Businesses Reopen for the First Time Since COVID-19

Businesses in Steamboat Springs opened their doors again last month for the first time since COVID-19. Thanks in part to rent relief from landlords and paycheck protection programs from the government, the majority of local tenants have re-opened. Nonetheless, the situation is tenuous for many business owners who are learning to operate at reduced capacities and with lower visitor traffic.

Fortunately most businesses only lost around a month of ski season revenue since the most stringent lockdown requirements occurred during mud season. “If COVID-19 had hit earlier, things could have been a lot different,” remarked Lisa Popovich, Executive Director of Main Street Steamboat Springs.

What Will the Future Hold for Commercial Real Estate

Autumn tends to be the busiest time in the commercial real estate market as many leases and purchases are made prior to the impending ski season. With so much unknown, this year may be different. “There is definitely a sense of ‘wait and see’ right now,” said Chris Sias, a commercial specialist with Colorado Group Realty.

Recently, Realtors® have seen a spike in interest from prospective out of town clients. “Many business owners are looking for opportunities outside of metro areas, so we are definitely getting inquiries,” commented Sias. As working from home becomes more acceptable, many location neutral workers are seeking office space outside of the home. With continued demand, prospective tenants hoping for bargains are realizing landlords aren’t slashing prices just yet.

Largest Transaction of the Month Keeps Commerical Sales Hopeful

While vacancies in the commercial market haven’t spiked yet, it seems unlikely that the sector will have as rapid of a bounce back as the residential market. Nonetheless, the largest transaction of the month was the $4.75M sale of the Steamboat Pilot building. Developers will convert the building to a mixed-use complex with 54 residential units for long and short term rentals as well as locals workforce housing. It will also house a variety of retailers such as a restaurant, bar and lounge, and a fitness facility.