2022
Annual
Economic
Report
An overview of the
past year and the
changes ahead
City of Centennial 2022 Annual Economic Report
Page | 1
Centennial 2022 Annual Report
Employment growth accelerated throughout Centennial from 2021 to 2022 as businesses continued to recover from
the closures and stay-at-home orders in 2020 that affected payrolls across most industries. Despite this growth,
employment in 2022 remained below its 2019 peak. The unemployment rate in Centennial returned to its
2016 -2019 pre-pandemic average, falling to 2.5 percent in 2022 after reporting a rate of 5.7 percent in 2020 and
4.2 percent in 2021.
Consumer confidence fell between 2021 and 2022, driven largely by inflation concerns, while net taxable sales
increased 13.1 percent during the same period, significantly outperforming pre-pandemic annual averages for the
second consecutive year. With rising interest rates cooling the residential real estate market, existing home sales in
Centennial fell 20.1 percent from 2021 to 2022. Although home price appreciation slowed between 2021 and 2022,
demand for housing continued to outpace supply, and home prices increased by about 10 percent in Centennial
during the period. With increased multifamily building permit activity for the last three years, Centennial’s apartment
market reported increased vacancy rates as well as increased rental rates in 2022. Commercial real estate activity was
mixed in 2022 as average lease rates increased across all property types, but vacancy rates rose in two of the three
property types.
Economic Forecast
• Employment in Metro Denver increased 4.6 percent between 2021 and 2022, finally surpassing pre-pandemic
employment of 2019 by 55,300 employees, or 3.3 percent. Employment increased in 11 of the 13 industry
supersectors, with leisure and hospitality posting the largest increase of 13.4 percent. Despite being the
supersector with the largest growth over the past two years, Leisure & Hospitality employment in 2022 still
remained 3.3 percent below its 2019 peak. The only other supersectors to remain below pre-pandemic levels in
2022 were Retail Trade and Mining & Logging, which were 16.3 percent and 2.0 percent below 2019 levels,
respectively. The unemployment rate in Metro Denver fell from 5.4 percent in 2021 to 2.9 percent in 2022 but
remained above the historically low rate of 2.5 percent reported in 2019.
• Consumer confidence fell 8.2 percent in the Mountain region between 2021 and 2022 and retail sales in Metro
Denver increased 11.4 percent during the period. The population in Metro Denver grew at an estimated rate of
0.9 percent in 2022, up from a historically low rate of 0.1 percent in 2021 when population growth slowed due
to an increase in the number of deaths, a decrease in the number of births, and slower net migration activity.
Home sales fell in Metro Denver in 2022, decreasing 20.8 percent from 2021 to 2022. Commercial vacancy rates
fell slightly for the office and retail markets but increased for the industrial/flex market.
• Metro Denver employment exceeded pre-pandemic levels in 2022, growing by 4.6 percent over 2021 levels.
Most sectors fully recovered except for Mining & Logging, Retail Trade, Leisure & Hospitality, and Government,
which lag due to structural shifts in the energy sector and a broad-based shortage of workers. Labor shortages
persist despite higher average wages and a labor force 4.2 percent larger than 2019 levels. Unemployment rates
also continued to fall, ending 2022 at 2.5 percent with a 2.9 percent annual average. The tight labor market is
expected to persist throughout 2023.
• Economic growth for 2023 was forecast to slow or decline at the beginning of the year as increasing interest
rates put downward pressure on economic activity. Inflation levels are expected to continue their descent but
remain above the Federal Reserve’s long-term goal of about 2.0 percent both nationally and in Metro Denver.
While Metro Denver is expected to outpace national economic conditions, including consumer activity, average
wages, and labor force participation, regional inflation is also forecast to remain stickier than national levels.
Commodity prices, rising consumer debt levels, and the cost of capital are risks to the outlook for the year.
City of Centennial 2022 Annual Economic Report
Page | 2
Employment Activity
Total Employment
This report examines the employment data for the first three quarters of 2020, 2021, and 2022. For simplicity, these
data periods may be referred to as 2020, 2021, and 2022, respectively.
• Centennial had an average
employment base of 64,381 workers
in 2022, representing nearly
4 percent of total Metro Denver
employment.
• Employment in Centennial rose
2.9 percent between 2021 and 2022
which totals an additional 1,806
workers over the period.
Employment rose 1.7 percent
between 2020 and 2021.
• Metro Denver employment averaged
Centennial Employment by Supersector
Professional & Business Services
Financial Activities
Construction
Education & Health Services
Retail Trade
Leisure & Hospitality
Wholesale Trade
Information
Government
Manufacturing
Other Services
Transp., Warehousing, and Utilities
Mining & Logging
1Q-3Q 2022
1Q-3Q 2021
1Q-3Q 2020
more than 1.7 million in 2022, an
increase of 5.1 percent from 2021
employment. Employment in Metro
Denver increased 3.1 percent
between 2020 and 2021.
0 5,000 10,000 15,000 20,000
Sources: Colorado Department of Labor and Employment, Labor Market
Information, Quarterly Census of Employment and Wages (QCEW); U.S. Bureau of Labor Statistics.
• In Centennial, eight of the 13 supersectors posted increases from 2021 to 2022. From 2020 to 2021, eight
supersectors also reported increases.
• The three largest supersectors in Centennial in 2022 were Professional and Business Services, Financial
Activities, and Construction.
1
These supersectors represented 47.3 percent of total employment in Centennial.
Professional and Business Services represented 25.2 percent of Centennial’s total employment in 2022,
compared with 20.2 percent in Metro Denver over the same period. The Professional and Business Services
supersector was also the largest supersector in Metro Denver.
• Employment in the Professional and Business Services supersector increased 3.0 percent, or by 468 employees
between 2021 and 2022. Employment in the second largest supersector, Financial Activities, rose 2.8 percent
or by 196 employees in 2022. By contrast, employment in both supersectors remained nearly constant between
2020 and 2021. Construction employment increased 9.5 percent in 2021 and increased another 5.9 percent in
2022.
• Construction added the most jobs between 2020 and 2021, adding 570 jobs, while Manufacturing added the
most jobs between 2021 and 2022, increasing by 611 positions. Wholesale Trade reported the largest loss of
jobs in 2021, falling by 413 jobs, while Education and Health Services reported the largest loss in 2022, falling by
314 jobs.
