Millennials, E-Commerce, and Denver Real Estate

Millennials, E-Commerce, and Denver Real Estate

Headlines and ratings have Colorado at the top. Denver has been consistently ranked as one of the best cities to live in by U.S. News and World Report. Denver was also first in 2015 and 2016 for best places for business according to Forbes. These accolades are in addition to the state’s impressive roster of colleges and universities, not to mention its luscious landscape and booming retail scene. This all translates into a desirable place to live, which affects your business decisions. A small business attorney will help you with all of your commercial real estate needs from setup to leasing or buying to protecting your assets.

The Millennials Are Coming To Colorado

Colorado has steadily become a migration destination in recent years, and according to a Denver Post article, there is an influx of millennials. Like many groups, millennials like to live in areas where there are other millennials, and this group uses social media to share their day to day experiences. This, in turn, contributes to a momentum of migration, which has a major impact on the real estate market. A Biz Journals article reports that Denver’s retail real estate market is expected to be the “world’s hottest” over the next few years, second only to San Francisco, and that the retail market will outperform all other global retail markets. With all of the positive reports and growth comes competition for space and rising rental rates. If you are renting commercial space for your small business, you may not be able to afford hikes in rent. As a landlord, tenants may be harder to keep or come by. Because the millennials are coming to Colorado in droves, there is a tight real estate market. A tight real estate market means there is more at stake, leading to more potential legal disputes. Careful review of your lease is critical in these times, and a small business attorney can help you with all of your contracts and agreements.

E-Commerce Is Everywhere, Even If Your Business Is Only In Denver

Defined as a transaction of buying or selling online, e-commerce has expanded rapidly over the years and is accelerating. Boundaries between electronic and conventional commerce have become blurred as more and more businesses move at least portions of their operations onto the internet. All businesses employ some form of electronic applications whether through email, online catalogs, e-newsletters, digital coupons, social media marketing, or countless other transactions. Amazon, an e-commerce revolutionary, just opened its first fulfillment center in Aurora, Colorado and is reportedly looking for a downtown Denver office location. While a 452,000 square foot industrial location is not exactly small retail real estate, having big e-commerce and tech companies opening offices in Denver affects all sectors of commercial real estate, employment, and retail. So whether you have a brick and mortar storefront or work from home, a small business attorney can advise you about operating in an increasingly virtual market in conjunction with an increasingly competitive real estate scene.

Owning Or Leasing Retail Space In Colorado

You know Denver is the place for your small retail business. You confidently cater to tech savvy and discerning tastes. You have a solid online presence. So, what do you do if your retail space no longer meets your business needs? What if you cannot afford increasing rent costs? It may be time to find another option or location. If you are unsure of the future of your business and its size, you may be better off continuing to lease or sublease. However, if you want to stay in a particular district or neighborhood and have no plans to expand, then you may want to buy rather than rent. A small business attorney will help you decide whether to rent or buy and guide you through locations and spaces as well as the accompanying leases and contracts.

If you need help with your e-commerce and Denver real estate options, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Small Business Lawyer. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com

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Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney
501 S. Cherry St., Suite 1100
Denver, CO 80264
720-258-6647
Elizabeth.Lewis@eclewis.com

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Keep an Eye on the Economy

It’s always a good idea to keep on eye on the economy – whether you’re a local small business owner, or employed by the State of Colorado. Economic indicators can help you determine a wise household spending plan, as well as guide fiscal decision making for your business. So, how are things looking right now, and what should you be focused on? Colorado based hard money lender Glen Weinberg thinks you should be keeping track of how many times you’ve eaten fast food in the last month. If his measure works, he’s doing better than the Federal Reserve.

According to Weinberg, there is a strong correlation between the general economy and fast food restaurant sales. “Historically, sales at fast food restaurants have a strong correlation with general economy which means as one metric moves the other metric typically moves in tangent.” Fast food sales reflect the availability of discretionary income to consumers. If your business relies on discretionary income, it may be a good idea to keep tabs on fast food sales. In 2015, three of the top five showed declining sales compared to 2014, and the overall, sales for the top five were down.

You may also want to monitor apartment vacancies – if they are low, it generally means that people have a good reason (such as a good jobs) to stick around. But keep in mind, not all vacancy increases are a result of people leaving the area. The current increase in Metro Denver apartment vacancies is not a signal of weakening economy, but a simple matter of supply finally passing demand as large numbers of new units have been added to the housing market here in Colorado. A good way to examine what might be behind increased vacancy rate is to look at rent. If rent is still going up, even though there are more vacancies, there’s a good chance housing is still in high demand. According to Denver Business Journal Reporter, Molly Armbrister, year-over-year fourth quarter average apartment rental rates in Metro Denver increased “…in spite of a jump in the average apartment vacancy rate from 4.6 percent to 6.8 percent in the same period.

If your business is experiencing growing pains in either direction, it may be a good time to talk to an attorney. If you need legal help, be sure to contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Small Business Attorney. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com.

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney
501 S. Cherry St., Suite 1100
Denver, CO 80264
720-258-6647
Elizabeth.Lewis@eclewis.com

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Denver’s Housing Crunch and The Impact on Small Business

News of Denver’s housing crunch isn’t really anything new, as reports of the housing shortage have been in the spotlight for the last few years. What is new is the toll it’s taking on small businesses and the employees that work for them. Current figures estimate Colorado grew by as much as 101,000 residents during the previous 12 months, and with growth like that, jobs and the competition to get them is fierce.

Live, Work, but Where?
With such explosive population numbers, housing becomes a greater concern, as most people prefer to work close to where they live, but as people try to find a place to live, low inventory of properties both for rent and purchase, there are often more people than places to house them. Home-seekers are pushed further and further from the metro in order to locate the housing they need, and this can sometimes drive those same people to chose work that is closer to their new residence. For small businesses, this can spell trouble because the talent they need might now reside too far away to make the drive worth it. This can breed some competition for the employee, and create a type of “wage bidding war”, but not all small businesses are ready for the fight and have to stick close to their compensation budgets to maintain steady footing themselves.

Talent Gap
And speaking of talent, a recent CU-Boulder survey indicated that Colorado businesses overall are concerned about a talent shortage, meaning there appears to be a lack of skilled employees for small businesses to choose from, even though there are a great deal of people entering the state. This means companies will be challenged to do more things than usual to both acquire and keep the best hires for their needs.

The talent shortage cuts across many industries, including tech, as well as construction and medical. However, it’s not all bleak; economic forecasts point to another strong year of job growth, which will continue to help Colorado enjoy unemployment rates and decreased consumer inflation.

A Different Kind of Competition
Despite the pressing issues of housing and a talent gap, small businesses in the Denver area are also presented with a unique opportunity; they can leverage to get the people they want, while at the same time out-witting their competition. Because people aren’t always motivated by just money, employers have a chance to offer other things that could attract the ideal hire. People cite the “Work/Life Balance” as something that drives them towards certain opportunities, as well as versatile framework in which to get the work done. Employers can offer work-from-home or flextime schedules, on-site daycare, and a host of other perks that might help them secure just the perfect next hire. Small businesses that can tap into some of the intrinsic needs of their employees will inevitably be the ones that entice the right people to work for them, even if they have to live out in the suburbs.

If you need legal help, don’t hesitate to contact me at the Law Office of E.C. Lewis, P.C., home of your Denver Small Business Attorney. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com.

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney
501 S. Cherry St., Suite 1100
Denver, CO 80264
720-258-6647
Elizabeth.Lewis@eclewis.com

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