientific research, and advertising. researchers and marketing specialists, provides over one third • Over the past two years, almost half of all new downtown jobs are in this of all jobs. Oil and Gas remains a strong component, with nearly sector. 7% of downtown employment. Importantly, high tech jobs have more than doubled since 2010 and now make up about 9% of all • National research shows this sector is expected to be the most resilient to downtown employment. Add to this a mix of hospitality, finance the recession. and retail jobs and it is easy to see the positive impact of this new economic diversification.

7%Oil and Gas - 7%

Downtown Employment by Industry • The Oil and Gas industry remains an important part of the Denver economy, employing nearly 10,000 people and leasing approximately 4.3 million square feet of office in Downtown Denver. • The industry’s share of the economy has declined over the past two decades, with the percentage of downtown employment decreasing from a high of 9.1% in 2014 to 6.8% currently. • Recent turmoil in the industry suggests further office consolidation and employment losses is likely throughout 2020.

High Tech - 9% 32% Professional & Business Services 18% Government • There are over 13,000 high tech jobs in downtown, the share of which has 15% Leisure & Hospitality increased from 5% in 2010 to 9% in 2019. 12% Financial Activities • High tech jobs are found across all industries, specifically in Professional and 7% Natural Resources & Construction Business Services, Financial Activities, and Information. 4% Wholesale & Retail Trade • Innovation drivers in downtown include: The Commons on Champa , Denver 4% Information Startup Week, United States Patent and Trademark Office Rocky Mountain 8% Other Regional Office, and nearly 50,000 college and university students on the Auraria Campus. Source: Q3 2019 data, Colorado Department of Labor and Employment, Quarterly Census of Employment and Wages 9 Produced by the Downtown Denver Partnership | downtowndenver.com Office Market

Over $1.3B invested in the office market

Driven by demand for space from existing companies 2 million square feet; however, according to CoStar, expanding (e.g. 2U, KPMG, Salesforce) and new net absorption in 2020 is projected to be negative companies moving to the market (e.g. Checkr), for the first time since 2016. The office investment the downtown office market remained strong with market reflected the strong performance, as existing stable average lease rates ($35.32 per square foot) players doubled down on their investments and new and vacancy rates (10.3%). A positive 400,000 ones entered the market for a total of $1.3B in office square feet was absorbed in 2019, bringing the investments. total absorption in 2018 and 2019 to nearly

Absorption and 2MM Deliveries 1.5MM Source: CoStar 1MM 500K 0 -500K

-1MM (Projected)

2014 2015 2016 2017 2018 2019 2020 proected

Net Absorption SF Total Deliveries

Office Market Direct Vacancy Rates Direct Average Lease Rates (per sf) 14% $35 Fundamentals 13% $33 $31 12% Source: CoStar $29 11% $27 10% $25 9% $23 $21 8% $19 7% $17 6% $15 Q1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Top 10 Office-Space Leases

1 Wells Fargo 6 KPMG Address: 1700 Lincoln St Address: 1225 17th Street 8 sf: 245,000 sf: 70,000

Whiting Petroleum Corporation Salesforce 3 2 7 Address: 1560 Broadway Address: 1225 17th Street sf: 165,000 sf: 64,097

7 6 Checkr 8 Education First 10 3 10 4 1 Address: 1621 18th St Address: 2375 15th Street sf: 92,000 sf: 60,000 9 9 2 3 4 2U 9 Ibotta Address: 1200 17th St Address: 1801 California Street sf: 91,500 sf: 60,000 7 1 5 5 6 5 Noble Energy 10 JP Morgan Chase 4 Address: 1625 broadway Address: 1601 Market St 2 sf: 81,547 sf: 56,791

8 Top 10 Office Buildings Sales

1200 17th St 6 1700 Broadway 1 Beacon Capital Partners, Ivanhoé Beacon Capital Partners Cambridge $78,000,000 $400,000,000 7 1801 Broadway We see Denver as an ideal real 2 717 17th St Novel Coworking Brookfield Properties $40,200,000 estate market to invest in. It’s a $205,000,000 8 1200 Lincoln St strategic location for domestic and 3 707 17th St The Nichols Partnership Inc Brookfield Properties $15,250,000 international business, popular $195,000,000 9 1614 15th St 4 1560 Broadway Urban Villages with millennials and supportive Rising Realty Partners $10,040,000 $143,000,000 of a growing economy.” 10 1740 Broadway 5 410 17th St Beacon Capital Partners Rialto Holdings, LLC $7,150,000 Christopher Rising, CEO, Rising Realty Partners $127,250,000 Source: CoStar and JLL 11 Produced by the Downtown Denver Partnership | downtowndenver.com Talent

Fast-growing region with 1.7 million workforce

All roads--and trains and bus routes and bike lanes- Over the past five years, Metro Denver’s labor force has grown by -lead to Downtown Denver, as the center city is the almost 200,000 people. A recent analysis of U.S. Census data by hub of one of the nation’s most highly educated CityLab found that Denver has had the fifth highest growth in the workforces. Topflight talent continues to call the share of college-educated adults of any city in the country and Denver region home, with a fast-growing workforce the eighth highest share of adults with advanced post-graduate that is now 1.7 million people strong. The region degrees. produces great talent each year, thanks to the 11 The Denver Metro Area’s unemployment rate was at a historic low four-year colleges and universities educating over of 2.3% at the end of 2019. As of March 2020, the unemployment 160,000 students annually. rate has risen to 4.6% as a result of the economic recession.

