Free-Standing Industrial Building with
For Sale
$1,120,000
123 North Union Boulevard, Colorado Springs, CO 80909
Remodeled industrial facility with fenced yard access and divisible suites suited to a range of light industrial uses.
Property Size6,400 SF
Price / SF$173.16
Days on Market97
Property Features for 123 North Union Boulevard
General Information
Standard status
Active
Size
6,400 SF
Property subtype
Industrial
Zoning
MX-L
Additional Details
Fenced Yard
Yes
Building Details
Building Size
6,400 SF
Listing Agency:
Hoff & Leigh
Listed By:
Holly Trinidad · License #ER.100022369
(719) 630-2277
Source:
Commercialcafe
Added: Jun 12
Changed: Sep 13
Last Checked: Sep 15 at 4:55AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Hoff & Leigh
Investment Insights
Based on property information with market context.
123 North Union Boulevard presents a free-standing industrial building totaling 6,468 square feet with a fenced yard. The property is being totally remodeled to a new shell condition. The ground floor is approximately 5,000 square feet plus an approximately 1,500 square foot mezzanine, and the layout has been divided into two equally sized spaces known as Suite 100 and Suite 110. The mezzanine is intended for Suite 110, while the available space for leasing is Suite 100 (the south suite).
The building is zoned MX-L. Approximately half of the fenced yard behind the building is included with the lease space. The roof was newly installed in 2023, with a 10-year transferrable warranty at installation. A Phase 1 environmental inspection performed in 2015 reported that the assessment revealed no evidence of a recognized environmental condition in connection with the property.
This configuration can work well for operators that want a free-standing industrial building with a newly remodeled interior shell and access to outdoor space. Suite 100’s ground-floor footprint can support a variety of warehouse and light industrial requirements, with the mezzanine area planned for Suite 110 as part of the broader division. Lease terms referenced are $3,500 per month plus utilities, with private showings and confidential financial details available through the listed contacts.
The building is zoned MX-L. Approximately half of the fenced yard behind the building is included with the lease space. The roof was newly installed in 2023, with a 10-year transferrable warranty at installation. A Phase 1 environmental inspection performed in 2015 reported that the assessment revealed no evidence of a recognized environmental condition in connection with the property.
This configuration can work well for operators that want a free-standing industrial building with a newly remodeled interior shell and access to outdoor space. Suite 100’s ground-floor footprint can support a variety of warehouse and light industrial requirements, with the mezzanine area planned for Suite 110 as part of the broader division. Lease terms referenced are $3,500 per month plus utilities, with private showings and confidential financial details available through the listed contacts.
Key Highlights
- 6,468 SF free‑standing industrial building with a fenced yard and MX‑L zoning
- Currently being totally remodeled to new shell condition; divided into Suite 100 and Suite 110
- Suite 100 available with ~5,000 SF on the ground floor plus ~1,500 SF mezzanine intended for Suite 110
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$71,270
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.36%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,425,400
$1.4M
Cap Rate 7%
$1,018,143
$1.0M
Cap Rate 9%
$791,889
$791.9K
Market Conditions
NOI Build-Up for 6,468 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$87.7K $13.56/SF
− Vacancy
−$3.9K −$0.60/SF
EGI
$83.8K $12.96/SF
− OpEx
−$12.6K −$1.94/SF
NOI
$71.3K $11.02/SF
Area
Colorado Springs, CO
Vacancy
4.40%
Lease Rate
$13.56 /SF/Yr
Expense Ratio
15.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,425,400
Cap Rate 7%
$1,018,143
Cap Rate 9%
$791,889
Alternative Uses
Best Use
Warehouse
$1.02M
$890.9K – $1.19M
NOI $71,270 @ 7.0% cap · market cap 6.36%
Second Best
Flex RnD
$890.1K
$778.8K – $1.04M
NOI $62,306 @ 7.0% cap · market cap 5.56%
Theoretical Best
Specialty Retail
$1.28M
$1.12M – $1.49M
NOI $89,414 @ 7.0% cap · market cap 7.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
2,598
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 80909, CO
37,302
Population
16,572
Households
2.3
Avg Household Size
38
Median Age
28%
College-Educated
92%
High-School Grad
7.9 sq mi
ZIP Area
4,722
Density / Sq Mi
$61,777
Median Household Income
$36,894
Median Earnings
$1,227
Median Rent
$352,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Colorado Springs, CO
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Frequently Asked Questions
What type of property is this?
Flex space - Remodeled industrial facility with fenced yard access and divisible suites suited to a range of light industrial uses.
Where is this flex space located?
The property is located at 123 North Union Boulevard Colorado Springs, CO.
What is the asking price?
The asking price for this property is $1,120,000.
What are key features of this property?
This property features: 6,468 SF free‑standing industrial building with a fenced yard and MX‑L zoning; Currently being totally remodeled to new shell condition; divided into Suite 100 and Suite 110; Suite 100 available with ~5,000 SF on the ground floor plus ~1,500 SF mezzanine intended for Suite 110
