Two Colorado-based real estate firms reported earlier this month that the Colorado Springs commercial market continued its recovery through the third quarter of 2016.
Denver-based real estate company Transwestern and Colorado Springs-based real estate company Turner Commercial Research each published reports earlier this month on the state of the commercial real estate market in Colorado Springs.
Each of the third-quarter reports seemed to paint an optimistic picture of the commercial market as a barometer of an increasingly strong local economy.
“Historically, Colorado Springs lags behind national recoveries; however, it appears that we are seeing a local recovery taking hold,” according to Turner Commercial Research’s Commercial Availability Report. “The Colorado Springs area is finally entering a period of sustainable recovery and growth.”
The following numbers are from the Transwestern report and compare third-quarter findings to data from the second quarter of 2016:
- rental rates are up at $11.95
- direct vacancy rates are down by 5.22 percent
- year-to-date absorption is at 378,739 square feet
- rental rates are up at $6.36
- direct vacancy rate are up by 9.2 percent
- year-to-date absorption is at 58,282 square feet
- rental rates are down at $16.70
- direct vacancy rates were down by 11.71 percent
- year-to-date absorption was at 142,060 square feet
The Transwestern report attributed this growth to declining local unemployment rates, job growth, increases in median household income and home price, as well as a generally stronger economy.
Here is a sector-by-sector recap of commercial property sales for the first three quarters of 2016:
- 58 retail building sales totaling 450,715 square feet and costing $82.5 million (average $138 per square foot);
- 38 industrial sales totaling 1.6 million square feet and costing $97.1 million (average $61 per square foot);
- 52 office sales totaling 749,526 square feet and costing $60 million (average $80 per square foot).