Metro Denver Labor Force and Unemployment Rate

10.00% 1,700,000 The breadth of highly- 9.00% 1,650,000 skilled and diverse 8.00% 1,600,000 7.00% 1,550,000 6.00% talent in Denver across 1,500,000 5.00% 1,450,000 both the [ finance and 4.00% technology industries] 3.00% 1,400,000 2.00% 1,350,000 make the city a natural 1.00% 1,300,000 fit for Robinhood.” 0.00% 1,250,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Gretchen Howard, COO, Robinhood Total labor force, March 2020 Unemployment rate, March 2020

Source: Bureau of Labor Statistics 2

FORT Enrollment in Four-Year Colleges and Universities 7 COLLINS GREELEY 1 University of 5 University of Colorado 9 Christian University Colorado Boulder Colorado Springs Lakewood, Colorado Boulder, Colorado Colorado Springs, Colorado 7,625 35,967 12,180 School of Mines 1 10 Golden, Colorado BOULDER 2 Colorado State 6 University of Denver University Denver, Colorado 6,263 Fort Collins, Colorado 11,952 8 29,429 11 University of Colorado 3,4 7 University of Anschutz Medical 10 9 GOLDEN 6 DENVER 3 Metropolitan Northern Colorado Campus State University Greeley, Colorado Aurora, Colorado Denver, Colorado 9,760 4,000 19,444 8 Regis University 12 Colorado College 4 University of Denver, Colorado Colorado Springs, Colorado Colorado Denver 7,907 2,114 Denver, Colorado 14,947

Number of Students Enrolled Source: Metro Denver EDC COLORADO 5 SPRINGS 12 13 Produced by the Downtown Denver Partnership | downtowndenver.com Development & Investment

26 projects under construction or planned

Over the last 10 years, Downtown Denver has experienced a historic development cycle, adding over 4 million square feet of office space, over 10,000 residential Denver is a vibrant and thriving units, and over 3,500 hotel rooms. Investors continue to see the Downtown Denver opportunity, with 26 development projects under construction or planned city, and the ideal place from - adding 1.5 million square feet of office, 4,500 residential units and 1,000 hotel rooms to downtown in future years. which to continue to grow our business across the west.” Future Public Laura Newman, Golub & Co Sector Investment Major infrastructure and civic projects are poised to lead the next wave of downtown Developments Completed or Underway in Downtown Denver development.

16th Street Mall Reconstruction 14 PR Denver Art Museum North Building Project OJECT S UN DE R C CSU Spur Campus at National Western ON ST RU D C Colorado Convention Center E T ET $1.1 IO L B IN N VES P TM Skyline Park M 1 EN O .4MM T S SQ C QUAR U E FE AR S ET O E T F O FE Larimer Street Bridge T FF ET C N ICE E E SP J M AC T 930 E O S T HOT Protected bike lanes on 18th, 19th & E E E 1 EL 1 R V FE C ,469 R RO N PA ES O 2 P I E S IDE M R E NT S A IC IA P Larimer 3 M F L U F UN R 1 M Q O I 8 F TS S S S O 7 O M IT 7 0 T O N 0 E O U J $ 0 E $ E , F R L 6 0 E L IA R E T 3 C 9 T S 9 7 A N Q U O E 3 T U M Q H D , I A 0 S S M 2 E R 0 7 R E 0 7 P 3 F I 3 , 5 0 E S N E L 5 4 0 Q , 2 T V H 2 U A R O O E E F S T A S E N I O T D L R F E M R E N N F O I T C F E O I E E A E M N

L S E D S P T U T A N

$2.5B C

T E TOTAL INVESTMENT S Denver’s Largest Developments Completed in 2019/2020

Residential – The Coloradan

334 Condominium Units Developer: East West Partners First large condo project in Downtown Denver in a decade

Source: DenverInfill

Hotel – 15th & Stout Dual Brand

382 hotel rooms Developer: Stonebridge Unique combination of Tru by Hilton and Home2 Suites by Hilton brands

Source: Stonebridge Companies

Office – Platte Fifteen 135,000 square feet of office Developer: Crescent Real Estate and Legend Partners First major project to use cross laminated timber in Downtown Denver

Source: Denverinfill Produced by the Downtown Denver Partnership | downtowndenver.com Mobility

Infrastructure helps to double bicycle commuting train to DENVER AIRPORT

There are more mobility options into the network that will add 125 miles of new trains & buses to buses to ARVADA & BOULDER center city than any other location in bicycle infrastructure to Downtown and For the recruitment and retention WESTMINSTER the metro area. Since 2013, the share nearby neighborhoods to make it safer of employees choosing to ride their and more convenient for commuters and of our employees, it’s important to bikes to work has doubled. Currently, residents to get around by bike. In fall 9.2% of downtown commuters bike to 2019, one lane of 15th street and 17th offer multiple commuting options work. And the City continues to make street were converted into bus only lane, investments that support a multimodal improving transit efficiency on two major in and out of our headquarter DENVER UNION transportation system in and around downtown corridors. Finally, the G-line STATION Downtown Denver. In 2019, the city from Wheatridge to downtown opened in offices in the heart of downtown.” began a rapid expansion of the bike April 2019. Tom Pitstick, CMO, Gates Corporation

bus to train & bus to How Downtown Denver employees commute to work Downtown Denver Bicycle Mode Share GOLDEN AURORA

