The information it processes may be under lock and key, but a defense industry startup's lease for more office space was a high-profile economic development win for a fast-growing Colorado mountain town.
Nooks, a security and space manufacturing company, signed on for more than 57,725 square feet in Colorado Springs as the site for its next secured facility in the United States. The lease deal is expected to create more than 35 new jobs and contribute as much as $37 million to the local economy, according to the Colorado Springs Chamber and Economic Development Corp., enough to earn it a 2024 CoStar Impact Award for lease of the year, as judged by real estate professionals familiar with the market.
Nooks' new Colorado Springs hub will build on a growing network of locations in areas such as San Francisco, Boston and Washington, D.C., that offer what the company calls "turnkey classified environments" for industry and government professionals. The Colorado Springs location will house the company's data center servicing operations and help anchor Nooks' expansion efforts across the Western U.S.
What's more, the lease agreement with Nooks could help spur the region's burgeoning Department of Defense industry, serving as the starting point for additional investments down the line.
"The local economic development impact cannot be understated," CoStar Impact Award judge Paul Morrow, a senior analyst for the city of Colorado Springs' community development department, said of the deal. "Additionally, the accolades from Governor Polis, the [Colorado Office of Economic Development and International Trade office], and other state and local representatives speak for themselves."
About the Project: Nooks' newest location in Colorado Springs will cater to the region's growing technology and defense ecosystem. The startup is also the only company cleared to provide secured facilities access for the federal government, making the deal especially attractive for security professionals that previously had limited options for the type of space they needed for classified operations.
What the Judges Said: "Nooks will be a fantastic source of new employment in Colorado Springs in a time when the city needs jobs more than ever," CoStar Impact Award judge Christian Lauter, a client services manager for multifamily development firm Greystar, said of the deal. "This lease is impactful because it means a quality employer has a home where they will be valued."
They Made It Happen: Cushman & Wakefield's Greg Phaneuf and Peter Scoville brokered the deal with Nooks on behalf of North Creek landlord Alturas Capital Partners.
CoStar Market Manager Kathryn Binns contributed to this report.