Weakness in farm incomes and a pullback of energy exploration explain much of the slowdown in these States. Labor markets in most of the region remain tight. Difficulty in filling entry-level jobs is blamed for some slowing of employment growth in trade and services. Nevertheless, these two sectors accounted for more than half of the new jobs created in the region during the past year. The retail, office, and industrial markets in Colorado Springs, Fargo, and Salt Lake City continue to tighten.
Vacancies remain low and rents have increased despite accelerated construction activity.
New commercial space has been quickly absorbed. Colorado Springs' first speculative office building since the 1980s was fully leased on completion. The outlook for the commercial markets next year is for continued growth. There are some concerns about overbuilding the lodging market in the Denver area, but other commercial sectors are balanced. For the first time in several years, plans are being discussed for speculative office space in downtown Denver.