Colorado Springs economy and its commercial real estate market is predicted to continue improving in 2016.
In general, the recovery local commercial real estate sector has been sluggish versus that of recession single-family housing market, post recession. But, according to the Gazette, entities looking to invest in areas outside of Denver, expanding market segments are some of factors that can be attributed to the slow recovery springs commercial real estate as foreseen by Springs brokerage, Quantum Commercial Group.
"Everyone we talk to, and all our clients, everybody is much, much more confident in the economy as well as in their business," Gazette quotes Quantum president Dale Stamp. "Everybody's eating out a little more. There are more cars that people are buying and looking at. The general health of people's mindsets is much, much brighter than in years past. We're not at the supersonic speed of up north, that's for sure, but there are some ripple effects taking place."
The buying and selling, as well as construction, job growth and new businesses pertaining to the housing sector of Colorado Springs have also been stimulated by sturdier economy and very low mortgage rates. However, one cannot say the same thing for the commercial market.
But Quantum Commercial is confident that Springs commercial market will see growth in next year, as commercial investors and business are expected to come into Colorado Springs expecting bigger returns while prices in Denver becomes steeper.
According to Jack Mason, a Quantum broker, more investors are looking into multi-family, retail and other commercial lots. "These are people that we didn't get to talk to last year," Gazette quotes what Mason said. "They wanted to be in Denver and Denver only. That has seemed to move down the Front Range now."
"The Springs has higher cap rates - or rates of return on investments - and a stable market," Mason reportedly added. "If the Springs were to see stronger job growth, it would serve "as the launch pad to get us up to the next level very quickly."
