Colorado Springs is the nation's leading concentration of defense, aerospace, and space-industry employment outside of Washington, DC, anchored by the U.S. Air Force Academy, Fort Carson, Peterson Space Force Base, Schriever Space Force Base, and NORAD. The metro combines recession-resistant federal employment, a growing private-sector defense contractor base, and a booming outdoor tourism economy to produce durable commercial real estate fundamentals heading into 2026.

Colorado Springs Market Overview: Key Metrics

The Colorado Springs commercial real estate market in 2026 reflects a market shaped by U.S. Air Force Academy, Fort Carson, Peterson Space Force Base, Schriever Space Force Base, NORAD, Lockheed Martin, Northrop Grumman, Boeing, L3Harris, Raytheon, UCHealth, Centura Health, National Cybersecurity Center. Here are the key metrics investors and borrowers should know:

  • Multifamily Vacancy: 5.8% — near the national average with healthy absorption
  • Industrial Vacancy: 4.0% — among the tightest markets nationally
  • Office Vacancy: 13.5%
  • Retail Vacancy: 5.2%
  • Rent Growth: 3.2% year-over-year
  • Job Growth: 2.3% — outpacing the national average
  • Population Growth: 1.3% annually
  • Median Asking Rent: $1,685

Multifamily Outlook in Colorado Springs

Colorado Springs multifamily vacancy of 5.8% and 3.2% rent growth reflect stable and steady performance driven by military in-migration and private-sector defense hiring. Median asking rents of $1,685 offer relative value compared to Denver, supporting strong migration from more expensive Colorado markets. Value-add strategies in Briargate, Southeast Colorado Springs, and Fountain remain attractive, while new product in Northgate leases at premium rents to defense-industry professionals.

Industrial & Logistics Market

Industrial vacancy at 4.0% is driven by defense contractors, advanced manufacturing, and distribution tenants serving the regional Colorado market. The Powers Corridor and Fountain-Security submarkets anchor larger format industrial, while flex and R&D near InterPark serves defense and technology tenants. Rent growth has outpaced Denver's in recent years due to defense sector demand.

Office & Retail Dynamics

Class A office in Northgate and InterPark, which serves major defense contractors and supporting technology firms, has outperformed the broader Colorado Springs office market at 13.5% vacancy. Retail at 5.2% vacancy benefits from population growth and the metro's outdoor tourism economy, with Briargate and Woodmen Road anchoring the suburban retail map.

Financing Landscape in Colorado Springs

Colorado Springs attracts deep lender interest given the metro's recession-resistant federal employment base. Agency multifamily execution is competitive, regional banks lead SBA and construction lending, life companies target Class A office leased to defense contractors, and bridge lending supports an active value-add multifamily pipeline.

For borrowers in the Colorado Springs area, current commercial mortgage rates range from 5.00% for agency multifamily to higher rates for transitional and value-add projects. Key factors that influence your rate include property type, leverage, sponsor experience, and asset location within the metro.

Top Submarkets to Watch

The Colorado Springs metro features several distinct submarkets that present unique investment opportunities:

  • Downtown Colorado Springs
  • Old Colorado City
  • Manitou Springs
  • Broadmoor
  • Briargate
  • Northgate
  • Powers Corridor
  • Interquest
  • InterPark
  • Southeast Colorado Springs
  • Monument
  • Fountain
  • Security-Widefield
  • Black Forest
  • Cascade
  • Woodland Park

Each of these submarkets has distinct characteristics in terms of tenant demand, development activity, and pricing. The top investment corridors in Colorado Springs include Downtown Colorado Springs, Northgate and InterPark Class A office, Briargate retail and multifamily, Powers Corridor industrial, Monument.

Investment Outlook: Colorado Springs 2026

Long-term fundamentals remain constructive as Space Force expansion, defense-contractor consolidation, and private-sector technology growth all support sustained employment and population expansion. The strongest 2026 opportunities are Class A office supporting defense and space programs, value-add multifamily in older inner-ring submarkets, and industrial serving defense and advanced manufacturing supply chains.

CLS CRE in Colorado Springs

CLS CRE provides commercial mortgage brokerage services throughout the Colorado Springs metropolitan area, with access to 1,000+ lenders including banks, life insurance companies, CMBS conduits, agency lenders, debt funds, and credit unions. Whether you're acquiring, refinancing, or developing commercial property in Colorado Springs, our market expertise and lender relationships help you secure the most competitive terms available.

Explore our financing programs for Colorado Springs: