Page 20 —
COLORADO REAL ESTATE JOURNAL
— October 15-November 4, 2014
Colorado Springs/So. Front Range
by Jennifer Hayes
Colorado Springs has some
catching up to do, at least in
terms of multifamily rental
rates, according to Apartment
Insights latest Statistics/Trends
Summary.
“With local monthly rents cur-
rently 25 percent lower than its
northerly neighbors, Colorado
Springs has a lot of catching up
to do,” explained Doug Cart-
er of Sperry Van Ness/Doug
Carter LLC, who co-authored
the report with Cary Bruteig of
Apartment Appraisers & Con-
sultants.
However, during the third
quarter, rent for stabilized
properties in Colorado Springs
increased $24 to $825 per month,
or $1.01 per square foot – the
first time the metrowide aver-
age rent broke the $1 per sf bar-
rier. The annual rental growth
rate also increased, rising from
5.1 percent last quarter to 5.9
percent this quarter – the fastest
growth in at least eight years,
the report noted. The $46 annual
increase also was the highest.
Colorado Springs’ northern
apartment submarket contin-
ues to have the highest rents of
any submarket at $966, which
increased $26 during the quar-
ter.
Effective rents also grew by
$30 to $816 during the third
quarter, representing the larg-
est quarterly increase in the
eight years of the survey, while
concessions decreased by $6 to
$9 per month or 1.1 percent of
gross rent – a record low.
Apartment Insights believes
that based on performance by
multifamily areas to the north
of the Springs, which have
had vacancy below 5 percent
for some time, sustained rent
growth can exceed 6 percent per
year if vacancy remains low.
Colorado Springs’ vacancy
rate dropped to a more than
10-year low, with a 4.79 percent
vacancy rate, marking the first
time the city’s vacancy rate has
dipped below 5 percent in 13
years. The trailing four-quarter
average vacancy rate fell 28
basis points to 5.38 percent.
Vacancy rates decreased
across most age groups of prop-
erties, with only the 2000s prod-
uct moving slightly higher to
4.74 percent. The three prop-
erties built since 2010 had the
lowest rate of 4.02 percent while
the 1960s and 1970s product had
vacancy above 5 percent.
The vacancy rate for tax credit
properties decreased 31 bps to
3.71 percent, equal to the eight-
year low reached at the end of
2013. This is only the second
time that vacancy for tax credit
properties has been below 4 per-
cent in the last 32 quarters.
Absorptionwas 306 units – the
second highest in eight quarters
– bringing annual absorption to
867 units.
The report noted that four
sales closed during the fourth
quarter, averaging $69,889 per
unit and $100.09 per sf. Despite
the volume lower than last
quarter, buyer interest remains
strong, according to the report.
Other News
n
A public market is coming
to Colorado Springs.
Nor’wood Development
Group
and the
Colorado
Springs Public Market Proj-
ect
recently announced a new
partnership initiative to deliver
the much-anticipated Colorado
Springs Public Market to the
community.
The Colorado Springs Pub-
lic Market will be located in a
portion of the former Gazette
Building, 30 S. Prospect St., in
downtown Colorado Springs.
The space is designed to be
a year-round market, gathering
and event destination that con-
nects local growers, producers
and related businesses with resi-
dents and visitors.
The Colorado Springs Pub-
lic Market is part of a larger
vision by Nor’wood Develop-
ment and other community
partners to transform the for-
mer Gazette and neighboring St.
Francis Hospital properties into
a mixed-use development.
Further information regarding
the redevelopment are expected
in the near future.
s
