Second quarter commercial real estate figures have taken the air out of some sails.
While the news wasn’t bad, it wasn’t good either. Gains were minimal and the market seemed to take a step back for every one forward, according to reports from Cushman & Wakefield Colorado Springs Commercial, Sierra Commercial Real Estate and Hoff & Leigh.
“The velocity of investor and tenant interest in Colorado Springs to start the year initially lead us to believe that 2012 was going to be the tipping point year to quickly rebound this market back to 2005-2008 numbers,” according to the report from Colorado Springs Commercial, which concentrates on commercial office space.
That’s not how the year turned out so far.
The office market was a “mixed bag of gains and losses,” according to Sierra Commercial Real Estate. The retail market saw overall occupancy decline. Even the industrial market, which saw “significant gains in the first quarter, began to cool during the second quarter.”
While all brokerages say the year started off full of optimism, that enthusiasm is waning.
“For no specific reasons, much of the potential and projected activity stalled by the time we were through with the first quarter,” according to the same report.
Reports from the different brokerages differ. Researchers in those firms have explained that the discrepancies come from a difference in how they categorize space. Some buildings contain both office and possible warehouse space. Some firms classify those buildings as office and some deem them industrial spaces.
Overall vacancy and rent figures from all three brokerages are listed below.
Sierra: 17.06 percent
Colorado Springs Commercial (Class A only): 26.37 percent
Hoff& Leigh: 14.4 percent
Office asking rent
Sierra: $11.01 / SF
Colorado Springs Commercial (Class A only): $12.87 / SF
Hoff & Leigh: $11.06 / SF
Sierra: 10.21 percent
Hoff & Leigh: 10.58 percent
Industrial asking rent
Sierra: $5.61 / SF
Hoff & Leigh: $6.51 / SF
Sierra: 10.98 percent
Hoff & Leigh: 9.52 percent
Retail asking rent
Sierra: $12.21 / SF
Hoff & Leigh: $12.80 / SF