Colorado Springs Industrial 2025 Year End Summary

Key Findings

Buyer Demand Is Back — Sales Volume Surged More Than 50%: 2025 marked a clear re-acceleration in buyer demand across the Colorado Springs industrial and flex market. Sales volume jumped 50.8% year-over-year, rising from $114.5 million in 2024 to $172.6 million in 2025, with momentum building steadily through the year and closing with a very strong second and fourth quarter. Buyers that remained on the sidelines in 2023 and 2024 are now actively re-entering the market.
Rents Are Rising While Vacancy Remains Tight — A Landlord-Favorable Setup: Colorado Springs continues to rank among the most balanced industrial markets on the Front Range. Vacancy held steady at just 5.2% while asking rents increased 6.7% year-over-year, reaching record highs in Q4, underscoring the market’s ability to support rent growth without signs of stress. As macroeconomic conditions have begun to stabilize and interest rate expectations have become clearer, tenants that delayed expansion or relocation decisions in prior years have started to move forward.
Development Is Disciplined — No Oversupply Risk on the Horizon: Colorado Springs has avoided the oversupply challenges seen in several Front Range markets by maintaining a disciplined development environment. While under-construction inventory dipped marginally in 2025, construction has remained elevated over the past five years, driven largely by pre-leased and build-to-suit activity as of late. This approach has helped align new supply with tenant demand and preserve market balance heading into 2026.

Focused Metrics

5K-200K SF | Industrial & Flex Properties

Colorado Springs Industrial Sales Activity

Sales activity in the Colorado Springs industrial and flex market showed meaningful acceleration in 2025, driven by renewed buyer confidence and improved market clarity. Total annual sales volume reached $172.6 million, up from $114.5 million in 2024, representing a significant 50.8% year-over-year increase. While Q1 activity was essentially f lat year-over-year, sales volume increased sharply in Q2 and remained elevated throughout the balance of the year with a strong Q4 close.

This improvement reflects greater confidence among investors and owner-users as pricing expectations stabilized, interest rate volatility moderated, and long-term fundamentals in Colorado Springs—such as sustained population growth, a strong defense presence, and limited industrial land availability—continued to support demand. As uncertainty eased, buyers that delayed acquisitions in prior years re-entered the market, driving higher transaction activity and positioning Colorado Springs for continued sales momentum heading into 2026.

Colorado Springs Industrial Sales Volume

5K-200K SF | Industrial & Flex | Source: CoStar Group, Inc.

Sale pricing in 2025 reflected a recalibration phase rather than a true correction. The quarterly average sale price finished the year at $148 per SF, up from $134 per SF in 2024, representing a 10.4% year-over-year increase. While pricing softened modestly through mid-year, Q4 rebounded strongly at $169 per SF, signaling renewed competition for well-located, functional product.

Pricing behavior in 2025 reflected an ongoing adjustment process rather than a steady upward trajectory. Sale prices fluctuated quarter to quarter as buyers and sellers responded to shifting market conditions, variations in deal composition, and asset-specific fundamentals. The rebound in Q4 demonstrates that well-located, functional industrial product continues to attract competitive pricing, even as the broader market works through pricing alignment. This suggests that Colorado Springs continues to benefit from strong user demand and limited availability of high-quality inventory in the 5,000–200,000 SF range.