CIVIC CENTER Transit Drove Alone Bicycled STATION 43.3% 32.8% 9.2% 4.3% 9.2% 2012 2019 Legend Walked Carpooled Teleworked eiona ie onnections trains & buses to 5.4% 4.0% 3.1% ihreuency us outes LITTLETON Passener ai ines & LONE TREE ree aide and ree etroide

Moped/Scooter Motorcycle Lyft/Uber/Taxi Vanpooled 1.2% 1.0% 0.1% Downtown’s Regionally Connected Mobility System

train to *Needs to be updatedDENVER AIRPORT

trains & buses to buses to ARVADA & BOULDER WESTMINSTER

DENVER UNION STATION

bus to train & bus to GOLDEN AURORA

CIVIC CENTER STATION

Legend

eiona ie onnections trains & buses to ihreuency us outes LITTLETON Passener ai ines & LONE TREE ree aide and ree etroide

17 Produced by the Downtown Denver Partnership | downtowndenver.com Residents

Third fastest growing downtown in the US this decade

Population growth continues in Denver, and this population growth and is projected to Multi-Family Market more and more of these new residents are continue growing at a faster rate than the choosing to live downtown and in center City and State as a whole. Downtown Center city neighborhoods. The most recent The multifamily market has been strong in Denver City census estimates put the City of Denver at recent years, with significant new deliveries, 18,124 41,138 727,211 total residents, a net increase of positive absorption, and steady rent growth Total Inventory (units) almost 11,000 over the previous year. With reflective of population growth. Denver is Overall Vacancy 12.7% 9.4% this increase, about 60% came from net starting to see a slight softening of this Stabilized Vacancy 7.3% 5.9% migration and 40% from natural increase. market in the downtown boundary and Avg Rent - Studio $1,235 $1,246 This continues a decade long trend of expects to see flat or negative rent growth Avg Rent - 1 Bed $1,680 $1,528 sustained population growth – with Denver and increased vacancy through the end of Avg Rent - 2 Bed $2,498 $2,169 adding over 120,000 residents since 2010. 2020, according to CoStar projections. Our center city has benefited greatly from 2020 Estimated Deliveries 492 1,267 2020 Estimated Absorption 286 246 2019 Deliveries 2,365 2,959 2019 Absorption 1,395 2,126

Source: Costar. Rents shown are effective rents Downtown & Center City Population Growth

Downtown Center City Denver Resident Resident Demographics Demographics

Total Population 27,012 92,502 Total Households 17,151 53,662 Average Household Size 1.46 1.65

White 82% 74% Black 5% 8% American Indian 1% 1% Asian 5% 4% 2010 2019 2024 (Projected) Pacific Islander 0% 0% Source: Esri Business Analyst Some Other Race 3% 9% Two or More Races City of Denver’s Growing Population 4% 5%

750,000 727,211 20,000 Hispanic Origin (Any Race) 12% 24% 18,000 700,000 16,000 Median Age 650,000 14,000 34.2 33.5 10,946 Male 54% 54% 600,000 12,000 10,000 Female 46% 46% 550,000 8,000 6,000 500,000 Bachelor’s Degree or Higher 4,000 73% 62% 450,000 2,000 Median Household Income $95,474 $69,192 400,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Total population Net population change Source: Esri Business Analyst

Source: US Census

19 Produced by the Downtown Denver Partnership | downtowndenver.com Retail & Restaurants

Retail sales up 8.2% in 2019

Retail sales, measured by retail sales tax collections, remained percent. Downtown vacancy rates are still a full percentage strong heading into 2020. Retail sales were 8.2 percent point less than the Metro Denver vacancy rate of 4.5 percent. higher in 2019 compared to the prior year, the largest annual Much like their peers across the city, country, and worldwide, increase since 2014. Retail direct average lease rates were Downtown Denver’s restaurants and retailers will face at $29.63 per square foot in Q1 2020, up 8.1 percent year significant challenges resulting from the COVID-19 crisis that over year and were significantly higher than the Metro Denver is not reflected in these numbers. However, the success of average of $18.26. Vacancy rates were also up slightly, rising 2019 and recent years provide hope for a successful long term 0.8 percentage points year-over-year in Q1 2020 to 3.5 recovery of the retail sector.

Average Daily Pedestrian Traffic on 16th Street Mall

RetailRetail Sales Sales Tax TaxCollections Collections

$70,000,000 $62,230,582

$60,000,000 36,484

$50,000,000

$40,000,000

$30,000,000

$20,000,000 Annual Labor Force Growth Annual Labor Force $10,000,000

2011 2012 2013 2014 2015 2016 2017 2018 2019

* Source: City and County of Denver, Office of the Controller

Source: City and County of Denver, Ofﬁce of the Controller

* Source: DDP Downtown Retail Customers Top two categories of customers, asked of a sample of downtown retailers 70% 60% 50% 40% 30% 20% 10% 0 Restaurant Retail Service Overall

Downtown employees Visitors from Colorado

Visitors from out of state Downtown Residents

Source: DDP 2019 Downtown Denver Retail and Restaurant Survey

The Downtown Denver Partnership surveyed over 100 retail and restaurant businesses. Key highlights include the following:

