4th Quarter 2025 Castle Rock
In the fourth quarter of 2025, Castle Rock’s commercial real estate market showed mixed conditions across major property sectors. Retail and office maintained exceptionally low vacancy rates, while multi-family and industrial vacancy continued to rise. NavPoint Real Estate Group’s latest market update highlights the shifting supply-and-demand dynamics across the Castle Rock market.
Multi-Family Market:
The multi-family sector reported an average lease rate of $2.01 per square foot and a vacancy rate of 13.0%. Lease rates remained relatively stable, while vacancy increased from 11.3% in the previous quarter, indicating continued availability and potential opportunities for renters in the market.
Retail Market:
Castle Rock’s retail market remained particularly strong, posting an average lease rate of $26.61 per square foot and an exceptionally low vacancy rate of just 1.19%. Limited availability continues to demonstrate strong demand for well-located retail space and reflects the strength of Castle Rock’s growing consumer base.
Office Market:
Office properties recorded an average lease rate of $32.76 per square foot, with vacancy remaining low at 3.9%. While vacancy increased slightly from 3.2% in the third quarter, Castle Rock’s office market continues to significantly outperform the broader Denver market in terms of occupancy.
Industrial Market:
The industrial sector reported an average lease rate of $16.34 per square foot and a vacancy rate of 13.6%. Vacancy continued its upward trend from 11.2% in the third quarter, creating increased options for industrial and flex users while potentially placing downward pressure on rental rates.
Overall, Castle Rock closed out 2025 with particularly strong fundamentals in the retail and office sectors, where limited vacancy continues to support healthy leasing conditions. Meanwhile, rising availability in the multi-family and industrial markets is creating a more competitive environment and new opportunities for tenants and investors. The fourth quarter results underscore the increasingly varied dynamics shaping Castle Rock’s growing commercial real estate market.