• Eleven of the 13 supersectors in Metro Denver reported increases in employment between 2020 and 2021 as
well as between 2021 and 2022. Leisure and Hospitality recorded the largest percentage increase of
15.8 percent in 2022, followed by Professional and Business Services at +8.2 percent.
City of Centennial 2022 Annual Economic Report
Page | 4
Employment Indicators by Supersector
Centennial
Metro Denver
Employment
% Change
2020-21
% Change
2021-22
% Change
2020-21
% Change
2021-22
1Q-3Q 2020
1Q-3Q 2021
1Q-3Q 2022
Total All Industries
61,553
62,575
64,381
1.7%
2.9%
3.1%
5.1%
Private Sector
Mining & Logging
151
131
124
-13.5%
-5.4%
-1.7%
-4.1%
Construction
6,027
6,596
6,983
9.5%
5.9%
0.2%
3.4%
Manufacturing
1,522
1,586
2,197
4.3%
38.5%
1.9%
3.4%
Wholesale Trade
5,731
5,318
5,171
-7.2%
-2.8%
0.9%
5.6%
Retail Trade
5,124
5,597
5,456
9.2%
-2.5%
5.0%
-0.5%
Transp., Warehousing & Utilities
1,462
1,298
1,320
-11.2%
1.7%
3.8%
6.8%
Information
3,449
3,458
3,448
0.3%
-0.3%
2.5%
3.9%
Financial Activities
7,135
7,083
7,279
-0.7%
2.8%
3.1%
3.0%
Prof. & Business Services
15,734
15,749
16,217
0.1%
3.0%
4.9%
8.2%
Education & Health Services
6,633
7,083
6,768
6.8%
-4.4%
3.7%
1.7%
Leisure & Hospitality
4,948
5,005
5,435
1.2%
8.6%
6.8%
15.8%
Other Services
1,535
1,532
1,676
-0.2%
9.4%
4.3%
6.9%
Government
2,093
2,137
2,297
2.1%
7.5%
-1.0%
2.1%
Note: Industry data may not add to all-industry total due to rounding, suppressed data, and employment that cannot be assigned to an industry.
Source: Colorado Department of Labor and Employment, Labor Market Information. Quarterly Census of Employment and Wages (QCEW).
Average Wage
• Centennial’s average weekly wage for all industries was $1,736 in 2022, an increase of 8.3 percent compared
with the 2021 average wage of $1,604. The 2022 average weekly wage was 9.2 percent higher than the average
weekly wage of Metro Denver, representing an additional $146 per week.
• The Wholesale Trade supersector
reported a weekly wage of $2,717 in
Centennial in 2022, the highest weekly
wage among supersectors. Leisure and
Hospitality reported the lowest weekly
wage of $553.
• All 13 supersectors in Centennial
recorded increases in the average weekly
wage between 2021 and 2022. Leisure
and Hospitality recorded the largest
increase, rising 14.2 percent during the
period, followed by Wholesale Trade
(+13.2 percent) and Transportation,
Warehousing, and Utilities
$1,800
$1,700
$1,600
$1,500
$1,400
$1,300
$1,200
$1,100
$1,000
$1,138
Average Weekly Wage for All Industries
Metro Denver
$1,736
(+9.9 percent). The Mining and Logging
supersector reported the smallest year-
1Q-3Q
2015
1Q-3Q
2016
1Q-3Q
2017
1Q-3Q
2018
1Q-3Q
2019
1Q-3Q
2020
1Q-3Q
2021
1Q-3Q
2022
over-year increase of 2.4 percent,
followed by Education and Health
Services at 3.0 percent.
Source: Colorado Department of Labor and Employment, Labor Market Information. Quarterly
Census of Employment and Wages (QCEW).
$1,604
$1,488
$1,591
$1,348
$1,479
$1,278
$1,316
$1,207
Centennial
Centennial Business Counts and Average Wage by Supersector
Business Count
Average Annual Wage
1Q-3Q
2020
1Q-3Q
2021
1Q-3Q
2022
% Change
2020-21
% Change
2021-22
1Q-3Q
2020
1Q-3Q
2021
1Q-3Q
2022
% Change
2020-21
% Change
2021-22
Total All Industries
5,224
5,400
5,709
3.4%
5.7%
$1,543
$1,604
$1,736
3.9%
8.3%
Private Sector
Mining & Logging
24
20
18
-15.3%
-9.8%
$1,982
$2,193
$2,245
10.7%
2.4%
Construction
440
447
459
1.7%
2.7%
$1,493
$1,532
$1,608
2.6%
5.0%
Manufacturing
92
89
96
-3.2%
7.8%
$1,606
$1,613
$1,692
0.4%
4.9%
Wholesale Trade
448
442
456
-1.4%
3.2%
$2,072
$2,401
$2,717
15.9%
13.2%
Retail Trade
262
277
273
5.7%
-1.3%
$923
$995
$1,075
7.8%
8.1%
Transp., Warehousing &
Utilities
71
80
79
12.7%
-0.8%
$759
$824
$905
8.5%
9.9%
Information
145
154
158
6.2%
2.8%
$2,277
$2,438
$2,669
7.0%
9.5%
Financial Activities
815
828
870
1.6%
5.2%
$1,927
$1,951
$2,123
1.2%
8.8%
Professional & Business
Services
1,677
1,751
1,919
4.5%
9.6%
$1,863
$1,949
$2,120
4.6%
8.8%
Education & Health
Services
592
619
649
4.7%
4.8%
$1,123
$1,079
$1,112
-3.9%
3.0%
Leisure & Hospitality
282
295
303
4.4%
2.8%
$463
$484
$553
4.6%
14.2%
Other Services
362
381
403
5.3%
5.8%
$975
$1,009
$1,083
3.5%
7.3%
Government
15
15
15
0.0%
2.2%
$1,610
$1,607
$1,764
-0.1%
9.8%
Note: Industry data may not add to all-industry total due to rounding, suppressed data, and employment that cannot be assigned to an industry.
Source: Colorado Department of Labor and Employment, Labor Market Information.
Quarterly Census of Employment and Wages (QCEW).
