1st Quarter 2026 Colorado Springs
In the first quarter of 2026, Colorado Springs’ commercial real estate market showed mixed conditions across its major property sectors. Office and industrial lease rates increased, while multi-family rents declined and retail conditions remained relatively stable. NavPoint Real Estate Group’s latest market update reflects an evolving market with varying levels of availability and pricing across property types.
Multi-Family Market:
The multi-family sector reported an average lease rate of $1.64 per square foot and a vacancy rate of 11.6%. Lease rates declined from $1.73 per square foot in the fourth quarter, while vacancy improved from 12.4%, indicating stronger absorption despite softer rental pricing.
Retail Market:
Retail space posted an average lease rate of $21.63 per square foot and a vacancy rate of 5.32%. Lease rates increased slightly from $21.51 per square foot in the previous quarter, while vacancy also edged higher, suggesting relatively stable pricing alongside a modest increase in available space.
Office Market:
Office properties recorded an average lease rate of $23.78 per square foot, up from $22.95 in the fourth quarter, while vacancy increased from 12.0% to 12.4%. The rise in lease rates despite higher vacancy reflects mixed conditions within the Colorado Springs office market, with pricing strengthening even as tenants continue to have a meaningful selection of available space.
Industrial Market:
The industrial sector reported an average lease rate of $11.48 per square foot and a vacancy rate of 5.8%. Lease rates increased from $11.20 per square foot in the previous quarter, while vacancy remained unchanged, pointing to stable occupancy and continued demand for industrial and flex space.
Overall, Colorado Springs began 2026 with generally stable commercial real estate fundamentals. Industrial showed notable pricing strength, while the multi-family sector experienced improved occupancy despite lower rents. Retail remained relatively steady, and the office market continued to balance rising lease rates with elevated availability. These first-quarter trends highlight the varied opportunities and challenges shaping the Colorado Springs commercial real estate market in 2026.
