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Steamboat Market Update Q1 2022

MarketUpdate_SteamboatSprgs

The commercial real estate market traditionally follows residential market trends, at a slower pace. As 2022 gets well underway, the buyer demand for commercial real estate far outweighs supply, just as it did in 2020 and 2021 for residential.

Realtors® are reporting a surge in calls from investors and potential business owners seeking opportunities for downtown Steamboat Springs and the outlying area. Especially Live/Work Units and warehouses are currently a sought after commodity, but supply is almost non-existent. There are new developments coming out of the ground this summer. Cost of construction has risen substantially!!!

At time of writing, there are only 30 commercial properties for sale and 18 leases available. No Warehouse units or Live work units on the market. There are a handful of units being offered off the market and are cooperating with Brokers.

2021 Q12022 Q1%+-
VELOCITY (Source – REColorado)
Commercial Sales Volume$1,030,000$0-100%
Commercial Transactions20-100%
Range of NNN Rental Rates
on Commercial Properties
Retail $17′-$35′ | Office $18′-$23′ |
Warehouse $15′-$18′
CAP RATE6.5% – 7%6.5% – 7%
SALES TAX INDICATORS 
(Source – REColorado)
All Sales Tax$9,408,176$12,760,668+35.63%
Lodging Taxes$2,489,058$4,086,836+64.19%

Real Estate Market Notables:

2021 was a much busier year for Ron Wendler than 2020. The lack of inventory continues, which is typical for most mountain areas in Colorado. Short-Term rentals is an issue; Steamboat City Council continues discussion. The city of Steamboat Springs is considering dormitory type housing to be built in Industrial Zoning. 65 Live/Work units and Industrial lots proposed at entrance of Steamboat Springs Airport. Overland Park has 100+ homesites; small and large lots; recently sold with all approvals in place. Steamboat Ski Area begins Phase II of $200M redevelopment: New Gondola to new Ski School area between Bashor & Thunderhead lifts.

About The Author

Ron Wendler, Colorado Group Realty

With over 20 years of real estate experience in the Steamboat Springs area, Ron Wendler has an extensive background in commercial real estate. He owns Colorado Group Realty, an independent brokerage firm that specializes in cash flow real estate, commercial and residential specifications development. He also has experience in residential/luxury home sales, ranches and recreation properties.

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