Business Counts
• Centennial added 309 businesses between 2021 and 2022, increasing to 5,709 businesses, a 5.7 percent
increase. The number of businesses increased 3.4 percent from 2020 to 2021 as the city added 175 businesses.
• Ten of the 13 supersectors recorded an increase in the number of businesses between 2021 and 2022, with the
Professional and Business Services supersector recording the largest increase of 9.6 percent, or 168 businesses.
Ten of the 13 supersectors reported an increase in the number of businesses in 2021, led by a 75-business
increase in Professional and Business Services.
• Mining and Logging; Retail Trade; and Transportation, Warehousing, and Utilities were the only 3 of the
13 supersectors to report a decline in businesses in 2022, losing a combined total of 7 businesses. In 2021,
13 businesses were lost across Mining and Logging, Manufacturing, and Wholesale Trade.
Page | 5
City of Centennial 2022 Annual Economic Report
Largest Employers in Centennial
The largest employers in Centennial represent a diverse mix of industries. Isolating the largest employers to just the
city’s primary employers (that is, excluding retail operations), these industries range from financial services to
construction and engineering to high technology industries such as telecommunications, bioscience, and computer
systems.
Centennial Largest Employers List - Private Non-Retail
Rank Company Product/Service Employment
1
Comcast
Telecommunications
4,180
2
UnitedHealthcare
Insurance
3,970
3
Arrow Electronics
Electronic component wholesaler
1,530
4
United Launch Alliance (ULA)
Space launch systems
1,460
5
Centura Health
Healthcare
1,400
6
Sierra Nevada Corporation
Aerospace systems
940
7
The Travelers Indemnity Company
Insurance
940
8
RingCentral
Telecommunications
690
9
Standard & Poor's (McGraw-Hill Companies)
Business support services
610
10
MasTec Advanced Technologies
Technology infrastructure
540
11
Select A Service
Retail merchandising technology
500
12
Nordstrom
Credit card & corporate services
500
13
R & A Home Care
Healthcare
500
14
SEAKR Engineering, a Raytheon Company
Engineering services
480
15
AlloSource
Tissue allograft provider
450
16
US Foods
Foodservice distribution
420
17
Stolle Machinery
Fabricated metal machinery
400
18
Zillow Group
Real estate database services
390
19
Amerita
Specialty infusion services
380
20
Haselden Construction
Construction services
360
Source: Metro Denver Economic Development Corporation, July 2023
City of Centennial 2022 Annual Economic Report
Page | 6
Centennial High Location Quotient Employment Activity
The location quotient (LQ) is a ratio that compares the region's employment share of a particular industry with the
employment share nationwide. An LQ equal to 1.0 indicates that the region’s employment concentration is equal to
that of the nation. Where an industry’s local employment concentration is greater than the national economy (an
LQ greater than 1.0), it is presumed that the production of goods and services is more than sufficient to meet local
demand. Therefore, the industry’s production is exported, either physically or financially, a key component of a
“primary job.” These industries drive wealth creation within a region.
LQs were computed for each of the 96 three-digit North American Industry Classification System (NAICS) subsector
level code. Centennial focuses on tracking economic activity in those subsectors that have an LQ of 1.5 or more,
which are highlighted below.
The NAICS standards were revised in 2022, creating 11 new NAICS industries by splitting, merging, or modifying 6-
digit codes. Because of this change, some of the three-digit 2022 NAICS codes used in this analysis are not
comparable with the 2017 NAICS codes used in previous years. Year-over-year comparisons are only analyzed for
subsectors with comparable three-digit NAICS definitions.
Total Employment – High LQs
Employment for High Location Quotient Subsectors
LQ
Employment
% Change
3Q
2022
1Q-3Q
2021
1Q-3Q
2022
2021-22
Broadcasting & Content Providers
10.5
1,728
1,658
-4.0%
Computing Infrastructure Providers, Data Processing, Web Hosting, & Related Services
3.7
654
770
17.7%
Heavy & Civil Engineering Construction
3.3
1,483
1,581
6.6%
Insurance Carriers & Related Activities
3.1
2,893
3,243
12.1%
Management of Companies & Enterprises
2.9
2,951
3,040
3.0%
Construction of Buildings
2.9
2,098
2,094
-0.2%
Funds, Trusts, & Other Financial Vehicles
2.7
39
34
-13.6%
Merchant Wholesalers, Durable Goods
2.7
4,060
3,859
-4.9%
Miscellaneous Manufacturing
2.6
245
699
185.6%
Telecommunications
2.5
253
593
134.4%
Securities, Commodity Contracts, & Other Financial Investments & Related Activities
2.3
1,028
1,059
3.0%
Professional, Scientific, & Technical Services
1.9
8,462
8,584
1.4%
Health & Personal Care Retailers
1.7
752
785
4.4%
Specialty Trade Contractors
1.6
3,015
3,308
9.7%
Couriers & Messengers
1.5
747
761
1.8%
Credit Intermediation & Related Activities
1.5
2,110
1,800
-14.7%
Rental & Leasing Services
1.5
327
371
13.7%
Amusement, Gambling, & Recreation Industries
1.4
1,007
1,019
1.3%
Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
1.3
14
13
-3.2%
*Due to a revision in NAICS industries, these subsectors are not comparable between 2021 and 2022.
Source: Colorado Department of Labor and Employment, Labor Market Information. Quarterly Census of Employment and Wages.
• A total of 19 subsectors are tracked in this analysis. There are 16 subsectors in Centennial that had an LQ of 1.5
or higher in 2022. Two additional subsectors are included due to historically having LQs of 1.5 or higher.
• Employment data from 2022 revealed that nearly 55 percent of Centennial’s total employment was found in
these 19 high LQ subsectors.
• Total employment in the high LQ subsectors reached 35,274 in 2022. Among the 17 high LQ subsectors that can
be compared to prior years, employment increased 4.6 percent between 2021 and 2022.
City of Centennial 2022 Annual Economic Report
Page | 7
• The Professional, Scientific, & Technical Services subsector reported the highest employment in Centennial,
reaching 8,584 in 2022.
• Twelve of the 17 comparable high LQ subsectors in Centennial posted employment increases in 2022. The
Miscellaneous Manufacturing subsector reported the fastest growth year-over-year, rising 185.6 percent, or by
445 employees
2
, followed by Telecommunications, rising 134.4 percent, or by 340 employees. Notable growth
was also reported in the Insurance Carriers & Related Activities subsector, which grew 12.1 percent, or by
350 employees.
