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Boulder Valley Real Estate: The rise of virtual in real estate after COVID-19
It is evident that the world was woefully unprepared for a pandemic like COVID-19, and local real estate was no exception. COVID-19 wrought fright, confusion, and uncertainty on buyers, sellers, real estate agents, and legislators, as everyone tried to discern how best to navigate the crisis unfolding before them. Many contracts to buy and sell real estate that were then in-process fell through or were renegotiated, and the legal fallout from that may stretch on for years.
And yet, life marches forward, and people continue to need to move and buy/sell real estate, so all of the players have learned to adapt in order to help people move on with life. Some of these adaptations will likely become enduring features of the new normal, while others may fade with time. The following is a brief look at some of the most prominent trends to emerge from this pandemic and whether they are likely to last.
The real estate industry has been notoriously slow to modernize its practices, but one surprising benefit of the pandemic is that it appears to have pushed the industry into the 21st century.
- Marketing.Before COVID-19, a small minority of properties were marketed using 3D technology, relying instead on photos and, perhaps, static floor plans. Now, however, virtually every buyer expects (and sellers demand) an immersive 3D tour of a listed property. Pre-pandemic, buyers would likely visit many homes in-person before deciding on which home to make an offer. Now, buyers are almost certain to “tour” a number of homes virtually and then select the one (or few) that they actually want to see in person. We are even seeing this trend emerge in commercial real estate, as being able to tour a property virtually can save companies time and money in assessing whether a potential commercial space will fit their needs.
This 3D marketing trend will almost certainly continue for the duration of the pandemic, but it is less clear if it will continue after or slowly fade back to “normal” as people begin to feel safer again.
- Remote transactions.Before this pandemic, a large portion of a real estate transaction could be accomplished electronically, with agency agreements, purchase contracts and property-related disclosures all commonly being signed electronically. However, when it came time to close the transaction, the parties still had to physically attend a closing and physically sign documents in front of a notary public. This was the case for two primary reasons. First, Colorado’s previous attempts to pass remote notarization legislation, which would have removed the requirement of physical presence and allowed parties to sign documents via the internet, never made it through the legislature. And second, many lending institutions continue to require physical “wet” signatures and in-person notaries to minimize the potential for fraud. To solve the first problem, Gov. Polis signed an executive order allowing remote notarization. However, as we soon learned, even with remote notarization now allowed, lending institutions (inexcusably, in my view) persisted in requiring in-person physical signatures. Thus, we experienced the phenomenon of “curbside closings,” wherein the parties would drive to the title company and sit in their cars while a notary in a mask and gloves would hand them the document, watch them sign, and then notarize their documents. Having witnessed such “curbside closings,” which are clunky and awkward, I can predict that buyers and sellers will demand that the government and lending institutions allow fully remote closings in the future. Once in place, I believe this trend will be here to stay because it is vastly more convenient for people.
- Shifting consumer preferences.With most employees (those fortunate enough to keep their jobs) being forced to work remotely, many people and companies have discovered that, not only do they like working from home, they can actually be more productive. As a consequence, an emerging trend we are seeing is that buyers are looking for homes with an office (or workspace) more than before. And they also seem to be favoring rural (i.e., private space) over dense and urban. This may also portend a coming shift in the commercial office market, as companies realize that they can get by with much less space than before. This trend is likely to continue as more people become accustomed to being productive from home; however, the strength and reach of this trend will be limited by the fact that some jobs can be done only in person and more space at home costs more money, so not everyone will be able to realize this desire.
These are just a few of the trends emerging from the COVID-19 pandemic, and it is likely that others will develop as things continue to unfold. It will behoove buyers, sellers, and landlords to track these trends carefully to best position themselves for the future.
Originally posted by Jay Kalinski is broker/owner of Re/Max of Boulder.
Colorado 5th Most Innovative State
Colorado ranked as the No. 5 most innovative state in the U.S. and the achievement comes with perks.
For example, innovation is a principal driver of U.S. economic growth, reports WalletHub, which points toward good news for Colorado’s economic outlook.
“In 2019, the U.S. will spend an estimated $581 billion on research and development — more than any other country in the world and about 25 percent of the world’s total — helping the nation rank No. 6 on the Global Innovation Index,” writes WalletHub in its recently released study of Least & Most Innovative States.
The study compared 50 states and the District of Columbia across 24 indicators of innovation-friendliness, ranging from share of STEM professionals to tech-company density.
The top five states and their corresponding scores out of 100 are:
No. 1 Massachusetts, 72.31
No. 2 Washington, 68.03
No. 3 District of Columbia, 67.47
No. 4 Maryland, 64.06
No. 5 Colorado, 63.35
“Certain states deserve more credit than others for America’s dominance in the tech era. These states continue to grow innovation through investments in education, research and business creation, especially in highly specialized industries,” notes WalletHub.
