Colorado Springs Office Figures H2 2023

February 5, 2024 5 Minute Read

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      The Colorado Springs office market saw stabilizing fundamentals with 66,000 sq. ft. of positive direct net absorption occurring in the second half of the year. This was an improvement from the negative 108,000 sq. ft. seen in H1 2023 and brought the total for the year to negative 41,000 sq. ft. of direct net absorption.

      Direct vacancy fell 30 basis points (bps) in H2 2023 but increased 20 bps year-over-year to 8.7%. Vacancy remained highest in the Northwest submarket, falling to 16.7%, while the CBD submarket saw vacancy rise 190 bps since the end of 2022.

      The direct average asking rent decreased 1.8% compared to H1 2023, hitting $16.63 per sq. ft. NNN. Year-over-year, the average asking rent was largely unchanged from $16.65 per sq. ft.

      No new projects have broken ground since the last delivery occurred in H1 2023 in the Northeast submarket.

      Total sales volume for the last half of the year was $21.4 million with an average price per sq. ft. of $137. Year-over-year sales volume decreased 75.7% as investors showed a tepid appetite for office assets.