As Andy Williams sang, “It’s the most wonderful time of the year,” I know he was not referring to the transition from Summer to Fall or Q2 to Q3 in Boulder. For me, though, this is ABSOLUTELY the best time of the year in Colorado. We are so fortunate to live in a place with four seasons, and no season rivals the Fall. Not to mention, there’s plenty of good news as we roll into year-end.
The beauty of riding bikes, hiking, and watching football during this season may have sparked a much-needed boost in the commercial real estate market. The drop in interest rates, jobless claims hitting a four-month low, and inflation hovering close to 2% are signs that perhaps this spark has the potential to carry us into 2025. Yes, yes, yes, I know – geopolitical concerns, hurricanes, pending union strikes, and the upcoming presidential election. Of course, these can all impact the economy, but they are not new challenges. My hope is that by 2025, we can settle into a “new normal” that takes into account the global economy we live in, recognizing that our inability to predict every potential negative news item will be a part of our lives forever.
More good news: Colorado’s five largest equity rounds in September pulled in $304 million, doubling August’s total. This included Boulder’s VFN Holdings, Inc., which raised $29 million in September, on top of the $51 million raised in August. This infusion of money has a trickle down positive impact.
For those of us who have been in the business for decades, we remember when the average lease deal was under 5,000 square feet, signaling the heart and soul of our market – smaller startups that we watched grow and grow. This quarter, 36 leases under 5,000 square feet were executed – the largest number in a quarter since pre-COVID. Positive news! Speaking of good signs, CU just announced that for fiscal 2024, they launched 35 spinout companies. Among all universities from 1991-2023, only one has ever produced more than 35 startups in a year! Go CU! Also some upbeat news, our office executed the largest office deal of 2024, totaling 82,000 square feet in Flatiron Park North. Go team DCC! Boulder is like the little engine that could – slow and steady.
I recently read an article referencing a KPMG survey where 1,300 CEOs said they expect a shift back to a five-day workweek in the office by 2027. I’m not sure I buy into that for Boulder County specifically, but even three full days in the office would be a much-needed boost to our restaurant and retail businesses, which rely on that daytime traffic. Personally, I’m a strong believer that being around people in the office is a GREAT thing for both the young and the old. Not to mention, the collaboration, mentorship, and sharing of wins and losses face-to-face are essential for human development.
I hope you find joy in our beautiful outdoors, farm-to-table harvest dinners, caramel apples, dusting off the crockpot, and a visit to Munson’s pumpkin farm. And of course, I’m predicting we’ll have even more to celebrate in Q4!
-Becky Callan Gamble, CEO