• Employment decreases from 2021 to 2022 were led by a decrease in the Credit Intermediation & Related
Activities subsector of 14.7 percent or 310 employees and the Merchant Wholesalers, Durable Goods subsector,
which reported an employment decrease of 4.9 percent, or 200 employees.
Centennial Employment by High LQ Subsector
Professional, Scientific, & Technical Services
Merchant Wholesalers, Durable Goods
Specialty Trade Contractors
Insurance Carriers & Related Activities
Management of Companies & Enterprises
Construction of Buildings
Credit Intermediation & Related Activities
Broadcasting & Content Providers
Heavy & Civil Engineering Construction
Securities, Commodity Contracts, & Other Financial…
Amusement, Gambling, & Recreation Industries
Health & Personal Care Retailers
Computing Infrastructure Providers, Data Processing, Web…
Couriers & Messengers
Miscellaneous Manufacturing
Telecommunications
Rental & Leasing Services
Funds, Trusts, & Other Financial Vehicles
Lessors of Nonfinancial Intangible Assets (except Copyrighted…
1Q-3Q 2022
1Q-3Q 2021
0 2,000 4,000 6,000 8,000 10,000
Source: Colorado Department of Labor and Employment, Labor Market Information. Quarterly Census of
Employment and Wages (QCEW).
Average Wage – High LQs
• The highest average weekly wage was reported in the Computing Infrastructure Providers, Data Processing,
Web Hosting, & Related Services subsector, with an average weekly wage of $4,900, while the lowest weekly
wage of $573 was reported in the Amusement, Gambling, & Recreation Industries subsector.
• Thirteen of the 17 comparable subsectors in Centennial recorded growth in the average weekly wage between
2021 and 2022. The Miscellaneous Manufacturing subsector recorded the largest percentage increase over-the-
year of 33.6 percent, followed by Telecommunications (+26.4 percent) and Amusement, Gambling, & Recreation
(+22.1 percent).
2
Employment growth in the Miscellaneous Manufacturing subsector was largely due a change in NAICS industry
City of Centennial 2022 Annual Economic Report
Page | 8
classification of one company.
City of Centennial 2022 Annual Economic Report
Page | 9
• The Funds, Trusts, and Other Financial Vehicles subsector reported the largest year-over-year decrease in the
average weekly wage, falling 31.5 percent to $1,683 per week, followed by Lessors of Nonfinancial Intangible
Assets (except Copyrighted Works) (-11.8 percent).
Business Counts – High LQs
• The Professional, Scientific, and Technical Services subsector reported the highest business count in Centennial
at 1,430, followed by Specialty Trade Contractors (285) and Merchant Wholesalers & Durable Goods (281).
• The Professional, Scientific, & Technical Services subsector gained the most businesses between 2021 and 2022,
increasing by 155 businesses, or 12.2 percent. Four of the 17 comparable High LQ subsectors reported
contractions between 2021 and 2022, with each of the four reporting a decrease of fewer than five businesses.
Business Count and Average Wage for High Location Quotient Subsectors
LQ
Business Count
Average Weekly Wage
%
Change
%
Change
3Q
2022
1Q-3Q
2021
1Q-3Q
2022
2021-
22
1Q-3Q
2021
1Q-3Q
2022
2021-
22
Broadcasting & Content Providers
10.5
9
12
29.6%
$1,665
$1,806
8.5%
Computing Infrastructure Providers, Data Processing, Web Hosting, & …
3.7
52
56
9.0%
$4,984
$4,900
-1.7%
Heavy & Civil Engineering Construction
3.3
28
30
9.6%
$1,570
$1,495
-4.8%
Insurance Carriers & Related Activities
3.1
197
203
3.0%
$2,048
$2,184
6.6%
Management of Companies & Enterprises
2.9
127
126
-0.8%
$2,598
$2,766
6.5%
Construction of Buildings
2.9
147
144
-2.5%
$1,795
$1,973
9.9%
Funds, Trusts, & Other Financial Vehicles
2.7
5
4
-13.3%
$2,458
$1,683
-31.5%
Merchant Wholesalers, Durable Goods
2.7
271
281
3.7%
$2,556
$2,963
15.9%
Miscellaneous Manufacturing
2.6
20
21
6.7%
$1,076
$1,437
33.6%
Telecommunications
2.5
14
18
28.6%
$1,762
$2,226
26.4%
Securities, Commodity Contracts, & Other Financial Investments & …
2.3
124
128
3.5%
$2,620
$3,022
15.3%
Professional, Scientific, & Technical Services
1.9
1,275
1,430
12.2%
$2,146
$2,309
7.6%
Health & Personal Care Retailers
1.7
26
33
26.9%
$1,180
$1,225
3.8%
Specialty Trade Contractors
1.6
278
285
2.6%
$1,321
$1,435
8.6%
Couriers & Messengers
1.5
20
20
1.7%
$605
$694
14.8%
Credit Intermediation & Related Activities
1.5
129
130
0.8%
$1,752
$1,839
4.9%
Rental & Leasing Services
1.5
27
25
-7.3%
$1,491
$1,583
6.2%
Amusement, Gambling, & Recreation Industries
1.4
38
41
7.8%
$469
$573
22.1%
Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
1.3
4
5
16.7%
$1,745
$1,539
-11.8%
Due to a revision in NAICS industries, these subsectors are not comparable between 2021 and 2022.
Source: Colorado Department of Labor and Employment, Labor Market Information. Quarterly Census of Employment and Wages.
Analysis – High LQs
Bubble charts are popular tools used to illustrate industry clusters. These charts allow multiple variables to be
plotted within the same graph, making it easy to assess relative economic performance. Bubble charts are often
used for pinpointing priority industries since they allow visual comparisons of economic measures.
These charts
3
illustrate industry cluster relationships for the 19 high LQ subsectors for which employment could be
compared from 2021 to 2022. The first chart shows all 19 subsectors plotted on the same chart. The second chart
3
Caution should be taken when considering one-year employment growth for the two subsectors that were
affected by the 2022 NAICS industry revision--Health & Personal Care subsector and Broadcasting & Content
Providers.
