"In 2002, Denver's economy was a product of war, terrorism, fear, drought, rationing, wild fires, bankruptcies, foreclosures, recession, depression, unemployment, and vacancy," Conway told the group gathered at the Denver Athletic Club. " In 2003, our real estate market performance will be shaped by our strength, commitment, integrity, peace, prosperity, faith, hope, patience, hard work, humility, confidence, and humor.

"The year 2002 was an economic disaster, but there are some great opportunities right now for real estate entrepreneurs because we have 19.3 million sf of existing office space to fill up along with 15.5 million sf of industrial space, 7.4 million sf of retail space, 13,600 vacant apartments, and there are 20,600 residential units waiting to be sold," he adds. "Our challenges have never been greater."

Last year, the metro Denver area lost nearly 40,000 jobs, he notes, only the third time in the last 32 years that the area lost jobs on an annual basis. The other two times were in 1986 and 1987, following the energy crash, a change in tax laws, and when the market was cursed with over-building.

In those two years, the annualized losses accounted for 9,000 each year. This year's loss was 344% greater--the worst in recent history.

"This job loss in 2002 should be contrasted to the last 10 years during which we averaged annually an increase of 41,000 jobs, a swing in one year of almost 80,000 jobs," he says. "Other indexes that illustrate metro Denver's lackluster performance in 2002 include an unemployment rate of 5.2%, which is double the rate in 2001. There were 6,574 foreclosures last year, which is second only to 1988 when we had 17,122 foreclosures."

But he's optimistic about Denver's near-term future.

"Vital characteristics of our success include our strong and diverse economy with growth industries well represented, great public and private leadership, a wonderful environment with great weather for our winter and summer tourists, and responsible public works projects including the convention center expansion; future light rail construction; I-25, C-470, and Northwest Parkway construction, which will greatly improve access; and renewed interest in energy and natural resource exploration, which will certainly benefit Colorado, and Denver specifically," he says. "Factors that are especially encouraging to real estate are a low inflation rate and prudent lending…Prospects for commercial real estate absorption will grow as Denver re-establishes its economic expansion."