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Colorado Springs Office Figures H2 2022

February 8, 2023

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  • The Colorado Springs office market continued to improve in the 2nd half of 2022, ending the year with 142,200 sq. ft. of positive net absorption—an increase of 21.6% from the 117,000 sq. ft. of positive net absorption seen in H1 2022.
  • Direct vacancy decreased 40 basis points (bps) in H2 2022 and 120 bps year-over-year to 8.5%. Vacancy is highest in the Northwest submarket at 19.9%, while the Greater Downtown submarket saw vacancy decrease to 4.0%.
  • The direct average asking lease rate decreased 0.1% year-over-year, reaching $16.65 per sq. ft. NNN. The West Side/Manitou submarket has the highest average lease rate at $19.66 per sq. ft. NNN.
  • The development pipeline has increased to 60,000 sq. ft. Two properties delivered in H2 2022, including the 65,000-sq.-ft. Interquest Medical Office Building which has just 16,200 sq. ft. available for lease. 
  • Investment sales decreased 35.8% compared to H1 2022’s level. Total sales volume was $86.9 million with an average price per sq. ft. of $209.43. After falling 53.5% year-over-year, 2022 sales volume was on par with the five-year historical average seen in 2016-2020.