City of Centennial 2022 Annual Economic Report
Page | 10
shows only the cluster of subsectors within the red box in the first chart. A solid black line represents the location
quotient equal to 1.0 to easily identify the bubbles that are above this demarcation.
The following four variables are plotted:
•
One-year direct employment growth, from 1Q-3Q 2021 to 1Q-3Q 2022; on the x-axis (horizontal);
•
The industry’s location quotient, 3Q 2022; on the y-axis (vertical);
•
Employment size of the industry, average for the first three quarters of 2022; indicated by the size
of the bubble; and
•
Subsectors that are included in the same supersector are the same color.
City of Centennial 2022 Annual Economic Report
Page | 11
12.0
10.0
8.0
6.0
4.0
Broadcasting
& Content
Providers
Supersector Key
Construction and Manufacturing
Wholesale & Retail Trade
Transportation & Warehousing
Information
Financial Activities
Professional & Business Services
Arts, Entertainment, & Recreation
Miscellaneous
Telecommunications
Manufacturing
-50.0%
0.0
0.0%
50.0% 100.0% 150.0% 200.0%
One-Year Employment Growth (1Q-3Q2021 - 1Q-3Q2022)
Source: MDEDC analysis of Colorado Department of Labor, Labor Market Information, Quarterly Census of Employment and Wages.
Funds, Trusts, &
Merchant
Construction
of Buildings
4.0
3.5
3.0
Management of
Companies &
Enterprises
Heavy & Civil
Engineering
Construction
Securities,
Computing
Infrastructure
Providers, Data…
Other Financial
Vehicles
Credit
Wholesalers,
Durable
Goods
Lessors of
Nonfinancial
Intangible Assets…
2.5
2.0
1.5
Commodity
Contracts,
& Other…
Professional,
Scientific, &
Technical
Services
Insurance Carriers &
Related Activities
Rental &
Leasing
Intermediation &
Related Activities
Health &
Personal
Care
Retailers
1.0
0.5
0.0
Couriers &
Messengers
Amusement,
Gambling, &
Recreation
Industries
Specialty Trade
Contractors
Services
-20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0%
One-Year Employment Growth (1Q-3Q2021 - 1Q-3Q2022)
Source: MDEDC analysis of Colorado Department of Labor, Labor Market Information, Quarterly Census of Employment and Wages.
2.0
Centennial Location Quotient Relative to U.S.
Centennial Location Quotient Relative to U.S.
City of Centennial 2022 Annual Economic Report
Page | 12
Labor Force and Unemployment Rate
• The labor force in Centennial rose
2.5
percent
from
2021
to 2022,
Unemployment Rates
representing 1,589 additional people
9%
either working or looking for a job
8%
during the period compared with a
3.0 percent increase in the labor force
7%
from 2020 to 2021. The labor force
6%
increased 1.4 percent in Arapahoe
County and rose 1.7 percent in Metro
5%
Denver from 2021 to 2022. Colorado 4%
reported an increase in the labor
3%
force of 1.3 percent in 2022, and an
increase
of 1.9
percent
occurred
2%
across the U.S. over-the-year.
2020 2021 2022
Centennial
Arapahoe
County
Metro
Denver
Colorado
U.S.
• All five market areas reported over-
the-year decreases in the
Sources: Colorado Department of Labor and Employment, Labor Market
Information; U.S. Bureau of Labor Statistics.
unemployment rate from 2021 to 2022 after similar decreases were reported between 2020 to 2021.
Centennial’s unemployment rate fell 1.7 percentage points from 4.2 percent in 2021 to 2.5 percent in 2022, the
lowest unemployment rate of the five market areas.
• The Centennial labor force represented 17.3 percent of the total labor force in Arapahoe County in 2022.
Labor Force and Unemployment
Labor Force
Unemployment Rate
2020 2021 2022
% Change
2020-21
% Change
2021-22
2020 2021 2022
Centennial
61,471
63,316
64,905
3.0%
2.5%
5.7%
4.2%
2.5%
Arapahoe County
360,185
370,311
375,539
2.8%
1.4%
7.4%
5.8%
3.1%
Metro Denver (000s)
1,806
1,859
1,890
2.9%
1.7%
6.9%
5.4%
2.9%
Colorado (000s)
3,089
3,158
3,201
2.2%
1.3%
6.8%
5.5%
3.1%
U.S. (000s)
160,742
161,204
164,287
0.3%
1.9%
8.1%
5.4%
3.6%
Sources: Colorado Department of Labor and Employment, Labor Market Information; U.S. Bureau of Labor Statistics.
City of Centennial 2022 Annual Economic Report
Page | 13
Consumer Activity
Consumer Confidence Index
• The Consumer Confidence Index for
the U.S. fell 7.3 percent from 2021 to
2022, compared to an 11.5 percent
increase between 2020 and 2021.
Analysts noted that the steady decline
in confidence in the first half of the
year was driven by increasing
concerns about inflation, including
rising gas and food prices, but
stabilized at the end of the year as
inflation concerns dissipated,
prompted largely by declining
gasoline prices.
• Colorado is included in the Mountain
Region Index and the area reported
160
140
120
100
80
60
40
20
0
Consumer Confidence Index
Source: The Conference Board.
an average index of 105.7 in 2022, a decrease of 8.2 percent from 2021. In the Mountain Region, consumer
confidence remained above national confidence through the first half of 2022 but fell below the national
average in the third quarter.
Local Net Taxable Sales
• Net taxable sales totaled about
$2.18 billion in Centennial in 2022, up
14.1 percent, or about $271 million,
from 2021. Between 2020 and 2021,
sales increased 23.0 percent, or by
about $358 million. From 2015 to
2022, net taxable sales increased
every year, except for 2020 when
sales fell 7.4 percent.
Median Household Income
$2.3
$2.2
$2.1
$2.0
$1.9
$1.8
$1.7
$1.6
$1.5
$1.4
$1.3
$1.2
$1.1
$1.0
Net Taxable Sales
2015 2016 2017 2018 2019 2020 2021 2022
Source: The City of Centennial, Finance Department.
• Median household income in Centennial was $108,531 in 2021, down 1.2 percent, or $2,726, from a peak of
$111,257 in 2019
4
. The median household income in Centennial in 2021 was 28.6 percent higher than Arapahoe
County ($84,386) and 31.9 percent higher than Colorado ($82,254).