Over 80% of businesses said sales are Key Retail Announcements & Openings: growing or stable • Ace Hardware • Choice Market Busiest three months: • Fjallraven • Heydey Boutique • June, July August (restaurants) • Platte Street Mercantile • July, November, December (retailers) • Royal Robins • Urban Putt Busiest three days:

• Thursday, Friday, Saturday (restaurants) • Monday, Friday, Saturday (retailers)

21 Produced by the Downtown Denver Partnership | downtowndenver.com Public Realm

Great public spaces create quality experiences

The public realm is where we get our first impressions of a city, Denver offers our residents, visitors, and employees over 150 acres where we experience social and economic interactions taking place of parks and open space as well as unique public spaces like the between everyone on the street. From kayakers testing their river- 16th Street Mall. Future investments in public amenities, such as boating skills in Confluence Park, to co-workers grabbing a beer the Urban Forest Initiative and the 5280 Trail, are sure to create for happy hour in Skyline Park, our public spaces Downtown offer a even more outstanding and inclusive public offerings in wide variety of experiences to everyone. Public space in Downtown Downtown Denver.

16th St Mall Urban Forest 5280 Trail Bannock Street Expanding space for Initiative safe recovery The 16th Street Mall Work has begun on Final design is underway One block of Bannock Dining al fresco takes reconstruction project the first 142 trees on the 21st Street Street in front of the City advantage of Denver’s completed its Federal of the Urban Forest section of the 5280 and County Building is weather to provide Review process passing Initiative that will add Trail. This iconic 5.280- being transformed from a safe return to of a major milestone and over 40,000 square mile trail will transform an underutilized roadway the restaurant dining setting the stage to feet of tree canopy the way we use public into a versatile, year- experience. Through an start construction in downtown. This $7.5 spaces, creating more round public gathering Executive Order of the 2021. The new design million-dollar investment than five miles of urban and event space. Mayor, Denver is allowing will add more usable over five years will trails and linear parks select street closures public space along build the infrastructure through the heart of and expanded patio the pedestrian and for 500 street trees Denver. cafes to accommodate transit street for more downtown and add over expanded restaurant and opportunities to enjoy 150,000 square feet retail services. the outdoors. of tree canopy cover at completion, providing natural shade and greenery to our sidewalks and public spaces. *Needs to be updated

23 Produced by the Downtown Denver Partnership | downtowndenver.com Tourism

Record-breaking year halted by the pandemic

Tourism is one of Denver’s top industries and Visit Denver, the city’s official marketing arm for leisure tourism and conventions, economic drivers, accounting for more than 60,000 remains optimistic for a strong return to travel in the future, and is working hard jobs in the metro area. And while Downtown Denver to promote Denver’s ability to deliver safe, enjoyable visits and meetings that will tourism enjoyed one of its most successful years ever help restore this critical source of economic impact. in 2019, the industry has been disproportionately hard-hit by the COVID-19 pandemic. The closure of Denver continues to generate strong tourism numbers, with 17.3 million restaurants, museums and attractions, coupled with overnight visitors who spent $5.6 billion in 2018, results that were on par with mass cancellation of concerts, festivals and events, 2017. Day visitors to Denver spent an additional $919 million for total spending means that nearly all of Denver’s demand drivers of nearly $6.5 billion. Since 2006, Denver has seen a 64% growth in leisure have been silenced. This has been paralleled in the visits, versus 24% nationally (Source: Longwoods International Research). On the meetings and conventions segment, which normally convention front, in 2019, Denver attracted nearly 400,000 meeting attendees accounts for nearly $800 million in annual visitor who spent nearly $780 million, including 80 groups that used the Colorado spending, and has similarly ground to a halt. Convention Center.

Denver International Airport Monthly Passenger Traffic (Originating and departing passengers only, does not include connecting passengers)

5,000,000

4,500,000 2019 was a record year for DEN with 4,000,000 a total of 69,015,703 passengers travelling through the airport, a 7% 3,500,000 increase in total passengers from 3,000,000 2018. Nearly every day in the summer 2,500,000 of 2019 a new passenger record was set. Notably, international passenger 2,000,000 traffic increased by 7.6% over 2018, 1,500,000 serving an all-time high of nearly 3.2 million passengers. As the graph shows, 1,000,000 passenger traffic at DEN plummeted during the COVID-19 crisis.”

Jul-16 Jul-17 Jul-18 Jul-19 Jan-16Mar-16May-16 Sep-16Nov-16Jan-17Mar-17May-17 Sep-17Nov-17Jan-18Mar-18May-18 Sep-18Nov-18Jan-19Mar-19May-19 Sep-19Nov-19Jan-20Mar-20 Revenue Per Available Room

$148.29

Average Daily Room Rate

$200 $187.09

$180

$160

$140

$120 2014 2015 2016 2017 2018 2019 Hotel Occupancy

85%

79.3% 80%

75%

70%

65% 2014 2015 2016 2017 2018 2019

Source: Rocky Mountain Lodging Report Downtown Denver hotel submarket 25 Produced by the Downtown Denver Partnership | downtowndenver.com Benchmarking

Measuring up among our peer cities

In addition to understanding how Denver is growing over time, to keep improving, of growth and inclusion metrics, only “a handful of very large metro areas— Denver must consistently measure up against our peer and aspirational markets. including Denver, San Antonio, and Raleigh, N.C.—bucked the trend by achieving How does Denver stack up against some of the best markets in the country? strong progress across all five Metro Monitor dimensions from 2008 to 2018.” This past year, we have seen Denver rise as a place for starting and growing a Looking at both the overall poverty rate and the racial gap in poverty rates, business, while at the same time being one of the few metro areas to achieve Denver made more positive progress than any of its peer or aspirational cities inclusive growth. As Brookings Institution noted in their March 2020 release over the past decade.

