If you’ve been out and about in Boulder lately, you’ve undoubtedly noticed a building boom going on. Commercial buildings are sprouting up, the University of Colorado is in the midst of several large projects and countless residential apartment complexes are in the works. Although it was one of the greatest casualties of the recession, the construction sector in Boulder County and throughout the state of Colorado has been in recovery over the past several years, and it is poised to continue expansion into 2016.
According to 50th Annual Colorado Business Economic Outlook compiled by Business Research Division at the University of Colorado Boulder’s Leeds School of Business, Colorado’s total construction activity, which was reported at just under $12 billion for 2014, is forecasted to increase by 11.5 percent to nearly $13.4 billion in 2015. Infrastructure volumes and residential permit values are expected to rise, and a surge in nonresidential building is predicted.
Infrastructure construction in the Metro Denver area was particularly active in 2014 with the opening of the new Denver Union Station and on-going FasTracks construction. With the Regional Transportation District (RTD) actively working on five new projects projected to open in 2016 – the East Rail Line, Gold Line, the I-225 Rail Line, a portion of the Northwest Rail Line and the US 36 Bus Rapid Transit Line – infrastructure construction will continue at a brisk pace throughout this year and into the next.
Rapid population growth in Colorado has spurred an increased demand for housing. Until pent up demand is met and new units hit the market, new residential construction will remain strong. The 50th Annual Colorado Business Economic Outlook predicts 19,500 single-family permits and 12,500 multifamily permits will be issued in 2015. New multifamily permits are heavily weighted to apartments rather than for-sale condominiums, which is a visible trend in Boulder. Nearly all the multifamily units planned will be added in Colorado’s Front Range. In fact, for the past three years, 97% of multifamily permits issued have been for units located in the corridor from Colorado Springs north to Fort Collins.
The Outlook also predicts that non-residential construction activity – which includes construction of offices, retail, and medical and industrial buildings, as well as institutional buildings such as colleges, churches, schools, and government buildings – will increase 14%, to nearly $4 billion in 2015. The Denver, Boulder and Aurora markets will see the bulk of activity and the medical and office sectors will lead in volume.
It’s an exciting time to be building in Colorado. All of our state’s growth over that past few years has really impacted our business. In 2014, we recorded our strongest performance yet. We were awarded the Mercury 100 from Boulder County Business Report – ranking #6 on the list for companies of $1,000,000 – $1,500,000 in revenue. We completed several exciting projects, including work on Union Station. One of our projects was recently named the “2015 Home of the Year” by Colorado Homes & Lifestyles magazine, and we have multiple high profile projects in Denver, more innovative work in the Federal space, and several initiatives with some of our favorite local breweries in the works. Our staff grew to accommodate this new work and we are now up to 13 employees, up from seven in 2011. If you’re part of the building boom and need structural engineering assistance, don’t hesitate to get in touch. We’d love to help.
