First quarter 2023 did not disappoint in terms of talking points….during the last week in March, banks wiped out $45 billion in value from the stock market in two days. The unusual amount of “wellness update” letters from banks had to make us wonder….were the banks not well before?
What we’ve got our eyes on: Inflation, Trump, Ukraine, Russia, China and the Denver Mayor race. Denver impacts Boulder and this election will have carry over effects to Boulder, especially on the challenging and never-ending solution to homelessness. If we want people to get back to offices downtown, homeless needs solutions.
Not So Bright: Boulder County recorded 23 bankruptcy filings in March, up from 19% in March 2022. For the quarter, that number is up about 21% YTD. We do always see some good in this as Boulder is and will be an entrepreneurial mecca, so with that, there also was an increase in new business filings up 28% TTD.
March Madness: No other sporting event in the world exists where you pick mascots and can actually have a chance of winning your office pool! What a crazy hoops month for both men and women.
LinkedIn reports that about 12% of job listings on its platform are remote… That is down 20% from YTD 2022. The office market is still a conundrum and getting people back to the office even part of the week is an ongoing topic. Chatting with various CEO’s, most agree the office is where productivity, socialization, and relationship development occurs. Unfortunately, each company has different answers / needs for problem solving and for Landlords figuring out balance of economics versus flight to quality will be watched closely.
Same sort of topic, but slightly different, Downtown Boulder recently sent out a survey to inquire how some downtown office employees feel about their current work environment… We look forward to what (if any) changes Downtown Boulder suggests to help attract companies back to downtown Boulder.
YES, we still think now is a good time to invest in commercial real estate, here’s why:
- Great way to diversify portfolio from any publicly traded platform
- Third largest asset class behind bonds and cash
- Boulder remains one of the most difficult cities to develop yielding to strong supply/demand ratios
Finishing out on good news, our office closed 200,000 square feet of leasing deals in the first quarter. Boulder County is a great place to live, work, play….more detail next quarter why every company considering Boulder County, should simply ask “Why Not Boulder?”