Steamboat Springs Businesses Remain Cautiously Optimistic During Coronvirus Impact

While the housing market is red-hot, offices, shopping malls, retail and other commercial real estate properties across the country have been hit hard by the pandemic. According to Lisa Popovich, the executive director of Main Street Steamboat, most Steamboat Spring-based retailers did better than expected this summer but are still well behind in sales compared to last year.  She said part-time residents who spent much of the summer in Steamboat, played a huge part in supporting local merchants and restaurants. A few retailers have shut their doors, which Popovich said were for reasons beyond just the pandemic. Two new restaurants, The Yampa Valley Kitchen and Sauvage, recently had successful openings. Business owners in Steamboat Springs remain cautiously optimistic.

Local Steamboat Economy is Reliant on Tourism

“We don’t know what’s ahead of us, but we have hope that our local businesses can weather the coming months and have a good winter,” said Greg Breslau, a commercial real estate broker with Colorado Group Realty.  “Usually tenants move to new locations in spring and fall, but we are not seeing that so far.” Like other mountain towns in Colorado, Steamboat is hugely reliant on tourism to support the local economy. Some sectors are faring better than others, such as the outdoor industry, which has seen a boom in sales due to COVID.  Of course, businesses that depend on large group gatherings to be successful such as movie theatres, concert venues and bars are hurting the most.

Demand for Live/Work Units Increases with Teleworking Becoming a New Norm

Teleworking has had an impact not only on residential real estate, but also on the demand for office space and live/work units. “Usually we have more options for prospective buyers or renters, but despite the COVID-related challenges, we still don’t have much inventory,” Breslau said. The Yampa Valley is still considered affordable compared to other mountain towns along the I-70 corridor, which makes it a serious contender for developers.  Commercial loans are at historic all-time lows and long-term investors from out-of-town locations are looking at Steamboat beyond the current COVID crisis.