Key Performance Indicators Among 15 Selected Metro Areas

Job Growth Gross Metro Product Young Firm Growth Productivty Growth Change in Jobs Change in GMP Change in jobs at young firms Change in output per job 2008 - 2018 2008 - 2018 2008 - 2018 2008 - 2018 Source: Brookings Institution Source: Brookings Institution Source: Brookings Institution Source: Brookings Institution

1. Austin 33% 1. Austin 52% 1. Austin 35% 1. Seattle 22% 2. Nashville 22% 2. San Francisco 43% 2. Chicago 18% 2. San Francisco 21% 3. Dallas 20% 3. Seattle 42% 3. Denver 12% 3. Austin 14% 4. Denver 20% 4. Nashville 37% 4. San Francisco 10% 4. Nashville 12% 5. Salt Lake City 19% 5. Denver 32% 5. New York City 4% 5. Denver 10% 6. San Francisco 18% 6. Dallas 29% 6. Dallas 2% 6. Los Angeles 10% 7. Seattle 16% 7. Salt Lake City 28% 7. Portland -2% 7. New York City 10% 8. Portland 16% 8. Atlanta 25% 8. Minneapolis -3% 8. Atlanta 10% 9. Atlanta 14% 9. Portland 24% 9. Washington DC -10% 9. Washington DC 8% 10. Phoenix 13% 10. New York City 21% 10. Salt Lake City -12% 10. Salt Lake City 8% 11. New York City 10% 11. Los Angeles 18% 11. Seattle -13% 11. Portland 8% 12. Minneapolis 10% 12. Minneapolis 18% 12. Atlanta -15% 12. Chicago 8% 13. Washington DC 8% 13. Washington DC 17% 13. Phoenix -17% 13. Dallas 8% 14. Los Angeles 7% 14. Phoenix 16% 14. Los Angeles -25% 14. Minneapolis 7% 15. Chicago 4% 15. Chicago 12% 15. Nashville No Data 15. Phoenix 3% Wage Growth Decline in Change in Racial Metro Population Growth Change in average annual wage Poverty Rate Poverty Rate Gap Metro Population Growth 2008 - 2018 Change in relative poverty rate Change in white/people of color relative poverty 2000 - 2018 Source: Brookings Institution Source: Brookings Institution 2010 - 2018 rate gap, 2008 - 2018 Source: Brookings Institution Source: Brookings Institution 1. San Francisco 29% 1. Denver -5% 1. Denver -5% 1. Austin 106% 2. Seattle 28% 2. Minneapolis -3% 2. Austin -4% 2. Phoenix 89% 3. Portland 15% 3. Chicago -3% 3. Nashville -3% 3. Atlanta 72% 4. Austin 15% 4. Portland -2% 4. Atlanta -2% 4. Dallas 60% 5. Salt Lake City 13% 5. Atlanta -2% 5. Portland -2% 5. Denver 54% 6. Nashville 11% 6. Los Angeles -1% 6. Seattle -1% 6. Nashville 52% 7. Denver 11% 7. Seattle -1% 7. Minneapolis -1% 7. Portland 46% 8. Los Angeles 9% 8. Salt Lake City -1% 8. Phoenix 0% 8. Salt Lake City 45% 9. Atlanta 9% 9. Nashville -1% 9. Chicago 0% 9. Washington DC 35% 10. Dallas 8% 10. Austin -1% 10. Los Angeles 0% 10. Seattle 34% 11. Minneapolis 8% 11. Phoenix 0% 11. Dallas 1% 11. Minneapolis 29% 12. Washington DC 7% 12. Washington DC 0% 12. Salt Lake City 1% 12. San Francisco 17% 13. Chicago 6% 13. Dallas 1% 13. San Francisco 2% 13. Chicago 15% 14. Phoenix 6% 14. San Francisco 1% 14. New York City 2% 14. Los Angeles 14% 15. New York City 3% 15. New York City 1% 15. Washington DC 3% 15. New York City 12%

Downtown Population Least Traffic Congestion Office Rent Apartment Rent Growth Annual Hours Lost in Congestion Direct Asking Rent psf, Q1 2020 Average price for a 1 bedroom apartment, Downtown Population Growth Source: INRIX Source: JLL April 2020 2000 - 2018 Source: Apartment List Source: Brookings Institution 1. Chicago 155% 1. Salt Lake City 9 1. San Francisco $92.07 1. San Francisco $2,463 2. Denver 151% 2. Nashville 34 2. New York City $84.82 2. New York City $2,148 3. Seattle 70% 3. Phoenix 35 3. Washington DC $59.12 3. Washington DC $1,368 4. Dallas 67% 4. Minneapolis 52 4. Austin $51.23 4. Los Angeles $1,368 5. Minneapolis 65% 5. Dallas 63 5. Seattle $45.19 5. Seattle $1,359 6. Washington DC 52% 6. Denver 63 6. Los Angeles $45.12 6. Austin $1,191 7. Los Angeles 46% 7. Austin 69 7. Chicago $45.08 7. Portland $1,123 8. Nashville 46% 8. Seattle 74 8. Portland $34.08 8. Chicago $1,098 9. Portland 38% 9. Atlanta 82 9. Nashville $33.51 9. Denver $1,071 10. San Francisco 25% 10. Portland 89 10. Denver $31.78 10. Atlanta $1,034 11. Austin 24% 11. San Francisco 97 11. Atlanta $30.50 11. Nashville $952 12. Salt Lake City 23% 12. Los Angeles 103 12. Minneapolis $29.45 12. Dallas $916 13. Atlanta 22% 13. Washington DC 124 13. Dallas $28.98 13. Minneapolis $915 14. New York City 6% 14. New York City 140 14. Phoenix $28.28 14. Phoenix $887 15. Phoenix -6% 15. Chicago 145 15. Salt Lake City $24.86 15. Salt Lake City $879

