1st Quarter 2026 Castle Rock
In the first quarter of 2026, Castle Rock’s commercial real estate market showed strengthening conditions across several major property sectors. Retail and office lease rates increased, while multi-family and industrial vacancy declined from the previous quarter. NavPoint Real Estate Group’s latest market update reflects continued demand across much of the Castle Rock market, particularly within the retail sector.
Multi-Family Market:
The multi-family sector reported an average lease rate of $2.05 per square foot and a vacancy rate of 11.4%. Lease rates increased from $2.01 per square foot in the fourth quarter, while vacancy declined from 13.0%, indicating improved absorption and stronger occupancy conditions.
Retail Market:
Retail remained one of Castle Rock’s strongest-performing sectors, posting an average lease rate of $27.47 per square foot and an exceptionally low vacancy rate of just 0.80%. Lease rates increased from $26.61 per square foot in the previous quarter, while vacancy declined further from 1.19%, highlighting extremely limited availability and continued demand for retail space.
Office Market:
Office properties recorded an average lease rate of $34.09 per square foot, up from $32.76 in the fourth quarter, while vacancy increased slightly from 3.9% to 4.1%. Despite the modest increase in availability, Castle Rock’s office market continues to maintain very low vacancy and strong rental rates.
Industrial Market:
The industrial sector reported an average lease rate of $16.59 per square foot and a vacancy rate of 12.6%. Lease rates increased from $16.34 per square foot in the previous quarter, while vacancy declined from 13.6%. Although availability remains elevated, the quarter-over-quarter improvement suggests some stabilization within the industrial market.
Overall, Castle Rock began 2026 with encouraging momentum across much of its commercial real estate market. Retail continues to stand out with exceptionally limited availability, while office maintains strong pricing and low vacancy. Improving occupancy in the multi-family and industrial sectors also points to healthier market conditions compared with the end of 2025.
