Colorado Springs Industrial Market Report Q2 2026
Key Findings
- Sales Volume Surges Near Peak Levels: The Colorado Springs industrial market kept up its early-year momentum, closing $90.99M in Q2 transactions (up 32% from $68.76M in Q2 2025). This makes Q2 2026 the strongest quarter by sales volume since the historic post-COVID peaks of late 2021/early 2022. Buyers are actively taking position before the market tightens further, with deal flow largely seen from private capital and owner-user acquisitions.
- Record Pricing Meets Shifting Vacancy: Average pricing reached an all-time market peak of $194/SF in Q2 2026, surpassing neighboring Denver. There has been a distinct split in the market: modern, highly functional assets are commanding massive premiums, while older, second-generation properties make up most of the lingering inventory. Vacancy edged up slightly to 6.0%; a multi-year high, but a healthy sign of a rebalancing market rather than a drop in demand. Landlords still hold core pricing leverage.
- Development Pipeline Cools Down: Construction starts dropped to 0 SF in Q2 2026, mirroring development pauses we saw in 2023 and 2025. High construction costs and tighter lending criteria have developers taking a breath, bringing total space under construction down to 391,462 SF (down from peaks over 570,000 SF). This development pause acts as a natural guardrail against oversupply and sets up vacancy to tighten as current inventory gets absorbed.
Colorado Springs Industrial Sales Activity
5K-200K SF | Industrial & Flex Properties
Sales Volume
Source: CoStar Group, Inc.
Sale Price Per SF
Source: CoStar Group, Inc.
For Sale Total Listings
Source: CoStar Group, Inc.
Months On Market
Source: CoStar Group, Inc.
Colorado Springs Industrial Vacancy & Rent
5K-200K SF | Industrial & Flex Properties
Vacancy Rate
Source: CoStar Group, Inc.
Direct Rents Per SF
Source: CoStar Group, Inc.
Months to Lease
Source: CoStar Group, Inc.
Colorado Springs Industrial Construction
5K-200K SF | Industrial & Flex Properties
SF Construction Starts
Source: CoStar Group, Inc.
SF Under Construction
Source: CoStar Group, Inc.
Looking Ahead
Driven by $90.99M in Q2 2026 transactions and an all-time peak average of $194/SF, Colorado Springs’ industrial sector showed exceptional strength through H1 2026. While vacancy nudged up slightly to 6.0%, a complete halt in new construction starts guarantees capped future supply as existing projects deliver.
For owner-users, acquiring high-quality space now offers a window to beat rising replacement costs. For institutional and private investors, disciplined development pipelines and resilient small-to-mid-bay demand reinforce Colorado Springs as a standout target for long-term rent growth and value creation along the Front Range.
