Industrial space was the only commercial real estate sector that saw growing occupancy numbers in the second quarter of 2011, according to a Hoff & Leigh Commercial Real Estate report released today.
The total vacancy in all regions of Colorado Springs for industrial space was 11.67 percent, according to the report.
Almost 40 percent of the industrial inventory is located in the city’s south submarket, where vacancy rates are 16.33 percent. While the rate is high, it’s down from the first quarter vacancy figures in that submarket. The first quarter vacancy rate in the south was 18.05 percent.
One other area of the city also saw big gains in the second quarter. The west submarket dropped from an 11.84 percent industrial vacancy to 7.72 percent, the lowest vacancy rate in Colorado Springs for industrial space. Much of that can be attributed to Goodwill Industry’s occupying 105,000 square feet at the former ITT Communications facility at 1460 Garden of the Gods.
While the south and west submarkets saw big gains in occupancy, the other four submarkets – east, downtown, north and central – all saw small declines in industrial occupancy figures.
Only two submarkets, the south and the east, saw rises in asking prices for leases. The south submarket saw prices rise 20 cents per square foot from $5.61 to $5.81. Rents were up four cents in the east during the second quarter. Otherwise, rates fell across the city.
The highest asking price for industrial space is in the north submarket, where it runs $8.61 per square foot.
Hoff & Leigh recently added a new research division and will be releasing quarterly reports on the retail, industrial and office commercial space.