Colorado also ranked in the top 10 for six metrics, including tied for No. 1 in eighth-grade math and science performance, No. 5 for share of STEM professionals and share of technology companies, No. 6 for projected STEM-job demand, and No. 7 for venture capital funding per capita.
What makes Colorado so innovative?
WalletHub compared two dimensions across 24 metrics, “Human Capital” and “Innovation Environment.”
Human Capital includes:
- Share of STEM Professionals
- Share of Science & Engineering Graduates
- Projected STEM-Job Demand by 2020
- Scientific-Knowledge Output
- Eighth-Grade Math & Science Performance
- AP Exam Participation
Innovation Environment includes:
- Share of Technology Companies
- R&D Spending per Capita
- R&D Intensity
- Invention Patents per Capita
- IP Services Exports as a Share of All Services Exports
- Business Churn
- Jobs in New Companies
- Net Migration
- Entrepreneurial Activity
- Number of Startups “Accelerated” per Total Number of Start-ups
- Tax-Friendliness
- Venture-Capital Funding per Capita
- Average Annual Federal Small-Business Funding per GDP
- Industry-Cluster Strength
- Open Roads & Skies Friendly Laws
- Average Internet Speed
- Share of Households with Internet Access
- Adoption of K–12 Computer Science Standards, Note that this metric was chosen because WalletHub considers most future innovation will be tech enabled.
For more information visit https://wallethub.com/edu/most-innovative-states/31890
Originally Posted by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, April 16th, 2019
What Makes a Smart City Smart?
Boulder is known for its highly educated, technology-oriented citizenry. The city is even ranked No. 1 nationally in the “Bloomberg Brain Concentration Index,” which tracks business formation as well as employment and education in the sciences, technology, engineering, and mathematics.
But does that make Boulder a smart city? Not according to Colorado Smart Cities Alliance (CSCA). CSCA might summarize a smart city as an environment that works well for the people who live in it.
Specifically, CSCA defines a smart city “as an environment that enables all of us to effectively and efficiently live, work, and play. It leverages advancements in science and technology to create an area that is intelligent about strategic and tactical needs and wants of all the constituents.”
Boulder, Longmont, and Fort Collins are among a dozen cities along the Front Range that are founding members of the CSCA. Founded in 2017 by the Denver South Economic Development, CSCA is an open, collaborative, and active platform where stakeholders work to collaborate on continually improving the region’s economic foundations for future generations. The initiative aims to make Colorado a leader in the development of intelligent infrastructure. The goal is to accelerate the development of statewide Smart City initiatives that will improve our play, family, and work lives, from transportation and housing to public safety and the environment.
In ColoradoBiz Magazine, DesignThinkingDenver’s CEO Joe Hark Harold says, smart cities could design systems that save water and energy, reduce traffic and traffic congestion, lessen crime, better prepare for disasters, provide better connections between business and customers, and even manage the lights remotely.
There is urgency behind this movement, driven by an increase of those who live in urban environments. More than three million additional people are expected to move to Colorado by 2050 — an increase of more than 50 percent from 2015, according to the Colorado State Demography Office. Coupled with the growth the state has already experienced, the projected increase has spurred community leaders to collaborate on finding innovative, cost-effective ways to better monitor, manage, and improve infrastructure and public services.
“The Colorado Smart Cities Alliance is advancing policies and technologies that will better equip Colorado residents to live, work, and play in a future that is increasingly being shaped by the complex challenges of urban growth,” says Jake Rishavy, vice president of innovation at the Denver South Economic Development Partnership. “We’re working to create a 21st-century technology infrastructure right here in Colorado that will help to enhance everyone’s quality of life, particularly as our communities continue to grow.”
Among its activities, CSCA hosts regular “Civic Labs” events around the state to share challenges, expertise and solutions. At the Denver Smart City Forum in June, speakers described “smart” technology as having to be about the people who use it and benefit from it, that is, human-centered design and thinking.
“People, not technology, will create smart cities,” said Colorado’s Chief Innovation Officer Erik Mitisek.
To find out more and get involved in the Colorado Smart Cities Alliance, visit http://coloradosmart.city/
For more about the recent forum and DesignThinkingDenver, read http://www.cobizmag.com/Trends/Smart-Cities-Arent/ and http://www.cobizmag.com/Trends/Denver-Digs-Deep-on-Smart-City-Development-and-Implementation/
Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Wednesday, September 26th, 2018 at 11:31am.
Boulder Performs Well Among Top Innovation Cities
Boulder stands tall when compared with much larger metropolitan areas that excel in innovation and entrepreneurship.
A report produced by the Boulder Economic Council compares Boulder with leading innovation centers including Silicon Valley, San Francisco, Austin, Boston, Seattle, Portland, Denver and Raleigh. Though these metropolitan areas have a much larger population than Boulder, they were selected as peer communities following input from local focus groups and ranking reviews published by Inc., Forbes, and others.