• Median household income in Centennial rose 12.3 percent from 2015 to 2021, while the consumer price index
for the Denver-Aurora-Lakewood MSA increased 17.4 percent during the same period. This suggests that the
inflation-adjusted median household income fell 5.1 percent between 2015 and 2021.
4
Due to limited data availability of American Community Survey one-year estimates in 2020 because of the
U.S.
Mountain
$ Billions
4Q 2013
4Q 2014
4Q 2015
4Q 2016
4Q 2017
4Q 2018
4Q 2019
4Q 2020
4Q 2021
4Q 2022
City of Centennial 2022 Annual Economic Report
Page | 14
impacts of the COVID-19 pandemic, household and median income data from 2020 are not comparable with other
years.
City of Centennial 2022 Annual Economic Report
Page | 15
Population
• The population of Centennial was
106,937 as of July 1, 2021, a
1.1
percent decrease from 2020 and
the second over-the-year decline in
population since 2006, according to
the Colorado State Demography
Office. In 2020, the population
declined 0.9 percent. Prior to the
decline in 2020, the population in
Centennial had been growing at an
average of 0.9 percent per year from
2010 to 2019.
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
-0.5%
-1.0%
Total Population
Year-over-year percent change
Colorado
Arapahoe
County
• In Arapahoe County and across the
-1.5%
Centennial
state, population growth has
steadily slowed since 2011, but has
remained positive. Between 2020
and
2021,
population
growth
in
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Colorado State Demography Office.
Arapahoe County was nearly flat at 0.1 percent, while the population in Colorado grew 0.5 percent over the
same period.
• Assuming Centennial’s share of the total population in Arapahoe County holds steady at about 16.3 percent,
Centennial’s population is likely to reach 111,145 in 2026, based on the Colorado State Demography Office
forecasted population increase in Arapahoe County of between 0.5 percent and 1.1 percent per year.
Residential Real Estate
Existing Home Sales
• Between 2021 and 2022, all three
market areas reported decreases in
detached home sales and increases in
home prices. Detached home sales
fell 20.3 percent in Centennial, 19.7
percent in Arapahoe County, and 20.6
percent in Metro Denver. Between
2020 and 2021 detached sales rose
3.2 percent in Centennial but fell 0.6
percent and 1.3 percent in Arapahoe
County and Metro Denver,
respectively.
• All three market areas recorded
increases in the single-family
$800
$700
$600
$500
$400
$300
$200
$100
$0
Single-Family Detached Average Price
Centennial Arapahoe Metro Denver
2020 2021 2022
Source: DMAR
detached average sale price during the same periods. Prices rose at a faster rate from 2020 to 2021, increasing
21.0 percent in Centennial, 18.4 percent in Arapahoe County, and 18.3 percent in Metro Denver. From 2021 to
2022, prices rose 9.8 percent in Centennial, 11.1 percent in Arapahoe County, and 11.2 percent in Metro Denver.
Thousands
City of Centennial 2022 Annual Economic Report
Page | 16
Residential Real Estate Market
Single-Family Attached
%
Change
2020-
21
%
Change
2021-
22
Single-Family Detached
%
Change
2020-
21
%
Change
2021-22
Home Sales
2020
2021
2022
2020
2021
2022
Centennial
424
419
338
-1.2%
-19.3%
1,553
1,603
1,277
3.2%
-20.3%
Arapahoe County
4,241
4,667
3,645
10.0%
-21.9%
8,631
8,575
6,888
-0.6%
-19.7%
Metro Denver
18,324
19,520
15,355
6.5%
-21.3%
45,192
44,585
35,388
-1.3%
-20.6%
Average Sold Price
Centennial
$340,965
$404,499
$444,008
18.6%
9.8%
$561,312
$679,156
$755,952
21.0%
11.3%
Arapahoe County
$304,682
$345,637
$384,000
13.4%
11.1%
$545,105
$645,302
$705,301
18.4%
9.3%
Metro Denver
$379,245
$433,586
$480,184
14.3%
10.7%
$583,780
$690,666
$767,944
18.3%
11.2%
• All three housing market areas
recorded decreases in attached home
sales from 2021 to 2022, falling 19.3
percent in Centennial, 21.9 percent in
Arapahoe County, and 21.3 percent in
Metro Denver. Between 2020 and
2021, attached home sales fell 1.2
percent in Centennial, but rose 10.0
percent and 6.5 percent in Arapahoe
County and Metro Denver,
respectively.
• All three market areas recorded an
increase in the single-family attached
average sold price over each of the
last two years. Centennial reported an
18.6 percent increase from 2020 to
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
Source: Denver Metro Association of Realtors
Single-Family Attached Average Price
2020 2021 2022
Source: DMAR
2021 and a 9.8 percent increase from 2021 to 2022. Arapahoe County reported a 13.4 percent increase from
2020 to 2021 and an 11.1 percent increase from 2021 to 2022. Metro Denver reported a 14.3 percent increase
from 2020 to 2021 before increasing 10.7 percent from 2021 to 2022.
Apartment Market
• Apartment vacancy rates
increased in all three submarket
areas
5
from the fourth quarter of
2021 to the fourth quarter of
2022. The largest increase of
1.2
percentage points was
reported in the Denver Tech
Center submarket. The Denver
Tech Center submarket also
reported the highest vacancy
rate of 6.3 percent, followed by
Littleton (5.8 percent) and
Aurora South (5.3 percent).
• The vacancy rate also increased
in Arapahoe County and Metro
6.5%
6.0%
5.5%
5.0%
4.5%
4.0%
3.5%
3.0%
Apartment Vacancy Rate
Denver Tech
Center
Littleton
Metro Denver
Arapahoe County
Aurora South
Source: Denver Metro Apartment Vacancy and Rent Survey
5
The City of Centennial is located within three submarkets of Arapahoe County: Littleton, Denver Tech Center, and
1Q 2021
2Q 2021
3Q 2021
4Q 2021
1Q 2022
2Q 2022
3Q 2022
4Q 2022
Centennial
Arapahoe
Metro Denver
City of Centennial 2022 Annual Economic Report
Page | 17
Aurora South.
