Construction on the Colorado Aerospace Business Center (CABC) has begun, marking the start of a $75 million project aimed at creating a hub for aerospace companies in Colorado Springs. With the first phase scheduled to be operational by mid-2025, the site's design and infrastructure cater to the specific needs of high-tech and government contracting firms in the aerospace industry.
Photo courtesy of Brady Welsh
Site prep continues at the future site of the Colorado Aerospace Business Center.
Described as being on the cutting edge of innovation for industrial development, the Colorado Aerospace Business Center (CABC) will serve as a hub for aerospace companies of all sizes and stages of growth.
CABC is positioned adjacent to the Colorado Springs Airport on a 31-acre site.
Photo courtesy of Heather McKeen
"The aerospace industry plays a pivotal role in the economy for the state of Colorado," said Brady Welsh, AZ Opportunity Fund principal. "Colorado Springs is a key market for innovative companies of all sizes that require modern facilities for research and development, manufacturing, office space and outdoor storage.
"The current industrial market fundamentals in Colorado Springs are very favorable for new construction. A combination of very limited new inventory in the pipeline, coupled with increasing rental rates, should bode well for new development projects in the area."
AZ Opportunity Fund celebrated the groundbreaking of the CABC in August 2024, marking the start of the first phase of the more than $75 million project.
"CABC has been incredibly well received in the Colorado Springs community," Welsh said. "We were thrilled to have over 60 people attend our launch party. The attendees ranged from economic development and city officials to real estate professionals in the area.
"So far, we've invested over two years into making this project come to fruition. The land was originally located in El Paso County, and we collaborated with the seller to complete the annexation of the land into the city of Colorado Springs."
Organizers plan to build out the entire subdivision in three to four phases.
"This timing will be based on market demand and absorption of each phase," Welsh said. "Phase I is an 85,000-sq.ft. spec industrial building, Phase II is scheduled to be approximately 120,000-sq.-ft. and future industrial buildings will range from 15,000-sq.ft. to 60,000-sq.ft. We also own 4.6 acres for a retail development, and we will bring that online as the residential neighborhoods in the area continue to get built out."
Welsh said meeting the specialized infrastructure needs of high-tech and government contracting companes is a smart move.
"With proper planning now, we are hoping to increase the speed that we can accommodate the unique needs of high-tech companies. In addition, many of the steps that we are taking are only incremental cost increases at this time that would likely be cost prohibitive after the core and shell is complete.
"We are expecting the core and shell of Phase 1 to be finished by June 2025. Depending on when we execute leases, we could even have tenants operational by late summer 2025."
Civil teams continue prepping the site, with crews moving into utility infrastructure. Workers plan to pour the building slab and tilting walls in November.
"It's incredibly rewarding to see the conceptualized project take shape," Welsh said. "I'm proud all of our pre-planning is paying off, truly allowing our team to hit the ground running as we hit each project milestone."
ARCO/Murray serves as the design-build firm.
Photo courtesy of Brady Welsh
Charlie McLean, ARCO/Murray's director of business development, said right now the project is focused on completing earthwork to get the site pad-ready, ensuring a stable foundation for the building. This includes final grading, compacting soil and preparing for the tilt wall construction. Initial grading has already wrapped up, along with soil conditioning and utility trenching.
Crews have reached building pad acceptance and have begun excavating building foundations. These efforts prepare workers to take the building vertical in the coming months. Key tasks remaining include erecting the tilt wall structure; erecting the steel structure; and completing mechanical, electrical and plumbing infrastructure, including the 3,000-amp service and Level 2 charging stations.
"Final dock equipment installation and HVAC testing are also scheduled to ensure the facility is ready for occupancy," McClean said. "In addition, we are preparing the building to meet the stringent utility and load requirements necessary to support the unique needs of aerospace and government contracting companies, which could include SCIF [Sensitive Compartmented Information Facility] spaces, specialized needs for power, security, connectivity and operational efficiency."
Current earthwork is extending into future phases to properly balance the site and start to prepare additional pads. Excavation also is focused on utility trenching for the water main and electrical infrastructure. These operations were critical to ensure the facility meets future tenant needs without requiring significant retrofitting.
McLean said approximately 80,000 cu. yds. of dirt are being moved, mainly for grading, foundation preparation and trenching operations.
"That's like filling 24 Olympic-sized swimming pools or stacking 9,600 dump trucks worth of soil," he said. "It's safe to say, we're giving the earth a major makeover; however, the grading design of the project extends to all phases, to ensure the project is properly balanced and doesn't require any import or export of dirt."
Key equipment includes heavy excavators, trenchers for utility lines and concrete pumps for the tilt walls. Cranes are employed to position wall panels, and specialized machinery is used to condition soil moisture to maintain site stability.
Chief materials include concrete for the tilt wall panels, steel columns and beams for structural support and essential ventilation systems. Electrical infrastructure, including high-capacity wiring for the 3,000-amp service and charging stations, also is crucial to meet tenant demands.
Colorado's weather has required careful planning, particularly during soil conditioning and tilt-wall construction phases. Snow, wind and moisture can impact progress, so scheduling has remained flexible to ensure timelines are met. Each phase of the project will be specifically timed to reduce the effects of the elements.
McLean said during the construction of the shell building, the tilt wall installation will likely be the most time-consuming aspect, because of its complexity and dependency on precise weather conditions. Aligning multiple construction phases to avoid disruptions also has required detailed planning.
In addition, the project includes plans for fiber redundancy to meet the high connectivity demands of aerospace tenants.
"We are also exploring options for rooftop antenna installations to enhance communication capabilities for future tenants. Additionally, the building is being reinforced to support future solar panel installations, ensuring the facility is prepared for sustainable energy solutions as tenant needs evolve."
Kimley Horn is providing land planning and a wide range of engineering services, while Cushman & Wakefield I Colorado Springs Commercial is the exclusive leasing brokerage for the project.
According to Heather McKeen, Cushman & Wakefield director, "CABC is an exciting project, because of the forward-thinking detail not only in its design, but also in its functionality. The project has been meticulously designed with the tenant of today and tomorrow in mind. Everything from the site's location to the integration of green energy capabilities, including electric vehicle charging stations and structural reinforcements to make the building solar ready, has been intentional ensuring this project will be highly functional for years to come.
"CABC is delivering attractive industrial buildings that have the amenities that tenants need and can't find anywhere else in the market. CABC will be the launch point for the city's industrial aerospace industry."
McKeen said the location is ideal for an aerospace business center.
Photo courtesy of Heather McKeen
"The aerospace industry is booming in Colorado Springs," she said. "This great city is home to the Air Force Academy, Peterson Airforce Base, Schriever Airforce Base, Cheyenne Mountain/NORAD, Space Command, Fort Carson and dozens of defense contractors. We are the country's second-largest space economy, with one of the nation's highest-educated workforces.
"The ownership group, AZ Opportunity Fund LLC, has been laser-focused on the success of this project and has moved with lightning speed to get construction moving. The groundbreaking ceremony was quite literal in the sense that as soon as shovels touched dirt, excavation and groundwork got started."
She added, "The CABC project's specialized infrastructure is the first of its kind in Colorado Springs. The ownership group is dedicated to providing a high-quality building that beats any other on the market. More than that, because CABC is developed with infrastructure in mind, on such a large scale we are able to deliver build-to-suit options in Phases 2 through 4. This is just the beginning." CEG
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