Being able to edit the Google Analytics account is the 2nd highest permission level. You need this if you want to create a new web property in Google Analytics.
To grant permissions to another user you will need the highest permission level yourself: being able to manage users on the account.
If you want to add a new user, make sure that the email that you are adding is a Google email.
To check if it is working
Your colleague should now be able to see a Create Property button above the middle column in the admin page.
Your permissions are all set up now!