City of Centennial 2022 Annual Economic Report
Page | 18
Denver between Q4 2021 and Q4 2022. The vacancy rate increased 1.0 percentage points to 5.5 percent in
Arapahoe County and increased 0.9 percentage points to 5.6 percent in Metro Denver.
Average Apartment Rents and Vacancy
Vacancy Rate
Avg Rental Rate - All Types
4Q 2021
4Q 2022
4Q 2021
4Q 2022
Littleton
5.7%
5.8%
$1,635
$1,751
Denver Tech Center
5.1%
6.3%
$1,867
$2,001
Aurora South
5.1%
5.3%
$1,794
$1,851
Arapahoe County
4.5%
5.5%
$1,630
$1,736
Metro Denver
4.7%
5.6%
$1,726
$1,838
• The average rental rate for all
property types in all three submarkets
increased in 2022. The Denver Tech
Center reported the highest average
rental rate of $2,001 at the end of
2022, up 7.2 percent from the same
time in 2021. The average rental rate
was $1,851 in Aurora South
(+3.2
percent) and $1,751 in Littleton (+7.1
percent).
• Metro Denver and Arapahoe County
both reported an increase in the
average rental rate of 6.5 percent
between the fourth quarters of 2021
and 2022. The average rental rate at
$2,200
$2,000
$1,800
$1,600
$1,400
Apartment Lease Rates
Average for all unit
s
Littleton Denver Tech Center
Aurora South Arapahoe County
Metro Denver
Source: Denver Metro Apartment Vacancy and Rent
the end of 2022 was $1,736 in
Arapahoe County and $1,838 in
Metro Denver.
New Residential Building Permits
• The number of single-family building
permits in Centennial increased year-
over-year from 2015 to 2018, peaking
at 264 units permitted, but then fell
every year from 2018 to 2022.
Between 2020 and 2022, nearly all
new units permitted in Centennial
were multifamily.
• There were only 5 single-family
buildings permitted in 2022, down
from 7 in 2021 and 10 in 2020.
• Between 2021 and 2022 the average
valuation of single-family homes
permitted fell 52.1 percent from
$1.2 million in 2021 to $586,000 in
2022. The average valuation rose
significantly in the preceding years,
900
800
700
600
500
400
300
200
100
0
Centennial New Residential Building Permit Activity
2015 2016 2017 2018 2019 2020 2021 2022
Single-Family Permits Multi-Family Units
Source: City of Centennial.
1Q 2021
2Q 2021
3Q 2021
4Q 2021
1Q 2022
2Q 2022
3Q 2022
4Q 2022
Jenny Houlne
2023-08-24 16:22:00
--------------------------------------------
Can we change the graph so that the
numbers in 2020, 2021, and 2022 show
for SF homes?
City of Centennial 2022 Annual Economic Report
Page | 19
Permits
rising 70.7 percent from 2020 to 2021 and 106.3 percent from 2019 to 2020.
• Centennial issued 5 multi-family building permits for 886 units in 2022, up from 610 units permitted in 2021 and
846 units permitted in 2020. The valuation per multi-family unit averaged $124,604 in 2022, up from $78,389 in
2021, but down slightly from $136,467 in 2020.
Commercial Real Estate
Commercial Building Permits
• Centennial issued 359
12
commercial permits during
10
2022, of which 348 were
commercial
alteration
permits
8
and 11 were new commercial
permits. This represented a
6
24.7 percent increase compared
4
with 2021, which had 7 new
commercial permits and 288
2
commercial alteration permits.
0
From 2020 to 2021, total
commercial permits fell
Centennial Commercial Building Activity
2019 2020 2021
New Commercial Permits New Commercial Valuation
$70
$60
$50
$40
$30
$20
$10
$0
0.7 percent from 290 to 288
permits.
Source: City of Centennial.
• While new commercial permits increased each year, total new commercial valuation fell 61.8 percent from 2020
to 2021, before rising 239.9 percent from 2021 to 2022.
• Centennial permitted 375,059 square feet of new commercial space in 2022, up 11.3 percent from
337,101 square feet in 2021. In 2020, the square footage was not reported.
• Commercial alterations permitted in Centennial fell 2.4 percent between 2020 and 2021, while total valuation
of commercial alterations fell 42.8 percent over the same period. Between 2021 and 2022 commercial alterations
permitted rose 23.8 percent, while total valuation of commercial alterations rose 115.0 percent.
Centennial Commercial Building Permits
2020 2021 2022
% Change
2020-21
% Change
2021-22
New Commercial
No. of Permits
2
7
11
250.0%
57.1%
Total Valuation
$45,840,773
$17,531,294
$59,586,878
-61.8%
239.9%
Square Footage
-
337,101
375,059
NA
11.3%
Commercial Alteration
No. of Permits
288
281
348
-2.4%
23.8%
Total Valuation
$75,075,656
$42,918,700
$92,285,287
-42.8%
115.0%
Total Commercial
No. of Permits
290
288
359
-0.7%
24.7%
Valuation
$120,916,429
$60,449,994
$151,872,165
-50.0%
151.2%
Source: City of Centennial.
Valuation (Millions)
City of Centennial 2022 Annual Economic Report
Page | 20
Office Market
• Centennial had 161 office buildings offering more than 6.1 million square feet of space in the fourth quarter of
2022. This represented 13.2 percent of office space in Arapahoe County and 3.0 percent of space in Metro
Denver.
• Centennial had the highest office vacancy rate of the three market areas. The office vacancy rate fell
3.5 percentage points to 12.9 percent between the fourth quarters of 2021 and 2022 in Centennial. The vacancy
rate fell 0.9 percentage points to 12.3 percent in Arapahoe County and fell 0.1 percentage points in Metro
Denver to 12.1 percent.
• The office lease rate in Centennial increased 5.4 percent year-over-year between the fourth quarters of 2021
and 2022 to $25.95 per square foot. In Arapahoe County, the lease rate increased 0.2 percent to $26.40 per
square foot, while the lease rate in Metro Denver rose 5.0 percent to $31.00 per square foot between
4Q 2021 and 4Q 2022.
• Net absorption of office space in Centennial totaled about 220,500 square feet from the fourth quarter of 2021
to the fourth quarter of 2022 and across Arapahoe County, net absorption was 421,000 square feet. Among
Metro Denver counties, net office absorption was mixed, with five of the seven counties reporting positive net
absorption, but negative net absorption reported in Boulder and Douglas counties, leading to total net
absorption in Metro Denver of 800,000 square feet.
