CBRE has published research figures on the Colorado Springs office, industrial, retail and multifamily markets for H1 2024:
Colorado Springs Office Figures H1 2024
- The Colorado Springs office market saw positive 159,000 sq. ft. of total net absorption in the first half of 2024. This was a significant improvement from the negative 20,000 sq. ft. of total net absorption seen in H2 2023 and the negative 154,000 sq. ft. seen in 2023.
- Direct vacancy fell 20 basis points (bps) in H1 2024 and decreased 50 bps year-over-year to 8.6%. Vacancy remained highest in the Northwest submarket, despite falling 40 bps from the end of 2023 to 16.3% in H1 2024. The CBD submarket saw vacancy rise 60 bps to 10.4% during the first half of the year.
- The direct average asking rent increased 4.1% compared to H2 2023, hitting $17.32 per sq. ft. NNN. Year-over-year, the average asking rent increased 2.2% from $16.95 per sq. ft.
- No new projects have broken ground since the last delivery occurred in H1 2023 in the Northeast submarket.
- Total sales volume for the year’s first half was $22.9 million with an average price per sq. ft. of $117. Year-over-year sales volume decreased 29.7% as investors showed a tepid appetite for office assets.
Colorado Springs Industrial Figures H1 2024
- 477,000 sq. ft. of positive net absorption was recorded in H1 2024, a more than four-fold increase year-over-year from the 87,000 sq. ft. from a year earlier.
- The new development pipeline remained robust with over 300,000 sq. ft. of industrial space under construction and 456,000 sq. ft. having delivered in the first half of 2024.
- The average direct asking rent remained relatively flat year-over-year at $10.00 per sq. ft. NNN.
- Total availability increased 60 basis points (bps) year-over-year to 5.2%, while direct vacancy also rose 60 bps year-over-year to 3.4%.
- Sales volume for H1 2024 exceeded $51.5 million with 20 properties trading hands, marking a 20.9% decrease compared to H2 2023’s total volume.
Colorado Springs Retail Figures H1 2024
- Just over 52,000 sq. ft. of positive net absorption was recorded in the first half of 2024, marking a 4.5% increase compared to the first half of 2023.
- The average asking lease rate increased 9.7% year-over-year to $17.37 per sq. ft. NNN to finish off the first half of 2024.
- Total availability rate in H1 2024 dropped 200 bps year-over-year to 5.7% while direct vacancy decreased 10 bps year-over-year to 4.8%.
- New development remained active with over 172,000 sq. ft. of retail space under construction and 8,600 sq. ft. having delivered in H1 2024.
- Overall sales volume for the first half of 2024 totaled $133.9 million, a notable 33.2% increase from the $100.4 million recorded during the same period a year earlier.
Colorado Springs Multifamily Figures H1 2024
- The overall occupancy rate decreased 40 basis points to 92.4% at the end of H1 2024. The historical H2 occupancy from 2000-2019 has averaged 93.4%.
- The average asking rent decreased to $1,487 per unit or $1.75 per square foot (sq. ft.), down approximately $29 per unit from year-end 2023 and down $42 per unit year-over-year.
- Development activity continues to increase. At the end of H1 2024, there were more than 6,880 units under construction spread across 29 properties.
- 2,004 units delivered in H1 2024, pushing trailing 12-month deliveries to 5,842 units. This was the most deliveries recorded in a 12-month period and marked a 10.6% inventory increase.
- Net absorption was positive 1,618 units in the first half of 2024 and 4,912 units over the past 12 months. This was the highest level of absorption on a trailing 12-month basis.
- $102.4 million of investment volume was recorded in H1 2024, up 5.3% from H2 2023 but down 12.1% year-over-year.
