(To read more on the industrial market, click here.)
COLORADO SPRINGS-Industrial absorption in the Colorado Springs showed its first healthy gain in four years, pushing its vacancy rate back into single digits, according to according to a recent report by Grubb & Ellis. The overall vacancy rate is now around 8%.
"After four years of anemic performance, speculative absorption made a healthy reappearance during 2005," states the report. "The market's overall absorption rate of 800,000 sf was boosted by 200,000 sf of owner-developed buildings."
However, it was speculative absorption that set the tone for the industrial market's recovery, Grubb & Ellis notes, with 600,000 sf of spec industrial properties occupied during 2005. More than 150 industrial leases were negotiated, ranging from 800 sf to 100,000 sf. Seven of the top leases totaled 367,000 sf, the report notes. The remaining activity was concentrated in the smaller upscale office/warehouse buildings, Grubb & Ellis says.
Much like the office market, the industrial market is benefiting from growth from defense contractors. "Homeland Security and defense-related contracts are at record levels for the area, and ancillary suppliers to these contract recipients will be hard-pressed to find suitable space for support operations," states the report.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
