Sierra’s Q3 report shows optimistic view of the Springs

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Sierra Commercial Real Estate Inc. released its third-quarter report Thursday, showing optimistic views of the retail, office and industrial real estate markets.

The third iteration of Market View 2013 illustrates negative trends in both vacancy and leasing cost rates, as well as positive views of leasing activity throughout the past three months.

RETAIL

According the report, Colorado Springs retail real estate is riding high.

Sierra reports that in the third quarter, vacancy rates are down more than 11 percent and lease rates are down more than $11, while net absorption is up more than 85,000 and lease activity is up 440,000.

“As anticipated, the retail market in Colorado Springs experienced significant gains during the third quarter of 2013 after recording a relatively calm first half of the year,” according to the report.

OFFICE

Sierra reported that office real estate in the Springs area is experiencing a healthy season.

The organization reports that vacancy rates are down 15 percent, lease rates are down more than $10 and net absorption was up more than 410,000. However, lease activity within this sector suffered a blow, bringing its rate down to a little over 942,000.

“The first three quarters of 2013 have demonstrated that the Colorado Springs office market has made further gains during the current recovery cycle that began in 2010,” according to Sierra’s report.

INDUSTRIAL

Although industrial leasing statistics show that leasing activity is down, the deals are still there for those looking for industrial space.

The Sierra report shows that vacancy rates are down more than 9 percent as well as lease rates, which have seen an average reduction of more than $6 this quarter. Net absorption is also up for the year at 206,129, but lease activity is down to 757,361.

“The Colorado Springs industrial market continues to show improvement through the first nine months of 2013, with additional gains anticipated during the fourth quarter and into 2014,” according to the report.

For a more detailed examination of this quarter’s Market View report, pick up a copy of the Business Journal on Oct. 25.