So I thought I'd share my newfound knowledge.
The definitions below are from Dictionary.com.
–verb (used with object), verb (used without object), -cat·ed, -cat·ing.
to locate or be located in jointly or together, as two or more groups, military units, or the like; share or designate to share the same place.
col·lo·cate /ˈkɒləˌkeɪt/ Show SpelledAt this point I was still confused; they sound so similar. That is until I found an excellent explanation on the differences of the two on the Language Portal of Canada where they answered my exact question. Here's the link to the page: Co-locate vs. collocate
[kol-uh-keyt] Show IPA
verb, -cat·ed, -cat·ing, noun
–verb (used with object)
1. to set or place together, especially side by side.
2. to arrange in proper order: to collocate events.
–verb (used without object)
3. Linguistics . to enter into a collocation.
4. Linguistics . a lexical item that collocates with another.
Ok, I think I'm clear now. Hope this was helpful to someone else too.