27 Produced by the Downtown Denver Partnership | downtowndenver.com

DOWNTOWN DENVER PARTNERSHIP MANAGEMENT GROUP DOWNTOWN DENVER BUSINESS IMPROVEMENT DISTRICT BOARD OF DIRECTORS 2019-2020 BOARD OF DIRECTORS 2020

Trinidad Rodriguez, D.A. Davidson & Co., Chair Bahman Shafa, Focus Property Group, Chair Austin Kane, Unico Properties LLC * Indicates Downtown Denver Partnership Management Group Board Officer David Kaufman, 910 Associates, Inc. Sandrena B. Robinson, LBA Realty DENVER CIVIC VENTURES BOARD OF DIRECTORS 2019-2020 Ron Fano, Spencer Fane LLC Jon Buerge, Urban Villages Inc. Gina Guarascio, JLL Board Officers Jennifer L. Hallinan DeLeon,

Donna Blair, Continuum Partners LLC Traci Lounsbury*, elements DOWNTOWN DENVER INC. BOARD OF DIRECTORS 2019-2020 Brianna Borin, Snooze an A.M. Eatery Dana Mack, Olsson Sarah Brown*, Semple Brown Design, P.C. Scott Martinez, Martinez & Associates Jon Buerge, Urban Villages Rob McColgan, Modern Restaurant Concepts Board Officers Chris Crosby*, The Nichols Partnership, Inc. Pat McHenry, City Street Investors LLC Rhys Duggan, Revesco Properties Erik Mitisek, highwing Michael Bearup, KPMG LLP Peter Lauener, McWhinney Brent Farber, Elevation Development Group, LLC Blair Nelson, 9NEWS Albus Brooks, Milender White Tom Lee*, Newmark Knight Frank Greg Feasel, Colorado Rockies Baseball Club Cindy Parsons, Comcast Jay Despard, Hines Nathan Lohmeyer, DaVita Chris Frampton, East West Partners Sarah Rockwell, Kaplan Kirsch Rockwell LLP, Chair Erik Carlson, DISH Lee Mayer, Havenly Everette Freeman, Community College of Denver Adam Sands, FirstBank Brian Chen, Beacon Capital Partners Matt Most, Ovintiv Jon Gambrill, Gensler Gloria Schoch, VF Corporation Jamie Cohen, HomeAdvisor Raju Patel, Bank of America Arjita Ghosh, Quizlet Bijal Shah, Guild Education Janine Davidson, Metropolitan State University of Denver Tom Pitstick, Gates Corporation Beth Gruitch, Rioja Mark Sidell, Gart Properties Lori Davis, Grant Thornton* Kevin Quinn*, Citywide Banks Ismael Guerrero*, Mercy Housing David Sternberg, Brookfield Andrew Feinstein, EXDO Development Scott Reid, Bluprint Amy Hansen*, Polsinelli Mark Stiebeling, Grand Hyatt Denver Dorit Fischer Makovsky*, NAI Shames Makovsky Gary Reiff, UC Health Katie Kramer, Boettcher Foundation Rick Tucker, Hensel Phelps John Freyer Jr., Land Title Guarantee Company Maja Rosenquist*, Mortenson Greg Leonard, Hyatt Regency Denver at Colorado Lindsay Whetton, TIAA Anita Graham, VF Corporation Elizabeth Salomon, Xactly Corporation Convention Center Ellen Winkler, INDUSTRY Denver Michael Hobbs, Independent Financial Peter Schippits, CBRE Jim Holder, Holmes Murphy Christopher Shears, Shears Adkins Rockmore Architects, LLC Kathy Holmes, Holmes Consulting Group Ellen Valde, PriceWaterhouseCoopers LLP Past Chairs Dorothy Horrell, CU Denver Hollie Velasquez Horvath, Xcel Energy Company Bruce James , Brownstein Hyatt Farber Schreck Paul Washington, Jones Lang LaSalle Bruce Alexander, Vectra Bank Colorado Chris Jensen, JPMorgan Chase & Co. Robin Wittenstein, Denver Health Ferd Belz, L.C. Fulenwider, Inc. Steve Katich, J.E. Dunn Hanne Wolf, Liberty Global Gene Commander, Gene Commander Inc Kevin Kelley*, Husch Blackwell LLP Gary Yamashita, Sakura Square LLC Patty Fontneau, Benefit Exchangr & Tech Solutions, CIGNA Kim Kucera, CRL Associates, Inc. Mike Zoellner*, ZF Capital, Chair Jerry Glick, Columbia Group LLLP Rus Heise, Heise Investments Don Hunt, The Antero Company Past Chairs Bill Mosher, Tramell Crow Company Jim Basey, Citywide Banks Trinidad Rodriguez*, D.A. Davidson & Co. Brad Buchanan, National Western Center Authority Joe Vostrejs, City Street Investors LLC Stephen Clark, Clark Companies Elbra Wedgeworth, Denver Health Rob Cohen, The IMA Financial Group, Inc. Dana Crawford, Urban Neighborhoods, Inc. Cole Finegan, Hogan Lovells US LLP Bob Flynn, Crestone Partners, LLC Tom Grimshaw, Spencer Fane LLP Walter Isenberg, Sage Hospitality David Wollard Gail Klapper, The Colorado Forum Kim Koehn, K2 Ventures David Kenney, The Kenny Group John Moye, Moye White George Thron, Mile High Development, LLC For More Information, Contact:

