When you live and work in the Denver metro area—and see the countless economic and cultural accolades roll in for your region—it’s easy to start believing the hype. So just how are we doing, and what are the true selling points, and deal breakers, for companies looking to relocate or grow in metro Denver?
Shining a light on how the region looks outside the state, business leaders heard from eight site selector—those who help companies narrow in and make their picks before they move—as part of the Metro Denver Economic Development Corporation’s annual Site Selection Conference in September.
We caught up with national site selector Les Cranmer, senior managing director for the commercial real estate advisory group Savills Studley in Philadelphia, to get his perspective on the region.
Business Altitude: We hear more and more from site selectors that the Denver metro area is often on the short-list for companies that are considering expanding or relocating. What is it that makes the region stand out to business leaders?
Les Cranmer: I would respond to that two different ways.
One is the marketing side— and marketing has to do with getting on the radar of business leaders. Are they aware of it? And based on success factors, Denver’s done very well. Colorado as a state, Denver as a large-scale community—not just a city—it’s in the top five. People have heard about it, there’s a buzz about it, so there’s an awareness and a desire to find out more and see if it fits. That’s number one.
Number two is the product itself. What are the attributes? What are the pluses and minuses? And air access is key. This is an area of inward migration and talent—people want to be here … And all those things are lined up. I think corporations are saying, let’s take a look.
BA: You had a unique view of the region during the Site Selection Conference. What do you think is the best kept secret about the Denver metro area?
Cranmer: It’s leading edge. There’s a coolness factor. That’s really not a location-selection criteria, but in terms of quality of life that’s certainly a factor. This community has come a long way. I have not been out here in about five years, so to see the change is remarkable. To see the infill that’s happened at the old Stapleton Airport, to see the design quality of the housing stock out here and the architecture of the buildings, you come in and you’re very impressed, and it’s a place that you maybe want to move to if not find more about. That came through very clear.
BA: Was there one thing that surprised you the most, having not visited the region for five years?
Cranmer: I would say the size of the community, from the air. You drive the streets, the backroads of the community, you don’t necessarily get a sense of the population. You get up in the air and look over the entire community and it is amazing, the density.
BA: If you could change one thing about the Denver metro area that would make it a better place for doing business, what would it be?
Cranmer: There’s a cost issue associated with Denver. We will look at Denver probably about 10 times a year for clients to see if it makes sense. Most cases, the Denver market falls off the table for reasons that you have no control over—closeness to clients, closeness to suppliers, whatever it may be—and there are other communities that just win out. But for the last few projects, we looked at labor costs and the labor costs in this community had really gotten very high. Even to the point that in the last headquarter relocation project we looked at, we found Chicago to be less costly from a labor standpoint. That surprised us.
And, this is good news, by the way. Everybody in the country would love to be in the position that Denver’s in right now. You’ve got a success factor that’s unbelievable, so these are all good problems that come along with that. But that is something that could possibly retard growth going forward.
BA: After spending time here, what will come to mind when you think of the Denver metro area?
Cranmer: Denver’s part of the new economy. It attracts a certain cohort that’s going to be younger, that’s going to be highly educated, that may be technology focused, advanced thinking focused.
Interview conducted and condensed by Sara Crocker, communications manager for the Denver Metro Chamber of Commerce.