Colorado Springs / El Paso County Q2 2025 Market Update Report

PUBLIC POLICY

Colorado Springs City Council voted 6-3 to override the mayor’s veto of an ordinance allocating voter-approved marijuana sales tax revenue to public safety and mental health programs, highlighting tensions over authority.

On September 2, President Trump confirmed the relocation of U.S. Space Command headquarters to Huntsville, Alabama, reversing previous decisions. It seems like with every change of administration, this decision alters. Currently, there are about 800 personnel located in Colorado Springs that may be impacted. Although Colorado leaders mounted bipartisan opposition, the decision stood at quarter’s end, even as many contractors pledged to remain locally headquartered.

HAPPENINGS

By September, Colorado Springs’ single-family home inventory came back down from the summer — but still over 12% higher than the same time last year. The median home price also decreased, settling at $480,000. On the new construction front, there were 627 single-family permits and 339 new commercial permits issued this quarter, according to PPRBD.

ITS Expanded Operations in Colorado Springs, adding 500 High-Paying Aerospace Jobs. The IT engineering firm announced a $7 million investment on July 31, creating roles averaging $130,000 annually in cybersecurity and defense.

July reports noted the University of Colorado – Colorado Springs’ growth in aerospace, defense, and tech degrees to match Colorado Springs’ rising job market, ranked #15 for U.S. metro hiring.

COMMERCIAL REAL ESTATE

The multifamily market saw net absorption through the first 3 quarters of 2025, outpacing new completions — signaling a shift from the supply-heavy conditions of 2023–early 2024.

The industrial market in Colorado Springs recorded $31.51 million in total sales volume during Q3 2025 (for 5K–200K SF properties), marking a 14.9% year-over-year increase from Q3 2024. Average asking rents hit a record high of $12.02/SF, and vacancy went up slightly to ~5.1%.

KEY TRANSACTIONS

INDUSTRIAL: $8M | Former PepsiCo RETAIL: $8M | Natural Grocers