To get a meaningful comparison, data was normalized for population size and other measures in analysis by CU-Boulder’s Leeds School of Business Research Division.
And the news is good, according to findings published in the Boulder Innovation Venture Report. Boulder compares favorably in key success metrics from education and jobs to quality of life. The area is challenged, however, by a lack of affordable housing to supply its workforce with a place to live.
The Boulder metro area ranks first among the peer communities for the percentage of population 25 and up who hold a bachelor’s degree or higher. Over 60 percent of residents have a bachelor’s degree, which is among the highest in the United States.
In the jobs ranking, the City of Boulder has about 100,000 jobs, a number two or three times larger than almost any other U.S. city comparable in population size. Among those jobs, Boulder has the second highest concentration of science, technology, engineering and math (STEM) occupations among all the peer regions.
Boulder has the second-highest per capita venture capital investment in comparison to the peer communities.
In fact, Boulder is ranked number one nationally in the “Bloomberg Brain Concentration Index,” which tracks business formation as well as employment and education in the sciences, technology, engineering and mathematics.
Drilling down into the creative services industry – advertising agencies and web and app developers – outdoor recreation and food manufacturing, Boulder’s concentration of local businesses was significantly higher than peer communities.
Even in coffee shops the Boulder area percolates, achieving a tie with the Seattle-Tacoma-Bellevue metro for the highest concentration of coffee shops among peer communities. Boulder outranked all the peer cities on restaurants per 1,000 residents.
While any amount of time stuck in traffic is too much, Boulder drivers spend less than all but one of the peer communities with 10 percent of total driving time in congestion. Boston drivers spend the most time driving in congestion.
The challenge for Boulder is housing affordability, according to the report. Measured by median metro area home values, Boulder has the third highest housing costs among its peer communities, behind the San Jose and San Francisco regions and just ahead of Seattle and Boston. But the city is not alone – its peer communities face the same challenge. All but one of the metro areas studied for this report ranked among the 25 most expensive housing markets in the U.S.
For the full Boulder Innovation Venture Report, visit: http://issuu.com/boulderchamber/docs/innovation_venture_report_v26?e=33607933/61913820
Denver International Named Top Airport in America
Denver International Airport ranked No. 1 in the U.S, reports international air transport researchers at Skytrax in the 2018 annual airport awards.
In a separate Skytrax ranking of regional airports by continent, Denver is the No. 1 airport in North America and No. 5 regional airport in the world.
More than 13 million international air travelers around the world surveyed for the awards voted Singapore Changi the top airport in the world for the third year in a row. Denver – ranking 29th in the world – claimed the top ranking spot for U.S. airports. Denver is followed by No. 34 Cincinnati, No. 48 Houston International, and Nos. 50 and 51 Atlanta and San Francisco, respectively.
Travelers were surveyed from August 2017 to February 2018, covering 550 airports worldwide and evaluating traveler experiences including check-in, arrivals, transfers, shopping, security, and immigration through to departure at the gate.
But that’s not all. In a separate airport satisfaction survey conducted by J.D. Power Ratings in 2017, DIA pulled a score of 763 out of 1,000, ranking fourth. Orlando International Airport ranks highest in satisfaction among mega airports, with a score of 778. Detroit Metropolitan Wayne County Airport (767) ranks second, and McCarran International Airport and Phoenix Sky Harbor International Airport (765) tied for third.
The survey found overall passenger satisfaction with North American airports has reached an all-time high.
“Capacity has become a huge challenge for North American airports, with many reporting 100% of available parking spots being filled and large airports, such as Orlando International, setting passenger volume records each month for more than three years straight,” said Michael Taylor, Travel Practice Lead at J.D. Power. “Despite these difficulties, airports are responding with new technology and old-fashioned personal skills to win over harried travelers. These range from smartphone apps that tell travelers where to find a parking spot to therapy dogs—and in one case, a therapy pig—mingling with travelers to relieve stress and improve the overall airport experience.”
Nearly every U.S. airport – faced with high passenger capacity and ongoing construction projects to address increased demand – is using technology to help address these issues. Sacramento International Airport developed a smartphone app that tells travelers where to find a parking spot, and airports nationwide have invested heavily in improving phone-charging stations and internet access in their terminals.
The J.D. Powers study, now in its 12th year, measures overall traveler satisfaction by examining six factors: terminal facilities; airport accessibility; security check; baggage claim; check-in/baggage check; food, beverage and retail. It is based on responses from 34,695 North American travelers who traveled through at least one domestic airport with both departure and arrival experiences during the past three months.
For more on the Skytrax Awards see: http://www.worldairportawards.com/Awards/world_airport_rating.html and http://www.worldairportawards.com/Awards/worlds_best_regional_airports.html
For the full J.D. Power ratings see: http://www.jdpower.com/press-releases/jd-power-2017-north-america-airport-satisfaction-study
Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Monday, May 14th, 2018 at 2:49pm.