Denver, Colorado is a city that has been experiencing significant growth in various industries, setting it apart from other cities. In CNBC’s quarterly Cities of Success series, Denver is highlighted as a city with a thriving business scene and an entrepreneurial spirit that has attracted capital, companies, and employees. This growth can be attributed to several factors, including a strong military presence, leading universities, and a focus on high-tech industries such as aerospace and quantum tech.
One of the industries that have contributed to Denver’s success is the cannabis industry. Since the legalization of recreational marijuana in 2014, legal marijuana sales have added a staggering $15 billion to Colorado’s economy, with nearly $3 billion coming from taxes. Denver has benefited significantly from this industry, with marijuana sales surpassing $6 billion since 2014. However, there has been a recent decline in Denver’s cannabis revenue following the pandemic, with a 24% drop compared to 2021. Despite this dip, industry experts predict a return to growth, and the governor’s Office of State Planning and Budgeting forecasts a 16% revenue increase for the state overall in 2024. The cannabis industry continues to hold long-term potential for Denver.
Another thriving aspect of Denver’s economy is its professional sports scene. The city’s four major league franchises – the Broncos, Nuggets, Rockies, and Avalanche – collectively generated $1.159 billion in 2022. This places Denver among the top eight earners in professional sports nationwide, competing with cities traditionally recognized as sports powerhouses like Chicago, New York, and Los Angeles. Analysts predict a combined revenue surge of more than 37% by 2030 for Denver’s major franchises. Beyond professional teams, the University of Colorado Boulder’s football program made headlines with the hiring of legendary NFL star Deion Sanders as head coach. This strategic move resulted in a big financial impact, with ticket sales skyrocketing by over $20 million, doubling the previous year’s figures. Sanders’ influence extends beyond the stadium, with Visit Boulder estimating his economic impact on the region at $113.2 million.
Denver’s famous Red Rocks Amphitheatre is not only a legendary music venue but also a major economic force. The 9,500-seat venue generates a massive $717 million in regional economic output annually. Red Rocks ranked as the fourth-busiest entertainment venue globally in 2023, just behind New York City’s Madison Square Garden. Experts attribute this success partly to the venue’s unique geography and location at 6,450 feet above sea level, creating unparalleled acoustics. The venue’s concert season is also remarkable, with a concert being held nine out of every 10 days during the 2022 season. Events at Red Rocks support an estimated 7,300 jobs and generate a payroll of roughly $216 million annually. Out-of-state visitors attending concerts in 2023 injected over $300 million into the region, benefiting hotels, restaurants, transportation, and retail sectors.
While Denver’s tech boom has been a significant contributor to its economic growth, the city stands out because it continues to see growth in other areas as well. The thriving cannabis industry, professional sports scene, and the economic force of Red Rocks Amphitheatre all contribute to Denver’s success as a city. Despite challenges like a growing homeless population, affordability issues, and infrastructure strain, Denver remains a city that sets itself apart with its diverse and thriving businesses.
