Light Industrial Building with Outdoor
For Sale
$2,100,000
2903 North Prospect Street, Colorado Springs, CO 80907
Industrial building in Colorado Springs with fenced outdoor storage and light industrial zoning for flexible manufacturing use.
Property Size18,233 SF
Price / SF$115.18
Days on Market63
Property Features for 2903 North Prospect Street
General Information
Standard status
Active
Size
18,233 SF
Property subtype
Industrial
Zoning
LI
Additional Details
Fenced Yard
Yes
Building Details
Building Size
18,233 SF
Year Built
1966
Year Renovated
2014
Listing Agency:
Miramont Commercial Real Estate
(719) 229-1585
Listed By:
Simon Penner
Source:
Miramontcre
Added: Jun 11
Changed: Aug 8
Last Checked: Jun 26 at 12:37PM
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 Miramont Commercial Real Estate
Investment Insights
Based on property information with market context.
This light industrial property includes a building constructed within a 1966 framework, currently operated as a MMJ grow. The site has fenced outdoor storage, with exterior and site improvements completed in 2014. The facility features full HVAC, forced air conditioning, electrical and plumbing systems, and floor drains, supporting industrial workflows beyond cultivation. A new roof was installed in 2018.
The property is located at 2903 North Prospect Street in Colorado Springs. It is zoned Light Industrial (LI), aligning the site with a range of light manufacturing or industrial uses as permitted under the local zoning designation.
For buyers or operators seeking a light industrial facility that already supports an industrial-grade environment, this asset offers an existing operating setup and functional building systems, including HVAC and floor drains. The fenced outdoor storage area provides additional enclosed/controlled space to support onsite processes tied to industrial use.
The property is located at 2903 North Prospect Street in Colorado Springs. It is zoned Light Industrial (LI), aligning the site with a range of light manufacturing or industrial uses as permitted under the local zoning designation.
For buyers or operators seeking a light industrial facility that already supports an industrial-grade environment, this asset offers an existing operating setup and functional building systems, including HVAC and floor drains. The fenced outdoor storage area provides additional enclosed/controlled space to support onsite processes tied to industrial use.
Key Highlights
- 18,233 SF industrial building in Colorado Springs, built in 1966 and currently set up as a MMJ grow
- Zoned Light Industrial (LI) for light manufacturing or other industrial uses
- Fenced outdoor storage with improvements completed in 2014
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
$165,453
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
7.88%
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%
$3,309,060
$3.3M
Cap Rate 7%
$2,363,614
$2.4M
Cap Rate 9%
$1,838,367
$1.8M
Market Conditions
NOI Build-Up for 18,233 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
$247.2K $13.56/SF
− Vacancy
−$10.9K −$0.60/SF
EGI
$236.4K $12.96/SF
− OpEx
−$70.9K −$3.89/SF
NOI
$165.5K $9.07/SF
Area
Colorado Springs, CO
Vacancy
4.40%
Lease Rate
$13.56 /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%
$3,309,060
Cap Rate 7%
$2,363,614
Cap Rate 9%
$1,838,367
Alternative Uses
Best Use
Industrial
$2.36M
$2.07M – $2.76M
NOI $165,453 @ 7.0% cap · market cap 7.88%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$3.60M
$3.15M – $4.20M
NOI $252,053 @ 7.0% cap · market cap 12.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
1,095
Businesses Nearby
Explore this area
Business Placement
Demographics for 80907, CO
28,806
Population
13,250
Households
2.2
Avg Household Size
40
Median Age
40%
College-Educated
93%
High-School Grad
9.8 sq mi
ZIP Area
2,939
Density / Sq Mi
$71,393
Median Household Income
$41,355
Median Earnings
$1,392
Median Rent
$371,200
Median Home Value
Market
Vacancy Rate% for Industrial in Colorado Springs, CO
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Cannabis property - Industrial building in Colorado Springs with fenced outdoor storage and light industrial zoning for flexible manufacturing use.
Where is this cannabis property located?
The property is located at 2903 North Prospect Street Colorado Springs, CO.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: 18,233 SF industrial building in Colorado Springs, built in 1966 and currently set up as a MMJ grow; Zoned Light Industrial (LI) for light manufacturing or other industrial uses; Fenced outdoor storage with improvements completed in 2014
