The health of the Commercial Real Estate market depends largely on an area’s economic vitality. We know that increased interest rates, inflated construction material costs, high property taxes, utilities, insurance and service rates, a weak construction labor market, rising gasoline prices, dismal weather, expensive advertising rates, high health care costs, out of control national and trade deficits, uncertainty over the war in Iraq, and American jobs being relocated overseas can cripple a Commercial Real Estate market.

On December 8th, 2004, the Free Press reported that the Corporation for Enterprise Development, out of Washington, D.C. gave Vermont a 2.58 out of a 4.0 for economic vitality. Business vitality got a “D” – competitiveness of existing businesses got a “C” - new business creation garnered a dismal “D” - development capacity got a “C” – financial resources a “C”, and infrastructure resources an “F” – OUCH!

And yet Chittenden County’s Commercial Real Estate market seems to be holding steady. According to Allen & Brooks in their 2004 Commercial Real Estate Report occupancy rates are “stable and strengthening”. At a recent Burlington Business Association Waterfront Action Group, twenty folks told me that their waterfront businesses did well in 2004 despite the wet weather, and they all felt confident heading into 2005.

I too am witnessing lower vacancy rates, more business expansions, increased memberships in business organizations, more available venture capital and business start-ups. Parking spaces are full, people are shopping, going to the movies, standing in lines at restaurants, attending cultural events in record numbers, volunteering more on Boards, spending their money locally, and making bigger contributions to non-profits. Winooski is exploding, the Burlington Downtown & Historic Waterfront is blossoming, UVM and Champlain College are expanding, Williston is becoming a little City, South Burlington is creating a Town Center, and Essex Junction has major plans for their Expo.

Why is Chittenden County bucking the national trend? Because Chittenden County is a great place to do business.

CFED did recognize Vermont with an “A” for Performance Index. We rank high on earnings and job quality, economic opportunity for residents, employment, and quality of life. They recognized that we have great people to employ, we educate our children very well, control air pollution, provide health insurance to our low income children, and have the least amount of toxic releases per capita.
During the past few years, the City of Burlington has been recognized nationally as:

** The #1 City To Have It All

** Best Standard Of Living

** One Of The Best Places to Retire

** One Of The Ten Great Places To Raise a Family

** Awarded Dream Town Status

** Ranked One of The Top Cities to Start a Business

** Ranked One of The Most Livable Cities in America

** Garnered The Great American Main Street Award

National Geographic a while back named Vermont as one of the Top Fifty Places in the World. It would take pages to list all the kudos our little State has received in the past few years. This summer, Self Magazine rated Burlington as the #1 City for Female Sexual Health – go figure.

Vermont is a feel good place. That is what makes us successful. People love being here. They take pay cuts, leave other places and set up business right here in Vermont. Everyone knows that the Green Mountain State is not and never will be like the rest of the USA, and most of us like it that way.

It looks as if the Chittenden County Commercial Real Estate Market is headed toward a pretty fine year if local indications play out. I need to remind myself from time to time that the fate of my future lies squarely in my own backyard. If we can support one another locally, stay active in community affairs, and protect those things that make Vermont unique and special then we will continue to endure and perhaps even thrive during the darkest of days.
Happy 2005!

Melinda L. Moulton
Redeveloper of the Main Street Landing
Board Member of BBA, VBSR, VPIRG, the YMCA,
Chair of the Intervale Foundation
Chair of the Global Communities Initiative