Corporate Office Properties Trust, Colorado Springs’ largest commercial real estate investor, has purchased the 61,504-square-foot R.T. Logic building and 5 acres of adjacent land for $12.5 million.
The facility at 12515 Academy Ridge View was built during 2005.
R.T. Logic, a wholly owned subsidiary of Integral Systems, Inc. has occupied the building since it opened. The transaction was handled internally by the buyer and the seller.
“The building is fully leased for a long term, at current market rates, making it a strong addition to our defense contractor strategy,” said COPT Vice President George Swintz.
In related news, the real estate investment trust’s local property management department has moved into Patriot Park VII, which was built on speculation. So far, the 89,000-square-foot building remains available.
Office vacancies slow
National headlines about the commercial real estate market tend to be pretty gloomy. That said, even national Web sites like GlobeSt.com admit that conditions vary from one region to another.
While “commercial real estate is clearly in decline,” based on the Federal Reserve’s latest Beige Book release, industry executives said “there are variations in regional and local markets that point to some — albeit — faint signs of life.”
Sierra Commercial Real Estate research manager Ben Lowe agrees.
In completing his second quarter 2009 MarketView analysis, he found that vacancies increased for the seventh straight quarter to 17 percent, and that lease rates will stay put at about $12 per square foot.
The report did offer some upbeat sections, however.
“Glimpses of recovery can be found in the office market by examining the current dynamics of the Class A market. While year-to-date absorption … has been negative 231,709 square feet, only 12,211 square feet of that occurred during the second quarter,” he said, adding that a slowdown in occupancy loss, along with most new construction nearing completion, “offers hope that upward vacancy rate pressure will begin to ease as less unleased space is delivered to the market.”
Specifically, the Class A commercial office market — one which features newer buildings with modern amenities — is primed to recover fastest.
The North Interstate 25 corridor has posted 19,075-square-feet of positive absorption for the quarter. Downtown recorded a 10.5 percent vacancy rate, while the southeast submarket, like the North I-25 corridor, maintained 29 percent-plus office vacancies.
WSi Healthcare Personnel Inc., a staffing service provider, has moved its Colorado Springs offices into 3,025 square feet at 8540 Scarborough Drive.
The company is headquartered in Denver and also operates in Salt Lake City.
Steve Bach and Mike Helwege represented WSi, and Brian Wagner of Sierra Commercial Real Estate represented the owner, Research One LLC.
Heating & Plumbing Engineers has leased 5,000 square feet of warehouse space at 4205 High Country Road.
Bach and Helwege represented HPE, and Charley Conrad represented the landlord, Cobra Ltd. LLC.
Corey Peifer Properties LLC has purchased a 1,500-square-foot industrial condominium at 3788 Northpark Drive for $185,220.
R.D, Trinidad and Tim Leigh of Hoff & Leigh represented the sellers, John and Shelly Mollica, as well as the buyer.
Chris Lang leased 1,221 square feet and Brandon Bishop leased 1,200 square feet of office/industrial space at 3645 Jeannine Drive.
Lester Colodny of Hoff & Leigh represented both parties in both transactions.
John Rodgers of Peak Commercial Properties has leased 2,540 square feet of office/industrial space at 2934 Janitell Road.
Mike Stuard of Hoff & Leigh represented the owner, Bates Leasing Co. Ltd., and Rodgers represented himself.
Becky Hurley covers real estate for the Colorado Springs Business Journal.