Looking Ahead to 2020: Market Overview and Trends for the New Year
Last year was yet another banner year for the commercial real estate market in Colorado Springs, seeing steady growth and activity across
market sectors. As we look to 2020, what can be expected in the office, retail, and industrial markets? Read on for a multi-sector market overview, including current city information, contributing factors, and the growing industries that we are seeing on the Front Range. For more in-depth discussion of each sector, stay tuned for our next several posts where we dive into office, retail, and industrial separately for a closer look.
The population of El Paso County has grown to 714,398 people, with Colorado Springs comprising the majority of that number with 473,928 people at a median age of 34.6, according to the Economic Development Corporation. These numbers are up from 2018 as we continue to see Colorado Springs listed as one of the most desirable and affordable places to live in the United States due a wave of business and industry development, unique military assets, high-quality job growth and attractive lifestyle.
According to the State of Colorado’s Labor and Employment division, our unemployment rate dropped to only 2.8%, decreasing from 3.6% in 2018. Our unemployment is lower than the national average, and 38.4% of our population has a bachelor’s degree or higher.
The city’s continued growth has led to increased absorption of commercial spaces in 2019; we are also seeing new projects coming up out of the ground. The steady growth is not just limited to office, retail and industrial, but also to multifamily developments. As seen in 2018, construction costs have continued to rise which in turn pushes lease rates higher for new properties.
Colorado Springs businesses benefit from a community rich with investment, talent, and experience. Some of the fastest growing industries are: Information Technology, Software, Cyber-Security and Health Care. Even with a slight correction in the market this past summer, we can expect 2020 to bring lower vacancies, higher lease rates and lower tenant concessions. Construction costs and time will continue to rise while property values remain steady.
Check back next month for a more detailed overview of the office sector in Colorado Springs!