The Colorado Springs Office Market will have another strong year in 2020 buoyed by major employment announcements and increased demand for quality space.
In the past couple of years, the Colorado Springs market has experienced meaningful and impactful growth as major employers have made long term employment and facility commitments in the area. These announcements include: Centura Health’s 57- acre land purchase at the SE corner of I-25 and Interquest Parkway to build a 1 million SF state- of-the-art hospital; ENT Federal Credit Union’s 20+ acre land purchase just north of I-25 and Interquest Parkway with construction underway on a new 300,000 SF headquarters facility; In-N- Out Burgers headquarters relocation from California on a 20+ acre site on Interquest Parkway east of I-25 with construction underway on a 100,000 SF distribution facility and a 150,000 SF office building; Amazon’s new 70,000 SF distribution facility with plans for up to a 4 million SF delivery center near the Colorado Springs Airport.
The impact will drive all facets of real estate into the foreseeable future, including the overall Office market. Also, if Colorado Springs is named the permanent home of Air Force Space Command (which will become the new Space Force), this will also have a large positive effect on demand in the Southwest submarket and will likely spur new office construction in the areas near Peterson and Schriever Air Force Bases. Expect positive growth in lease rates, absorption, occupancy, and construction with vacancy rates declining further towards market equilibrium.