Total nonfarm payroll employment in the Colorado Springs MSA started to recover from the downturn in 2020 when over 10,000 jobs were lost due to impacts from COVID-19. As of mid-year 2021, job growth increased by 2.3% based on average year-to-date comparisons. Well below the peak of 12.6% in April 2020, the unemployment rate sat at 6.5% in June.
Investment sales volume reached $185.2 million in the first half of 2021, representing a significant 85.5% increase from H2 2020 when investment sales totaled $99.9 million.
Direct vacancy increased to 10.3% in Q2 2020, up 70 basis points (bps) from Q4 2020.
Negative net absorption of 233,000 sq. ft. was recorded in H1 2021, marking the second consecutive six-month period in nine years that negative net absorption was recorded.
Construction remained active with over 141,000 sq. ft. of office space physically breaking ground by the end of H1 2021, bringing the total of under construction to 482,000 sq. ft. Two buildings delivered, bringing 40,000 sq. ft. of new office space to the market in H1 2021.
The overall average asking lease rate flattened, decreasing $0.10 since Q4 2020 to $16.36 per sq. ft. triple net (NNN) in Q2 2021.