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— Retail Properties Quarterly — August 2016
C
olorado Springs and the Pikes
Peak region is teeing up for
unprecedented develop-
ment growth. Every time you
turn around it seems a new
development is announced, and not
just pie-in-the-sky hopeful develop-
ments, but solid projects backed by
experienced developers with fund-
ing sources in place. It is a fun time
to see the city changing and see how
all of these projects will propel the
retail landscape.
From new retail developments to
multifamily housing in downtown
to new hotels and restaurants, water
parks and museums, the list of
exciting projects goes on. Develop-
ment plans are submitted, dirt is
moving and cranes are up. Here is a
quick rundown of some of the proj-
ects happening in and around Colo-
rado Springs.
n
New retail developments.
Retail
demand intensifies as the popula-
tion of the Colorado Springs’ metro-
politan statistical area continues to
grow, currently upward of 679,000,
according to the 2015 American
Community Survey.
This year, eight grocery-anchored
developments were announced or
opened, including the King Soop-
ers Marketplace at Marksheffel and
Woodmen roads, The Sprouts Center
at Powers Road and Barnes Boule-
vard, The Sprouts Center at Voyager
Parkway and North Gate Boulevard,
The Sam’s and Walmart Develop-
ment at Interstate 25 and Academy
Boulevard, Save-A-Lot at Carefree
Circle and Academy Boulevard, and
three Natural Grocer relocations.
There also is the rumored opening
of another King Soopers Marketplace
at the Current Fac-
tory site at I-25 and
Woodmen Road,
with more, feasibly,
to come. With this,
many surround-
ing unanchored or
shadow-anchored
developments are
following to meet
demand and are
landing some great
tenants.
A few new ten-
ants announced
or entered the
market, including MOD Pizza, Sierra
Trading Post, Mad Greens, LaVida
Massage, C.B. & Potts, Fuzzy’s Taco
Shop, Modern Market, ViewHouse,
Zoes Kitchen, Mellow Mushroom,
and Bad Daddy’s Burgers.
This list doesn’t include all the
local concepts that recently arrived,
such as Bonny & Read Seafood in
downtown, TILL Kitchen on North
Powers, 503|W on W. Colorado
Avenue, Walter’s Pizzeria and Tap
House, Colorado’s Best Coffee, Tea &
Sandwich E-Café, Soluxe Salon, The
Burrowing Owl, The Principal’s Office
and Brooklyn’s on Boulder. As well
as the many new breweries: Bristol
Brewing Co., CogStone Brewing Co.,
Iron Bird Brewing Co., Fieldhouse
Brewing Co. and Triple S. Brewing Co.
In short, deals are getting done
in the Pikes Peak region, more so
than in previous years. Our retail
team alone has leased over 270,000
square feet of retail space in the last
12 months. Vacancy remains low,
hovering around 5.6 percent and
retail lease rates are climbing. We
are optimistic this momentum will
continue, and we suspect this will
be supported by positive job growth
and a boost in tourism.
n
Job and business growth.
Colo-
rado Springs has begun to improve
the business climate and recent job
announcements are a reflection of
that. Sierra Completions selected a
property near the Colorado Springs
airport to locate its headquarters.
The company plans to construct
four 90,000-sf hangar facilities and
create an estimated 2,100 local jobs
over the next five years – jobs in the
$80,000 per year range. With their
contractors and vendors required to
be nearby, there is a three-times net
effect of these 2,100 jobs.
Numerous other tech companies
have announced more jobs, and
projects like the Catalyst Campus
and Epicentral are set to attract even
more.
n
New housing developments.
With
all these new jobs comes a need for
more housing. In downtown, more
than 440 apartment units are com-
ing on line in the next year. This
includes 33 units at Blue Dot Place
(412 S. Nevada), which opened in
January, 169 units under construc-
tion at 106 S. Wahsatch Ave., 187
units planned at 609 S. Cascade Ave.,
and 48 units at 22 Spruce St.
Additionally, single-family building
permits are up and student housing
developments are on the rise as Uni-
versity of Colorado Colorado Springs
continues to massively expand.
n
Hotels and tourism.
For years, the
Pikes Peak region leaned on military
and defense as its primary economic
driver; however, tourism is keep-
ing pace, thanks to a State Regional
Tourism Grant awarded to the city
Tiffany Colvert
Broker, NAI
Highland Retail
Team, Colorado
Springs
Market Update
USOM
Thanks to the State Regional Tourism Grant, Colorado Springs is investing in several new
tourism attractions, including the Olympic Museum. The increases in tourism should spur
even more retail growth.
