Industrial Overview
The vacancy rate decreased to 4.4% and there was a positive net absorption of 130,000 square feet over the last 12 months. The average asking rental rates increased to $11.36 PSF. For the fourth quarter, there are 606,918 square feet still under construction.
Activity in the Colorado Springs industrial market has picked up in the past year. Demand has been concentrated in the Northwest Submarket where 62,000 SF has been absorbed in the past 12 months.
Office Overview
The vacancy rate stayed at 10.3% and there was a positive net absorption of 127,000 square feet over the past 12 months. The average asking rental rates increased to $22.63 PSF from $22.61 PSF, from Q3. For the fourth quarter, there are 0 square feet under construction.
Development activity has pulled back in Colorado Springs with no projects under construction as of the fourth quarter. To a certain degree, the city is in better shape than most comparable markets and has avoided the worst of the disruption that most other areas are facing due to changing office utilization patterns, and vacancies remain below the national benchmark of 13.9%. With no projects under construction, the market has no supply-side risk in the near term, which should help in keeping vacancies in check.
Retail Overview
The vacancy rate increased to 4.8% from Q3 and there was a negative net absorption of 35,200 square feet over the past 12 months. The average asking rental rates increased slightly to $20.89 PSF from $20.55 PSF, from Q3. For the fourth quarter, there are 236,413 square feet under construction.
The Colorado Springs retail market is projected to remain tight through 2025 due to limited new construction and
positive demand. Retail sales growth has outperformed in recent years, indicating that retailers are doing more
with less by focusing on efficiency in this continuously evolving sector.
THRIVE News
THRIVE assisted their clients in multiple closings this quarter. A couple of notable sales include:
· Assisting our client SERVPRO with the sale of their new 116,049 SF building at 21000 E. 32nd Pkwy in Aurora.
· The first sale of a luxury garage at My Car Barn, off Busch Ave.
Additionally, THRIVE brokers aided their clients in leasing spaces at numerous locations across Colorado Springs including:
· Representing both the Tenant (Springwood Cabinets) and Landlord (ListenUp) for a new lease at 888 E. Woodmen. Springwood Cabinets also worked with THRIVE to lease another location at 1460 Aviation Way.
· Bee Well Pediatrics also found a new home at 9362 Grand Cordera Pkwy. with the help of the THRIVE team.
Highlands at Briargate Updates:
Ground break is slated for Q1 of 2025 by Davis Development on 220 luxury apartments and 20+ luxury townhomes. Only two inline spaces are remaining.