Office Market Commercial Vacancy and Lease Rates
Total Existing Square Footage Vacancy Rate
Avg Lease Rate
(per sq. ft.)
4Q
2020
4Q
2021
4Q
2022
4Q
2020
4Q
2021
4Q
2022
4Q
2020
4Q 2021 4Q 2022
Centennial
6,105,501
6,105,501
6,109,456
14.1%
16.4%
12.9%
$24.68
$24.63
$25.95
Arapahoe
County
46,105,766
46,214,326
46,218,281
12.3%
13.2%
12.3%
$26.11
$26.34
$26.40
Metro
Denver
200,261,284
202,245,883
202,994,408
10.7%
12.2%
12.1%
$28.95
$29.51
$31.00
Industrial/Flex Market
Note: Vacancy rate and average lease rate are for direct space only (excludes sublet space). Office rates are full-service.
Source: CoStar Realty Information, Inc.
• Centennial had 159 industrial and flex buildings offering nearly 5.7 million square feet of space. This represented
16.4 percent of the industrial/flex space in the southeast market and 1.9 percent of space in Metro Denver.
• The vacancy rate increased 2.7 percentage points to 11.1 percent in Centennial from the fourth quarter of 2021
to the fourth quarter of 2022. The vacancy rate increased 0.6 percentage points to 6.3 percent in Arapahoe
County and increased 0.4 percentage points to 5.6 percent throughout Metro Denver.
• The industrial/flex space average lease rate rose 14.0 percent over-the-year to $11.66 per square foot in
Centennial. Arapahoe County reported an increase in the lease rate of 6.8 percent to $11.54 per square foot.
The lease rate rose 5.7 percent over-the-year to $11.27 per square foot in Metro Denver.
• There was 50,000 square feet of industrial/flex space absorbed in Centennial between the fourth quarter of
2021 and the fourth quarter of 2022. Net occupied space in Metro Denver increased by more than 7.3 million
square feet.
City of Centennial 2022 Annual Economic Report
Page | 21
Industrial/Flex Market Commercial Vacancy and Lease Rates
Total Existing Square Footage Vacancy Rate
Avg Lease Rate
(per sq. ft.)
4Q
2020
4Q
2021
4Q
2022
4Q
2020
4Q
2021
4Q
2022
4Q
2020
4Q 2021 4Q 2022
Centennial
5,282,436
5,470,736
5,689,712
6.8%
8.4%
11.1%
$9.83
$10.23
$11.66
Arapahoe
County
31,745,419
34,094,670
34,682,981
5.4%
5.7%
6.3%
$10.33
$10.81
$11.54
Metro Denver
283,056,340
291,788,962
300,493,588
5.5%
5.2%
5.6%
$10.08
$10.66
$11.27
Note: Vacancy rate and average lease rate are for direct space only (excludes sublet space).
Industrial/flex rates are NNN.
Source: CoStar Realty Information, Inc.
Retail Market
• Centennial had 214 retail buildings
offering more than 4.8 million square
feet
of
space.
This
represented
12.2 percent of the retail space in the
Arapahoe County and 2.7 percent of
space in Metro Denver.
• Centennial had the highest retail
vacancy rate of the three market
areas. The retail vacancy rate fell 2.7
percentage points to 5.8 percent in
Centennial from the fourth quarter of
2021 to the fourth quarter of 2022.
The vacancy rate fell 0.7 percentage
points to 4.3 percent vacancy in
Arapahoe County and fell
0.4 percentage points to 4.0 percent
vacancy throughout Metro Denver
during the period.
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
Centennial Direct Vacancy Rates
By property type
Retail
4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2020 2021 2021 2021 2021 2022 2022 2022 2022
Source: CoStar Realty Information, Inc.
• Centennial had the highest average lease for retail space of the three market areas. The average lease rate for
retail space in Centennial was $21.52 per square foot, up 18.9 percent from the same time last year. The lease
rate in Arapahoe County increased 5.4 percent over-the-year to $18.64 per square foot. Throughout Metro
Denver, the retail lease rate rose 4.7 percent to $20.21 per square foot.
• Net absorption of retail space in Centennial totaled nearly 136,000 square feet from the fourth quarter of 2021
to the fourth quarter of 2022. In Arapahoe County net absorption totaled 309,000 square feet and in Metro
Denver net occupied space increased by nearly 1.4 million square feet.
Office
Industrial/Flex
City of Centennial 2022 Annual Economic Report
Page | 22
Retail Market Commercial Vacancy and Lease Rates
Total Existing Square Footage Vacancy Rate
Avg Lease Rate
(per sq. ft.)
4Q
2020
4Q
2021
4Q
2022
4Q 2020
4Q
2021
4Q
2022
4Q
2020
4Q
2021
4Q
2022
Centennial
4,797,654
4,803,161
4,808,660
8.2%
8.5%
5.8%
$22.12
$18.10
$21.52
Arapahoe
County
39,124,153
39,214,544
39,254,870
6.0%
5.0%
4.3%
$17.46
$17.68
$18.64
Metro
Denver
174,416,034
175,083,029
175,857,999
4.9%
4.4%
4.0%
$18.83
$19.30
$20.21
Note: Vacancy rate and average lease rate are for direct space only (excludes sublet space).
Retail rates are NNN.
Source: CoStar Realty Information, Inc.
Commercial Construction
• There were three industrial buildings completed in the Centennial Business Center in 2022, which added a total
of 218,976 square feet of space to the city. A 3,289-square-foot retail building and a 3,955-square-foot office
building for Rippe Dental Associates were also completed in 2022.
• Six commercial buildings were under construction in Centennial at the end of 2022, including three office
buildings and three industrial/flex buildings. All three office buildings are slated to deliver in 2025, while the
industrial/flex buildings will be finished in 2023 and 2024. Once completed, these six buildings will add an
additional 735,848 square feet of commercial real estate in Centennial.
• The largest buildings under construction at the end of 2022 were office buildings, including the Westray Tower
1 with 332,781 square feet of space, and The District Buildings 3 and 4, adding 164,312 square feet and 159,672
square feet, respectively.
Prepared by:
Metro Denver Economic Development Corporation
August 2023
