Recent commercial office space sales should spur lower vacancy rates and rising lease rates, according to reports from Cushman & Wakefield Colorado Springs Commercial, a realty group.
More than 700,000 square feet of office space has sold to user owners in Colorado Springs over the last two years, according to the company’s report.
Some notable sales include El Paso County’s purchase of the 300,000-square-foot office building along Garden of the Gods Boulevard. The Pikes Peak Library District purchased a 113,000-square-foot office building near the Chapel Hills mall. The Space Foundation, USA Volleyball and Braxton Technologies also purchased large facilities recently, according to the report.
Sale prices have ranged between $35 and $85 per square foot.
Cushman & Wakefield also reported that there are another 500,000 square feet of offices under contracts with sales expected to go through within the next few months.
That will take “an additional chunk out of the market vacancy and limit options for those tenants in the market to lease space,” according to the report.
That suggests the market is tightening. Some owners have put their properties on the market, another indication that the market is shifting, according to the report.
These changes could limit available space as the job market returns, causing lease rates and sales prices to go up.
However, vacancy rates are still high.
Submarket Total square footage Vacancy rate Lease rate
North I-25 6,423,689 25.51 percent $11.68/sf
Airport 1,506,990 47.68 percent $12.19/sf
Buiness 1,803,132 13.93 percent $14.75