Save this content for laterSave this content on your device for later, even while offline Sign in with FacebookSign in with your Facebook account Close

Colorado Springs' commercial real estate market shows signs of improvement

January 14, 2014 Updated: January 14, 2014 at 5:14 pm
0
Caption +
The combined vacancy rate for the commercial real estate market fell to 11.1 percent in the fourth quarter of 2013.

The local commercial real estate market improved late last year, but it still has far to go to reach pre-recession levels, according to a report Tuesday by Turner Commercial Research of Colorado Springs.

The combined vacancy rate for the three major sectors of the commercial market - offices, shopping centers and industrial buildings - fell to 11.1 percent in the fourth quarter of 2013, down from 11.9 percent from the same period a year earlier.

The 11.1 percent rate was the lowest for any fourth quarter since 2008, when it was at 9.9 percent. But it still didn't come close to the rate of 6.7 percent in 2006, Turner's report showed.

The falling rate hasn't been enough to encourage speculative construction of commercial projects, the Turner report said, yet it appears to have allowed landlords and building owners to boost rents.

The average combined asking rent was $9.80 per square foot in the fourth quarter, up from $9.57 during the same period in 2012. The average had been nearly $11 per square foot in late 2008.

Among other positive trends in the commercial market, about two-thirds of all building purchases last year were made by out-of-town investors, Turner's report showed; those purchases hit a seven-year high of $443.2 million.

Such purchases don't directly result in new jobs for the area, said Paul Turner, president of the research firm. But being on the radar screen of national investors could translate into employers taking notice of the Springs and considering the area for new or expanded operations, he said.

Other highlights of Turner's report include:

- An additional 801,577 square feet of commercial space was occupied - or absorbed - in 2013, up sharply from 152,572 square feet in 2012.

- The area's office vacancy rate of 12.8 percent in the fourth quarter was down from 14.5 percent a year earlier; it was the lowest fourth-quarter rate since 12.3 percent in 2008. Average asking rents of $10.12 per square foot, however, fell from $10.27 in the fourth quarter of 2012.

- The local shopping center vacancy rate declined slightly to 11.8 percent in the fourth quarter from 12.2 percent for the same period in 2012. Average asking rents rose to $12.80 per square foot in the fourth quarter from $12.34 a year earlier.

- The fourth quarter industrial building vacancy rate dipped to 9.3 percent from 9.4 percent a year earlier. The average asking rent of $6.48 per square foot in the fourth quarter increased from $6.12during the same period in 2012.

-

Contact Rich Laden: 636-0228

Twitter @richladen

Facebook Rich Laden

Register to the Colorado Springs Gazette
Incognito Mode Your browser is in Incognito mode

You vanished!

We welcome you to read all of our stories by signing into your account. If you don't have a subscription, please subscribe today for daily award winning journalism.

Register to the Colorado Springs Gazette
Subscribe to the Colorado Springs Gazette

It appears that you value local journalism. Thank you.

Subscribe today for unlimited digital access with 50% fewer ads for a faster browsing experience.

Already a Subscriber? LOGIN HERE

Wake up with today's top stories in your inbox

Wake up with today's top stories in your inbox

Already a print subscriber?
Already a digital subscriber?
 
This is your last FREE article for the month
This is your last FREE article for the month

Subscribe now and enjoy Unlimited Digital Access to Gazette.com

Only 99 cents for Unlimited Digital Access for 1 month
Then $2.31/week, billed monthly, cancel anytime
Already a print subscriber?
Already a digital subscriber?

 
You have reached your article limit for the month
You have reached your article limit for the month

We hope that you've enjoyed your complimentary access to Gazette.com

Only 99 cents for Unlimited Digital Access for 1 month
Then $2.31/week, billed monthly, cancel anytime
Already a print subscriber?
Already a digital subscriber?

 
articles remaining
×
Thank you for your interest in local journalism.
Gain unlimited access, 50% fewer ads and a faster browsing experience.