Out-of-state investors are buying up Colorado Springs commercial real estate options left and right. Apartment complexes, office buildings, shopping centers, and land are being snatched up in areas all around new and existing real estate in Colorado Springs subdivisions. Buyers from California, New York, Massachusetts and other states accounted for ¾ of the sales. With a record $1.1 billion in commercial Colorado Springs real estate transactions in 2006 alone, it must be obvious to some people that Colorado Springs is a good place to invest.
One important unique feature about Colorado Springs real estate is location smack dab in the middle of the country in a time zone that comfortably serves either coast. Real estate in Colorado Springs serves companies based on both coasts that need a central location and landlords are lining up for their business. Communications and transportation infrastructures are in place so that employees and products can be easily flown or trucked around the nation and the world.
Investors do their homework. Looking for vital signs in Colorado Springs real estate, they look at the city and the economy. They learn that there is a well-educated work force, low unemployment, solid job growth, and relentless defense and medical industries. They see neighborhoods springing up and steady population gains along with important solid household incomes. They find 600,000 residents with a variety of skill sets and talents.
Though a smaller secondary market, prices are more affordable than in Denver and there is less competition. Top-quality properties are still available here and investors can achieve solid returns. And as the cost of building materials has been dramatically increasing, less new construction has meant more demand and those higher leasing rates that investors are looking for.
The largest investor from recent years is a Maryland-based company called Corporation Office Properties Trust. COPT has extensive experience leasing large facilities and now leases space to several defense contractors near Peterson Air Force Base—to the tune of $114.7 million worth of property. Arkansas became a big player when an investment group recently paid $150 million for The Citadel Mall while it was negotiating for another mall and some shopping centers.
Another factor driving the market is positive publicity. MONEY magazine recently ranked the city as the Best Big City in America and Wall Street Journal told a story about the rebounding of the local commercial market. Just like the stock market, investors watch one another and copy one another.
Contact Amy Lassen at (719) 440-0013 or e-mail firstname.lastname@example.org for real estate information.