Rental rates are down and vacancies are up in parts of the Colorado Springs commercial real estate market, according to Transwestern, a national real estate group made up of a collaboration of local Realtors.
According to the latest market report, only the retail segment showed a drop in vacancies and a rise in overall absorption, while rents dropped in the office and industrial segments of the commercial real estate marketplace.
Here’s the breakdown, according to Transwestern:
- Office space: Rental rates are down to $16.71 a square foot on average; vacancies are now at 12.2 percent and year-to-date absorption stands at 315,440 square feet.
The largest block of available space is at 2424 Garden of the Gods Road, with 135,000 square feet available, followed by 132,000 square feet at 1005 Woodmen Road.
- In the industrial market space, rates now average $6.21 a square foot, down in July. Vacancies are up to 10.59 percent and year-to-date absorption is down to 475,000 square feet.
Vacancies are lowest in the southwest market, where only .44 percent of the buildings are available for lease, the industry group said. In Teller County, all the available industrial space is currently leased.
- In the retail market, rental rates dropped to $11.67 triple net, direct vacancies were down to 5.18 percent and overall absorption increased to 385,687 square feet.
Downtown’s overall vacancy rate is at 2.75 percent and the highest direct vacancy rate is more than 10 percent in the eastern part of the city, according to the report.