June 1-June 14, 2016 —
COLORADO REAL ESTATE JOURNAL
— Page 27
Finance
FIND FINANCING
I N D U S T R Y D I R E C T O R Y
COMMERCIAL REAL ESTATE
LENDERS
Arbor Commercial
Mortgage, LLC
Bank of America Merrill
Lynch – Commercial
Real Estate
Bank of Colorado
Bank of the West
Berkadia Commercial
Mortgage, LLC
Bloomfield Capital
Partners, LLC
Capital Source
CBRE|Capital Markets
Chase Commercial Term
Lending
Colorado Business Bank
Colorado Lending Source
Commerce Bank
Essex Financial Group
Fairview Commercial Lending
FirstBank Holding Company
Front Range Bank
Grandbridge Real Estate
Capital LLC
Hunt Mortgage Group
JCR Capital
JVSC-CBRE Capital Markets
KeyBank N.A., KeyBank Real
Estate Capital
Merchants Mortgage and
Trust Corp.
Midland States Bank
Montegra Capital Resources,
Private Lender
Mutual of Omaha Bank
NorthMarq Capital, Inc.
RNB Lending Group
TABS
TCF Bank
Terrix Financial Corporation
U.S. Bank – Commercial
Real Estate; SBA Division
Vectra Bank Colorado, N.A.
Wells Fargo N.A. –
Commercial Real Estate
Group; SBA Division
Westerra Credit Union
profiles
photos
contacts
social links
videos
and more
GET LISTED
Jon Stern | 303-623-1148 |
A
s the momentum of
economic expansion
advances from Den-
ver to along the Front Range and
across the state of Colorado, Colo-
rado Springs is poised to be the
next significant growth area.
As the city with the second best
job growth in the state, next to
Fort Collins, an affordable housing
market and a strong and educated
workforce, Colorado Springs is
ready to enjoy its own boom.
While gainingmomentummore
slowly than the Front Range, econ-
omists forecast continued growth
and new opportunity ahead for El
Paso, Teller and Pueblo counties.
At a recent Vectra Bank econom-
ic event, Jason Schrock, chief econ-
omist with the Governor’s Office
of State Planning and Budgeting,
and Dr. Tatiana Bailey, executive
director of the Southern Colorado
Economic Forum, both forecasted
an upward economic trend for
the region, due in part to a strong
and growing workforce popula-
tion and increasingly diverse and
healthier industry makeup.
Bailey noted that Colorado
Springs is one of the places in
Colorado where people can best
afford their own home, without
too much of their wealth going
toward housing. In addition to
affordable housing and more jobs,
both in- and out-of-state tourism
are growing. Hotel occupancy is
up 6 percent and is on an upward
trajectory, and the city is poised
to be a popular destination as the
Summer Olympics is on the hori-
zon.
Schrock reported that unem-
ployment rates for Pueblo and
Colorado Springs fell faster than
in any other city in the state. While
growth lagged due to the declin-
ing oil and gas industry, Colo-
rado Springs
is becoming
home to a
large num-
ber of diverse
industries that
help econo-
mies
stay
stable through
down mar-
kets.
One of the
largest growth
i n d u s t r i e s
for Colorado
Springs and
Colorado in general is profession-
al services. Also notable was the
region’s growing high-tech indus-
try, and science and math-skilled
industries. Schrocknoted that hav-
ing a high concentration of STEM
jobs will help sustain the region’s
growth moving forward. This
includesmore advancedmanufac-
turing, computer system design
and software manufacturing.
All that growth means more
need for commercial office space.
The Colorado Springs office mar-
ket (Quantum Commercial Mar-
ket Report) began strong this
year with a total net absorption of
119,532 square feet for the quarter,
and vacancy rates dropped 0.06
percent to 11 percent.Average ask-
ing rental rates were $16.54 per
sf per year at the end of the first
quarter, which was a 3.7 percent
decrease from the end of last year.
Low absorption rates in the office
market and affordable current
lease rates are one reason why
there is no new commercial office
construction taking place.
Yet one thing Bailey was most
excited about for El Paso Coun-
ty is that it is one of four coun-
ties expected to see a population
increase of 380,000 between 2010
and 2040. High numbers of 65
plus, but also 30- to 49-year-olds
in their family years, are projected
to move into El Paso County. The
largest jobgrowth is expected to sit
in the health, professional services
and technology industries. Com-
bine that with affordable hous-
ing compared to Denver and per
capita personal income increas-
ing, and Bailey predicts the future
looks promising for housing in the
Southern Colorado region.
While no new office space
was completed in the Colorado
Springs market area by end of first
quarter this year, Colorado is a
mecca for entrepreneurs and start-
ups, sowith this influx of working
people, we see new businesses on
the horizon as well. As commer-
cial real estate fills in, there will
be room for growth in this area of
construction. Usually the last to
emerge from a down market, the
industrial market’s vacancy rate
is unchanged from the end of last
year.
It’s no secret that the Denver
multifamily housing market is at
riskof beingoverbuilt. Thatmeans
more multifamily investors are
eyeing Colorado Springs. Poten-
tial for higher returns is heating up
the commercial lendingmarket for
both local and national investors.
The lack of new commercial con-
struction investment buyers will
seek out the existing, well-located
properties that have potential as
the market continues to improve.
In short, the economic experts
at the conference have confirmed
what businesses and residents in
Colorado Springs have already
known. We are seeing more tour-
ism, more high-quality jobs and
more economic vitality in themar-
ket. We feel like Colorado Springs
is about to take off.
s
Shawn Gullixson
Vice president, Vectra
Bank Colorado
Springs
