Market Insight
Despite the unprecedented times we have experienced over the last year, Colorado Springs continues to outperform quarters prior to the pandemic and current national averages. Investors have remained very interested in Colorado Springs, specifically in the industrial and office sectors. Within the first five months of 2021, $42 million worth of industrial assets have been traded. In the office market, developers have focused much of their attention to Denver and Boulder, but investors have been very active, with over $130 million in traded assets, which is the best quarterly performance since 18Q4. Lastly, despite the retail market being hit the hardest of all, Colorado Springs has continued to maintain its number of leasing tenants, thanks to fast-growing household incomes and diverse demographics.
Industrial Overview
The vacancy rate decreased to 4.7% and there was a positive net absorption of 7,900 square feet over the last 12 months. The average asking rental rates increased to $9.64 PSF. For the second quarter, there are 4,457,160 square feet still under construction. The large jump in square footage is due to the new Amazon Fulfillment Center being built near the Colorado Springs Airport.
Office Overview
The vacancy rate increased to 9.79% and there was a negative net absorption of 513,000 square feet over the past 12 months. The average asking rental rates increased to $22.77 PSF from $22.34 PSF, from Q1. For the second quarter, there are 567,011 square feet under construction.
Retail Overview
The vacancy rate increased to 5.9% and there was a negative net absorption of 246,000 square feet over the past 12 months. The average asking rental rates increased to $17.38 PSF from $17.22 PSF, from Q1. For the second quarter, there are 163,618 square feet under construction. All information was obtained using CoStar’s 2021 Market Reports. Give us a call if you would like a detailed report on a specific property.
Thrive News
We are very pleased to announce that, this quarter, we added three new team members to our Thrive family!
Tara Coble and Dani Gurnett have joined the team as Property Management Assistants, working directly with our Property Managers and tenants to create a more seamless experience.
Nolan Patterson has also joined our team as a Project Manager. He oversees construction projects to ensure they are done with quality workmanship and on time and budget.
We are excited to continue expanding our team, to enable us to better assist our current and future clients!
