Colorado Springs Commercial and Office Space Overview
Established as a permanent settlement in 1859, Colorado Springs is the second largest city in the state and has a long history of commerce, prosperity, and a can-do spirit that continues from its Old West roots. Covering nearly 200 square miles, the city is extensive and spacious, allowing for plenty of room for its 465,000 residents to spread out.
Home to a major military presence, the city’s main lifeblood revolves around government programs, defense, tourism, and the high-tech sector. With a rock bottom median rate per square foot/year at $18 and more than 500 available listings, the commercial real estate market in Colorado Springs is a remarkable opportunity for entrepreneurs looking for a hip, scenic city to lay down their roots.
Economy of Colorado Springs
Home to the U.S. Air Force Academy, three Air Force installations, and the US Army post Fort Carson, much of Colorado Springs’ economy revolves around the military and various defense contractors that have taken up residence in the nearby area. However, due to the natural features in the region and the presence of the United States Olympic Training Center, tourism is a major economic driver in Colorado Springs, bringing in 5 million visitors each year and more than $1.3 billion in revenue.
Several high-tech firms exist in the Colorado Springs area, including Verizon Business, HP, and Microchip Technology. While there have been notable reductions in the number of jobs in this sector over the last two decades, the industry remains a top 3 employer in the area and continues to attract top talent around the world to Colorado Springs.
Strangely, Colorado Springs has effectively removed itself from Colorado’s high-profile recreational cannabis market, rejecting any and all recreational shops since legalization was passed in 2013. Experts say the city is missing out on as much as $25 million per year as a result, but the medical cannabis clinics in Colorado Springs remain successful.
Trends of Colorado Springs
Colorado Springs has experienced a significant boom in the residential real estate market, driving home values up as much as 63% over the last five years. The median home price was $295,000 as of early 2018, with experts saying demand for homes in the central neighborhoods of the city will only grow as the city’s economic power continues to improve.
The city, long been second fiddle to Denver, is estimated to overtake the capital in metropolitan population by 2033. Thanks to nearly $620 million in development investment throughout the city and a major upgrade to the U.S. Olympic Museum and Hall of Fame adjacent to the U.S. Olympic Committee headquarters southwest of the downtown area, Colorado Springs is slated to grow both its tourism industry and its residential and commercial real estate portfolio within the next few years.
