Colorado Springs, CO Economic Overview
Colorado Springs is the county seat of El Paso county, and, with over 456,000 residents, is the second most populated city in Colorado, right behind Denver. The Colorado Springs Metropolitan Statistical Area has over 712,000 people, placing it in the top 80 MSAs for the country and lies along the Front Range of Colorado, fronting the Rocky Mountains and is also in the Pikes Peak Region of Colorado. Home to the United States Air Force Academy, the defense industry, high-technology, and tourism are the primary drivers of the commercial real estate market in Colorado Springs.
Ranked by Forbes as the 11th-most affordable city in the U.S., the innovative thinking of Colorado Springs has attracted not only the U.S. Air Force to the economy of Colorado Springs, but also numerous other companies, including USAA Insurance, Progressive Insurance, Hewlett Packard Enterprise, Lockheed Martin, and Boeing.
With a median household income of over $56,000 per year and a job base growing by over 3% annually, the City of Colorado Springs has received numerous awards recognizing its business-friendly environment, such as #1 Mid-Sized American City for Human Capital and Lifestyle by fDi Intelligence, the #2 Most Desirable Place To Live by U.S. News & World Report, the #2 Best City for Veterans by Livability.com, and was included in the Top 10 Hottest Real Estate Markets to Watch.
Colorado Springs, CO Commercial Real Estate Market
The growth of the Colorado Springs commercial real estate market is driven by the military, high-technology, clean technology, tourism, along with an increasing number of businesses in the information technology, sports, customer service, financial services, medical innovation and technology, semiconductor manufacturing, and specialty metal manufacturing. All in all, Colorado Springs boasts one of the most diverse commercial real estate markets in the west and midwest.
Amongst its eight submarkets, there is nearly 34 million square feet of industrial inventory in Colorado Springs. The North, Northeast, and Southeast industrial submarkets account for nearly two-thirds of the industrial space in the market with vacancy rates running just over 9%. With industrial vacancy rates in Colorado Springs dropping by almost 5% over the past few years, net absorption is running positive, while asking rents for industrial space in Colorado Springs have increased by nearly 20% over the last couple of years.
The Colorado Springs office market is characterized by positive net absorption, falling vacancy rates and relatively stable asking rents. With nearly 29 million square feet of office space spread across eight submarkets, Class B office space in the Colorado Springs metro area accounts for nearly 66% of the inventory, with nearly 19 million square feet available.
Colorado Springs was recently declared the #1 housing market in the United States by Market Watch, giving a clear indication of the future positive growth of the retail market in Colorado Springs. With nearly 41 million square feet of retail inventory among all seven submarkets, the average vacancy rate is just under 6% with only 162,000 SF of new retail product in the pipeline.
Colorado Springs, CO Office Rental Rates ($/SF/year)
Data provided by Yardi Matrix, for properties larger than 50K SF.
Colorado Springs, CO Office Sales
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Colorado Springs, CO Commercial Inventory Breakdown
Total: 14,721,110 SF
By square footage range:
- 50k to 100k SF: 4,676,312 SF / 31.77% of total office
- 100k to 500k SF: 9,320,712 SF / 63.32% of total office
- 500k to 1M SF: 724,086 SF / 4.92% of total office
- Class A: 4,607,258 SF / 31.3% of total office
- Class B: 8,777,299 SF / 59.62% of total office
- Class C: 803,828 SF / 5.46% of total office
Total: 4,943,140 SF
By square footage range:
- 100k to 500k SF: 2,323,221 SF / 47% of total industrial
- 500k to 1M SF: 2,619,919 SF / 53% of total industrial
- Class A: 2,412,740 SF / 48.81% of total industrial
- Class B: 2,530,400 SF / 51.19% of total industrial
Employment in Colorado Springs, CO
Job growth in Colorado Springs has increased by over 3.3%, with an unemployment rate of just under 4%. U.S. News & World Report ranks Colorado Springs as the 11th-Best Place to Live in the country. Just over 48% of the labor force works in management, education and training, administration, sales, and computer and mathematics.
Employment in Colorado Springs is amazingly diverse for a city of its size. Employers include Anser Corporation and Northrop Grumman Corporation in the aerospace and defense industry, Oracle America, Inc. and Akima, LLC in the information technology industry, USA Hockey and the U.S. Olympic Committee in the sports industry, T-Mobile USA and Xerox for customer service operations, Ford Motor Credit and T. Rowe Price Associates, Inc. for financial services operations, and Microchip Technology, Inc. and Cypress Semiconductors in the semiconductor manufacturing and R&D segment.
Education in Colorado Springs, CO
Public education in Colorado Springs is as diverse as its job market, with 10 school districts operating the city's 51 elementary, middle and secondary schools. In addition there are 29 private schools in Colorado Springs including the Colorado Springs Christian Schools, Hilltop Baptist School, and the Pikes Peak Christian School
Education is a top priority in Colorado Springs, with major emphasis placed on workforce development and training students to become productive members of the labor force. Over 36% of the residents in Colorado Springs hold a bachelor's degree or higher, which is 30% above the national average. The largest post-secondary schools by enrollment in Colorado Springs include the University of Colorado at Colorado Springs, Pikes Peak Community College, and the United States Air Force Academy.
Commuting Time in Colorado Springs, CO
The commute time in Colorado Springs runs just under 21 minutes, giving the city one of the quickest work day commutes of the entire metropolitan area and the county. Less than 2% of the work force has a super commute of 90 minutes or more, with over 10% of the work day drivers carpooling and nearly 6% choosing to work at home.
- Interstate 70 heading east-west and Interstate 25 heading north-south provide easy access to the state and surrounding markets;
- Bus service is provided by Mountain Metropolitan Transit;
- Colorado Springs Municipal Airport and is the second-busiest commercial service airport in the state, while Denver International Airport provides domestic and international connections and is the 18th-busiest airport in the world.
Colorado Springs Demographics
- Total Population450,000
- Male Population(49.9 %) 224,484
- Female Population(50.1 %) 225,516
- Median Age34.60
- Average Household Income$77,814
- Median Household Income$58,158
- Median Income Under 25$33,498
- Median Income 25-44$59,728
- Median Income 45-64$73,444
- Median Income Over 65$48,135
Residential Rents in Colorado Springs, CO
Just under 43% of the residents of Colorado Springs rent where they live, more than in the metropolitan area and the county. Apartment rents in Colorado Springs have increased over 6% the past year, with a one-bedroom unit renting for an average of $850/month, and a three-bedroom apartment going for $1,450/month.
The most expensive neighborhoods for rentals in Colorado Springs are Northgate, Briargate, and Northeast Colorado Springs, while the lease expensive areas to rent in are Central, Southeast, and East Colorado Springs.
Colorado Springs, CO Average Rental Price, September 2019
- $ 1,085/mo
- Studio: $ 687
- 1 Bedroom: $ 956
- 2 Bedrooms: $ 1,168
Colorado Springs, CO Rent Trends
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