According to CBRE Research, Colorado Springs continues to boast low industrial availability amidst economic uncertainty, while healthy market fundamentals in Northern Colorado persist indicating continued activity.
Colorado Springs Industrial Figures H2 2023
- Just under 50,000 sq. ft. of positive net absorption was recorded in 2023, a significant 94.0% decrease year-over-year.
- New development remained robust with over 455,000 sq. ft. of industrial space under construction and 109,000 sq. ft. having delivered in the second half of the year.
- The average direct asking rent remained relatively flat year-over-year at $10.05 per sq. ft. NNN.
- Total availability increased 100 basis points (bps) year-over-year to 5.1%, while direct vacancy remained the same year-over-year at 3.3%.
- Sales volume for H2 2023 exceeded $65.1 million and pushed 2023 total sales volume to over $109 million, a 51% decrease compared to 2022’s total volume.
Northern Colorado Industrial Figures H2 2023
- Just under 585,000 sq. ft. of positive net absorption was recorded in 2023, an annual total that was driven by build-to-suit (BTS) activity and significant tenant move-ins.
- The average direct asking rent increased by a solid 2.7% year-over-year to $11.78 per sq. ft. NNN as of year-end 2023.
- Total availability and direct vacancy increased 90 basis points (bps) and 110 bps year-over-year to 7.0% and 5.1%, respectively.
- Over 4.2 million sq. ft. of industrial space was underway as of year-end. The total is heavily skewed by Amazon’s 3.9 million-sq.-ft. facility under construction in the I-25 North submarket.
- Overall sales volume in 2023 reached $152.0 million, a notable 52.8% year-over-year decrease caused by continued instability in the macroeconomic environment and the rising cost of capital.
