Office Building Near Downtown
New
For Sale
Contact for pricing
128 S Tejon St, Colorado Springs, CO 80903
Urban office property surrounded by restaurants, hotels, professional services, government uses, and cultural destinations.
Property Size43,226 SF
Price / SF$115.44
Days on Market4
Property Features for 128 S Tejon St
General Information
Standard status
Active
Size
43,226 SF
Property subtype
OFFICE
Listing Agency:
Cushman & Wakefield | Colorado Springs Commercial
(719) 634-1500
Listed By:
David Schroeder II · License #FA.100068961
(719) 322-3078
Source:
Moodyscre
Added: Sep 4
Changed: Sep 6
Last Checked: Sep 6 at 2:34PM
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 Cushman & Wakefield | Colorado Springs Commercial
Investment Insights
Based on property information with market context.
This 43,226-square-foot office building is located at 128 S Tejon Street in Colorado Springs. The property sits within an established urban business district surrounded by restaurants, hotels, professional services, government uses, and cultural destinations.
The surrounding area also includes downtown residential development, hospitality activity, and a broad selection of restaurant and retail offerings. The mix of nearby services and destinations supports a walkable setting for employees, residents, and visitors, with the property positioned in an active downtown environment.
The surrounding area also includes downtown residential development, hospitality activity, and a broad selection of restaurant and retail offerings. The mix of nearby services and destinations supports a walkable setting for employees, residents, and visitors, with the property positioned in an active downtown environment.
Key Highlights
- 43,226‑square‑foot office building
- Located at 128 S Tejon Street in Colorado Springs
- Surrounded by restaurants, hotels, professional services, government uses, and cultural destinations
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
$425,506
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
8.53%
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%
$8,510,120
$8.5M
Cap Rate 7%
$6,078,657
$6.1M
Cap Rate 9%
$4,727,844
$4.7M
Market Conditions
NOI Build-Up for 43,226 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
$648.4K $15.00/SF
− Vacancy
−$81.0K −$1.88/SF
EGI
$567.3K $13.13/SF
− OpEx
−$141.8K −$3.28/SF
NOI
$425.5K $9.84/SF
Area
Colorado Springs, CO
Vacancy
12.50%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
25.00%
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%
$8,510,120
Cap Rate 7%
$6,078,657
Cap Rate 9%
$4,727,844
Alternative Uses
Best Use
Office B
$6.08M
$5.32M – $7.09M
NOI $425,506 @ 7.0% cap · market cap 8.53%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$8.54M
$7.47M – $9.96M
NOI $597,556 @ 7.0% cap · market cap 11.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,687
Businesses Nearby
Explore this area
Business Placement
Demographics for 80903, CO
15,944
Population
8,340
Households
1.9
Avg Household Size
34
Median Age
39%
College-Educated
95%
High-School Grad
5.4 sq mi
ZIP Area
2,953
Density / Sq Mi
$59,292
Median Household Income
$35,251
Median Earnings
$1,221
Median Rent
$420,000
Median Home Value
Market
Vacancy Rate% for Office in Colorado Springs, CO
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Urban office property surrounded by restaurants, hotels, professional services, government uses, and cultural destinations.
Where is this office building located?
The property is located at 128 S Tejon St Colorado Springs, CO.
What is the asking price?
The asking price for this property is $4,990,000.
What are key features of this property?
This property features: 43,226‑square‑foot office building; Located at 128 S Tejon Street in Colorado Springs; Surrounded by restaurants, hotels, professional services, government uses, and cultural destinations
