Big R Storefront
For Sale
Contact for pricing
2050 Southgate Rd, Colorado Springs, CO 80906
Single-tenant retail property with approximately nine years remaining on the lease.
Property Size46,614 SF
Price / SF$149.21
Days on Market1103
Property Features for 2050 Southgate Rd
General Information
Standard status
Active
Size
46,614 SF
Property subtype
Retail
Zoning
C5
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$514,707
Site & Location
Corner Location
Yes
Anchor Co-Tenants
Home Depot, Ross, PetSmart, Michael’s, Red Robin, Chipotle, Ulta, Old Navy
Traffic Count
60,000 vehicles/day
Building Details
Year Built
1959
Year Renovated
2023
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
SVN | Denver Commercial Denver
(303) 632-8784
Listed By:
Kevin Matthews · License #CO FA100037845
Source:
Crexi
Added: Aug 25, 2023
Changed: Aug 30
Last Checked: Aug 31 at 4:29AM
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 SVN | Denver Commercial Denver
Investment Insights
Based on property information with market context.
This 46,614-square-foot storefront property is occupied by Big R under a lease with 9 years +/- remaining. Built in 1959 and zoned C5, the building is configured for a single retail occupant. Big R operates 39 locations across Colorado, New Mexico, Kansas, Oklahoma, and Texas.
The property sits at the southwest corner of Nevada Ave, also identified as CO Hwy 115, and Lake Ave, east of I25 in Southeast Colorado Springs. The intersection averages over 60,000 vehicles per day. Nearby retailers include Home Depot, Ross, PetSmart, Michael’s, Red Robin, Chipotle, Ulta, and Old Navy, providing an established retail setting within a large shopping center.
The property sits at the southwest corner of Nevada Ave, also identified as CO Hwy 115, and Lake Ave, east of I25 in Southeast Colorado Springs. The intersection averages over 60,000 vehicles per day. Nearby retailers include Home Depot, Ross, PetSmart, Michael’s, Red Robin, Chipotle, Ulta, and Old Navy, providing an established retail setting within a large shopping center.
Key Highlights
- 46,614‑square‑foot single‑tenant storefront property
- 9 years +/- remaining on the Big R lease
- Zoned C5; built in 1959
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
$493,691
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
7.10%
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%
$9,873,820
$9.9M
Cap Rate 7%
$7,052,729
$7.1M
Cap Rate 9%
$5,485,456
$5.5M
Market Conditions
NOI Build-Up for 46,614 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
$744.0K $15.96/SF
− Vacancy
−$38.7K −$0.83/SF
EGI
$705.3K $15.13/SF
− OpEx
−$211.6K −$4.54/SF
NOI
$493.7K $10.59/SF
Area
ZIP 80906
Vacancy
5.20%
Lease Rate
$15.96 /SF/Yr
Expense Ratio
30.00%
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%
$9,873,820
Cap Rate 7%
$7,052,729
Cap Rate 9%
$5,485,456
Alternative Uses
Best Use
Retail
$7.05M
$6.17M – $8.23M
NOI $493,691 @ 7.0% cap · market cap 7.10%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$8.81M
$7.71M – $10.28M
NOI $616,997 @ 7.0% cap · market cap 8.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
60,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
954
Businesses Nearby
448k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 37%
Shops & Services 22%
Home Improvements & Furnishings 14%
Apparel 14%
The Home Depot
Home Improvements & Furnishings
41,801 visits/mo
0.3 miles
Ross Dress for Less
Apparel
38,717 visits/mo
0.1 miles
Safeway
Groceries
35,317 visits/mo
0.3 miles
McDonald's
Dining
32,483 visits/mo
0.3 miles
Michaels
Shops & Services
29,537 visits/mo
0.1 miles
Demographics for 80906, CO
39,019
Population
16,771
Households
2.3
Avg Household Size
39
Median Age
49%
College-Educated
95%
High-School Grad
45.6 sq mi
ZIP Area
856
Density / Sq Mi
$88,047
Median Household Income
$47,314
Median Earnings
$1,634
Median Rent
$543,400
Median Home Value
Market
Vacancy Rate% for Retail in Colorado Springs, CO
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Single-tenant retail property with approximately nine years remaining on the lease.
Where is this storefront property located?
The property is located at 2050 Southgate Rd Colorado Springs, CO.
What is the asking price?
The asking price for this property is $6,955,500.
What are key features of this property?
This property features: 46,614‑square‑foot single‑tenant storefront property; 9 years +/- remaining on the Big R lease; Zoned C5; built in 1959
