COLORADO SPRINGS — In downtown Colorado Springs, the office vacancy rate is much lower than the national average and other large cities like Denver.
The commercial real estate sector has struggled to recover from the COVID-19 pandemic as people continue to work from home rather than return to the office. A report from the National Association of Realtors shows that the office vacancy rate nationwide last quarter was 13.1%, which is up from around 9.5% before the pandemic, according to Business Insider.
It's a trend that has been especially impacting large cities like Denver, where the office vacancy rate was above 15% last quarter according to that National Association of Realtors Report. However, trends and numbers are not the same in Colorado Springs.
The Downtown Partnership of Colorado Springs estimates more than 78% of people have returned to work in-person in the downtown area since 2020.
“We started to see that employers and employees both are realizing that there are real benefits to being in person with their coworkers,” said Austin Wilson-Bradley, the economic development manager for the Downtown Partnership.
Wilson-Bradley said in quarter two this year, about 6 1/2% of offices in the downtown area were vacant, up from 3.8% one year before. Monday’s and Friday’s, he says, are a little more quiet in downtown Colorado Springs, whereas Tuesday’s and Wednesday’s are more robust. He also mentioned this comes as employers are settling into a hybrid work environment.
“There are some employers that may downsize their footprint, somewhat but maintain an office presence downtown,” said Wilson-Bradley. “They’re adjusting for the fact they might have fewer employees at any given time in the office, so I expect office vacancy rates to take a little bit of a hit in the coming months.”
When comparing to Denver, Wilson-Bradley also said office vacancy rates are much lower because because Colorado Springs never saw the same build-up of office space that Denver saw.
“We have a lot of businesses here in downtown Colorado Springs that are related to our defense community and require some secure location and an access for their employees,” said Wilson-Bradley.
It's been more than three years since the pandemic started and since many people transitioned to working from home. Since then, many have also returned to the office or a hybrid working position.
“Primarily, I’m coming into the office five days a week. Are most people doing that? No, it's still a mix,” said Doreen Merz, a tax partner at Stockman Kast Ryan + Co, a firm in downtown Colorado Springs.
Merz also said it’s visible, that many people are returning to work in the downtown area.
“I think traffic levels and foot traffic levels are kind of back to what I remember before the pandemic shutdown,” said Merz.
Meanwhile, companies like hers are adjusting to offering a hybrid working environment.
“We’re kind of in our hiring and recruiting processes, having those conversations upfront to see what people are looking for what people are needing,” said Merz.
____
Watch KOAA News5 on your time, anytime with our free streaming app available for your Roku, FireTV, AppleTV and Android TV. Just search KOAA News5, download and start watching.