Randy Thelen Senior Vice President, Economic Development 303.825.6791 [email protected] Emily Brett Senior Manager, Economic Development 303.571.8216 [email protected]

Guided by the 2007 Downtown Area Plan, the 20-year plan for Downtown Denver, the Downtown Denver Partnership is leading a place-based economic development strategy to build one of the most vibrant center cities in the country. We work with businesses and investors already participating in the Downtown Denver market, as well as external parties exploring the opportunity, and provide personalized support, including:

• Customized research reports • Strategic planning • Site selection assistance • Innovation and entrepreneurship programming • Project support

29 Produced by the Downtown Denver Partnership | downtowndenver.com

/DowntownDen @downtowndenver /downtown-denver-partnership @DowntownDenver

1515 Arapahoe St. Tower 3, Suite 100 Denver, CO 80202 303.534.6161 downtowndenver.com State of Downtown Denver 2020 Addendum COVID-19 Response and Recovery

Published: May 27th, 2020

The 2020 State of Downtown Denver was published in May 2020 in the midst of the COVID- 19 pandemic and subsequent economic recession. At the time of publishing, much of the economic data typically used to measure the economic health of Downtown Denver (eg total employment, wages, retail sales) do not yet reflect the impact of the pandemic-induced recession. Throughout the State of Downtown Denver report, we have taken measures to provide consistent, reliable, and timely information. Wherever possible, we have provided the latest data points available. However, this does not tell the full story of the impact on downtown since the pandemic hit – or a full understanding of what’s to come.

Before the COVID-19 crisis, the data shows that Downtown Denver was performing exceptionally well, enjoying record employment, record population, record retail sales, and record tourism. These strong results position us well to withstand the recession, similar to how the Denver region was among the first to recover from the Great Recession. In fact, Moody’s recently ranked Denver among the Top 10 US cities best positioned to recover. As we begin to recover, the Downtown Denver Partnership is committed to rebuilding our economy, to keeping people safe and healthy, and doing so while building a stronger and more inclusive community.

In the coming months, the Downtown Denver Partnership will release economic updates that reflect the impacts of the current recession as we receive new data. In the meantime, this Addendum is offered to provide an early look at the impacts of the pandemic on Downtown Denver and how we are responding. Many data points included in this Addendum refer to the City and County of Denver, the Denver Metro area, or the State of Colorado, not downtown specifically, as reliable and timely data for downtown is not as readily available at this time. Stay closely engaged with the Downtown Denver Partnership for the latest data and analysis as we move through various phases of recovery.

Metric: Pedestrian Activity on the 16th Street Mall Geography: Downtown Denver Timeframe: February 1 2020 – May 25 2020 Source: IKE automatic sensors Pre-pandemic, the 16th Street Mall was the busiest pedestrian corridor in the region, with an average of 20,000 pedestrians per block per day. Pedestrian traffic plummeted mid-March and by April traffic was down almost 80% from February levels. In May, pedestrian traffic has begun to pick up some but remains well below normal levels.

Pedestrian Activity Index on 16th Street Mall 45

(sample of total activity) total of (sample 10

5 Relative Index of Pedestrian Activity

Metric: Retail and Restaurant visits Geography: City and County of Denver Timeframe: February 15 2020 – May 16 2020 Source: Google Movement Data Pre-pandemic, retail sales tax collections were up 8.1% year-over-year, with restaurants up over 10%. Restaurants and bars were closed to dine-in service in Denver on March 17 and will be allowed to open with reduced capacity on May 27. Retailers were able to reopen with restrictions beginning on May 9. As of mid-May, Google data shows the retail and recreation category of activity is still down about 50% from baseline but beginning to rebound.

Percent Change from Baseline Visits to Retail and Recreation Places 20

-10

-20

-30

-40

-50

-60

-70

-80

Metric: Restaurant Diners Geography: City and County of Denver Timeframe: February 18 2020 – May 25 2020 Source: OpenTable State of the Industry data Pre-pandemic, the restaurant scene in Denver was thriving. Dinning in at restaurants was prohibited beginning on March 17, so obviously the OpenTable’s seated diners index went to zero. Restaurants will be permitted to begin reduced capacity dine-in service on May 27, so we will watch this index in the coming months.

Year-over-year Seated Diners at Restaurants 60

-20

-40

-60

-80

-100

-120

Metric: Work and Transportation Visits Geography: City and County of Denver Timeframe: February 15 2020 – May 16 2020 Source: Google Movement Data Pre-pandemic, employment was at record levels in Downtown Denver with close to 150,000 workers. And over 43% of these workers chose to commute into Downtown Denver by transit. As offices begin to reopen, Google data shows a slight increase in workers returning to their offices. However, visits to transit stations are still down 63% from baseline.

Percent Change from Baseline Visits to Workplaces and Transit Stations 20

-10

-20

-30

-40

-50

-60

-70

-80

-90

transit_stations workplaces

Metric: Unemployment Rate Geography: Metro Denver, Colorado, and United States Timeframe: January 2019 – March 2020 (Metro Denver)/April 2020 (CO and US) Source: Bureau of Labor Statistics Metro Denver’s unemployment rate was one of the lowest of all metro areas, hitting 2.3% in 2019, more than an entire percentage point lower than the national rate. The April 2020 unemployment rate for Colorado was 11.3% and 14.7% for the nation, both of which are the highest numbers since records have been kept. The April Metro Denver unemployment rate will be released in early June; the March 2020 rate was 4.6%.

Unemployment Rates - Metro Denver, Colorado, and United States

16 14.7 14

12 11.3

6 4.6 4

Unemployment Rate Rate (Percent) Unemployment 2

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2019201920192019201920192019201920192019201920192020202020202020

Metro Denver Colorado United States

Metric: Unemployment Insurance Claims Trend Geography: Colorado Timeframe: January 2008 – May 2020 Source: United States Department of Labor Pre-pandemic, Colorado had consistent unemployment insurance claims of a 1,000 to 2,000 a week. Weekly new claims peaked the week of April 11, 2020 at 104,572, a stunning 45 times the weekly claims a month prior of 2,321. Before the COVID-19 crisis, the previous weekly high had been the week of 1/9/2010 when 7,749 people filed for unemployment in Colorado. These remarkable numbers reflect the unprecedented nature of this crisis. While weekly claims have continued at an extremely high rate, it does appear that unemployment claims have peaked.

Colorado - Weekly Unemployment Insurance Claims 120,000 100,000 80,000 60,000 40,000 20,000 0

Colorado - Weekly Unemployment Insurance Claims - 3/14/20 to current

120,000 104,572 100,000 80,000 61,838 67,639 60,000 46,326 38,662 40,000 28,360 19,774 22,732 20,0002,321 0

*Note: for data continuity purposes, this data does not include gig workers who have been newly eligible for unemployment in this crisis and add another over ~60,000 to the jobless claims over the past three weeks

Metric: Office Market Fundamentals Geography: Downtown Denver Timeframe: January 2015 – May 2020 Source: CoStar Pre-pandemic Downtown Denver’s office market was solid with positive 2 million square feet of absorption in the past two years. As of May 2020, we are starting to see an increase in sublease vacancy as firms place unneeded office space on the market and negative absorption for the year.

Downtown Denver Office Market - Vacancy Rates 14.0% 12.0% 10.6% 10.0% 8.0% 6.0% 4.0% 2.0% 2.5% 0.0%

Direct Vacancy Sublet Vacancy

Downtown Denver Office Market - Net Absorption (sf) 600,000

500,000

400,000

300,000

200,000

100,000

-100,000

-200,000

-300,000

Metric: Apartment Market Fundamentals Geography: Downtown Denver Timeframe: January 2015 – May 2020 Source: CoStar Pre-pandemic Downtown Denver’s apartment market was absorbing new product at a record pace and had shown three straight years of year over year rent growth. While vacancy rates remain stable, the second quarter 2020 is on track to be the first quarter with significant negative rent growth year over year in downtown since 2010. However, year to date absorption remains positive.

Downtown Denver Apartment Market Fundamentals

6% 25%

4% 20%

2% 15%

10%

Rent Y/Y Rent Growth -2%

5% -4% Stabalized Vacancy Overal and

-6% 0%

Rent Growth Y/Y Overall Vacancy Rate Stabalized Vacancy

Metric: Downtown Denver Hotel Market Statistics Geography: Downtown Denver Timeframe: April 2019 and April 2020 Source: Rocky Mountain Lodging Report Pre-pandemic, Downtown Denver’s hotels were enjoying record success as a core of Denver and Colorado’s growing tourism market. As convention, business, and leisure traffic ground to a halt in March, downtown’s hotels were met with unthinkably low occupancy. Many downtown hotels chose to close temporarily, with available room nights dropping by 100,000 from April 2019 to April 2020. The Average Daily Rate of hotel rooms that remained available in April dropped by over $100.

Downtown Denver Hotel Market Fundamentals Available Occupied Average Room Nights Room Nights Occupancy % Daily Rate REVPAR April 2020 147,374 14,014 9.5% $86.81 $8.25 April 2019 252,780 206,741 81.8% $189.06 $154.62

Metric: Development Pipeline Geography: City and County of Denver Timeframe: YTD April 2019 vs YTD April 2020 Source: City and County of Denver While we are still waiting to see the full impact of COVID-19 on development activity in Denver, early data from the City’s Community Planning and Development department suggest we are starting to see a decrease in permitting of new projects. According to CPD “to date in 2020, issued permits have decreased by 11% from 2019 levels and the value of these permits (construction labor plus materials costs) is down 32%. 2019 was a record year for permit valuation, so some decrease in valuations was expected, but these numbers likely also reflect COVID-19.”

Development Permit Data 2020 YTD versus 2019 YTD

-11% permits issued -32% valuation permitted

State of Downtown Denver 2020 Addendum COVID-19 Response and Recovery