Commercial real estate figures in the second quarter showed some mild improvement, according to a report from Hoff & Leigh.
Citywide vacancy rates dropped fractions of percentage points in office, industrial and retail markets. Asking lease rates increased slightly in retail and industrial markets, but fell slightly for office spaces.
Hoff & Leigh reported an overall office vacancy rate of 14.44 percent in the second quarter, down slightly from 14.66 percent in the first quarter.
“Even with the small signs of progress, the Colorado Springs office market remains flat,” according to the report.
To recover to average vacancy levels of 11 percent, the market would have to absorb 1 million square feet.
Areas with the lowest vacancy rates included: the west (5.12 percent), downtown periphery (6.59 percent) and the downtown core (6.34 percent).
Areas with the highest office vacancy rates included: the southeast (22.31 percent), north (21.16 percent) and Monument (18.38 percent).
Average asking rates fell from $11.51 to $11.06 per square foot.
The citywide industrial vacancy rate fell from 10.68 percent in the first quarter to 10.58 percent in the second quarter. The highest vacancy was in the north part of town, where 14.61 percent of industrial space is unoccupied. The east part of the city had the lowest vacancy rate – 5.94 percent.
Industrial rents averaged $6.51 per square foot, up slightly from $6.45 in the first quarter.
The citywide average vacancy rate also fell slightly from 9.85 percent in the first quarter to 9.52 percent in the second quarter. The rate was highest in the southeast part of the city at 16.92 percent and lowest in Monument and the west at 3.06 and 3.21 percent respectively.
Average retail asking rates rose from $12. 69 per square foot in the first quarter to $12.80 in the second quarter.