Last month, over 100 business leaders from across Northwest Colorado gathered at the Colorado Mountain College Steamboat Springs campus for the annual Economic Summit. Worker shortages was a common issue for businesses regardless of industry. Additionally, sky-rocketing gas prices and a 40-year-high in inflation threaten tourism-based businesses, the lifeblood of the Steamboat Springs economy.

Tax Revenue Up

Despite the findings, the City of Steamboat Springs sales tax revenue is up 31% from last year, through April. This equates to over $3.3M more in revenue for the first quarter of 2022.

“It’s hard to explain,” said Sue Davies, Budget and Tax Manager for the City. “The categories may indicate that a lot of it is in the Mountain area and in lodging, so probably just some pent-up demand for getting out and about and traveling.”

Investors Eye Steamboat Springs

Steamboat Springs is at the forefront of investors’ minds, as commercial real estate professionals report a surge in interest for potential ventures. National fashion brand retailer, Faherty, recently opened their first Colorado store on Lincoln Ave. in Steamboat, saying that the vacation destination fits well with their consumer.

Downtown Retail Space in High Demand

Competition for downtown retail space has spiked with several businesses expanding, or new enterprises moving into the area. Athletic wear giant, Lululemon, relocated from a pop-up store to the former Bucking Rainbow space with a longer-term lease.  CuCu Leather moved into Lulu’s old shop on 7th St., jumping at the opportunity to grab a larger space, while Bucking Rainbow and Steamboat Flyfisher will join forces in a soon-to-be-opened store on Yampa St. and 7th.

Buildable Opportunities Low

Demand for commercial real estate continues to outweigh supply. RiverView Steamboat, a 4.75-acre mixed use development in downtown, is almost sold out, with the last parcels pending. Numerous large deals for vacant land on the mountain by Steamboat Resort have either closed or are under contract, leaving little buildable opportunities at this time.

The need for industrial units remains strong, especially for the construction industry who seek storage and office space. Later this summer, Auto Hangers will launch a “bespoke car storage” service at Yampa Valley Regional Airport.

Steamboat Resort Investments Spur Demand

Part of the demand lies with the multi-million, multi-year commitment to invest in Steamboat Resort by Alterra. The group began the second phase of redevelopment in their Full Steam Ahead campaign once the resort closed in April.