Colorado Commercial Real Estate Market Update

05/15/2025

Industry Insights

Colorado’s commercial real estate (CRE) market in 2025 continues to demonstrate resilience and growth. The state’s diversified economy – spanning tech, aerospace, energy, agriculture, and outdoor recreation – provides a strong foundation for its property sectors. Colorado’s population has also been steadily climbing (now roughly 6 million residents), fueling demand for everything from modern office space to distribution warehouses and apartments ](https://worldpopulationreview.com/states/colorado). Amid national headwinds like higher interest rates and shifting work patterns, Colorado’s CRE trends remain largely positive. In this update, we explore high-level trends across the office, industrial, retail, and multifamily sectors, spotlight key submarkets (Denver, Colorado Springs, Fort Collins, and the Western Slope), and identify investment opportunities. A pro-growth outlook prevails, and platforms like Brevitas are helping investors discover on-market and off-market deals to capitalize on Colorado’s momentum.

Office Market Trends

The Denver office market in 2025 is navigating a transitional period. Downtown Denver continues to grapple with elevated vacancy as remote and hybrid work models keep many offices underutilized. Empty office space has piled up in the central business district, even shaving billions off property values as companies reassess their footprint (https://www.cpr.org/2024/12/22/denver-office-building-vacancies-property-values-down/). As of late 2024, downtown office vacancies were estimated to be over one-third of total inventory – among the highest in the nation. Landlords have responded by reinventing office space: older buildings are being upgraded with amenities like flexible collaboration areas, outdoor terraces, and modern HVAC systems to attract tenants back. Some developers and city leaders are even exploring conversions of obsolete office towers into residential or mixed-use projects, though these conversions are complex and in early stages.

Despite the challenges, there are glimmers of optimism for offices. Leasing activity in Denver picked up in the past year as some companies solidified return-to-office plans and signed longer-term leases, helping stabilize the market. Sublease space in downtown Denver actually declined for several consecutive quarters, indicating that the worst of the pandemic-era office downsizing may be over. Premium “trophy” office buildings in prime locations are still seeing demand – a clear flight-to-quality trend where tenants prefer amenity-rich, newer buildings and shed older, less efficient spaces. Industry forecasts even suggest the office sector could turn a corner in 2025; analysts foresee a gradual revival with potential shortages of top-tier space by late 2025 in select markets (https://www.cbre.com/insights/books/us-real-estate-market-outlook-2025). This means that as Denver’s economy grows, its best office properties could become highly sought-after again, even if overall vacancy remains elevated.

Outside Denver, other Colorado cities have fared better. In Colorado Springs, for example, office vacancies are lower than the national average (around 10% vs ~14% U.S. average) (https://www.hoffleigh.com/colorado-springs-q4-2024-market-reports/). The Springs’ office market benefits from steady demand (bolstered by military and defense industry tenants) and a lack of new office construction, which keeps supply in check. Similarly, Fort Collins and the northern Colorado region – with its mix of tech firms, university facilities, and government offices – report relatively healthy office occupancy. These secondary markets did not overbuild during the last boom and have a more locally driven tenant base, insulating them from the worst of the remote-work fallout. Overall, office landlords across Colorado are adapting to new tenant preferences: offering shorter lease terms, build-out allowances for collaborative layouts, and perks that make the office worth the commute. Investors interested in office assets are focusing on well-located, high-quality buildings (which show stable rent performance) or, conversely, looking for distressed downtown properties that can be acquired at a discount and repositioned for future upside.

Industrial Market Trends

The Colorado industrial property sector remains a standout performer in 2025. Years of e-commerce growth and supply-chain reconfiguration have elevated demand for warehouses, distribution centers, and manufacturing space across the state. Denver, in particular, has solidified its role as a logistics hub for the Mountain West – its central location and extensive highway network (I-25, I-70) make it ideal for regional distribution. Big-box fulfillment centers have sprung up around the Denver metro (especially near Denver International Airport and along major interstates) to serve the rapidly expanding consumer base in Colorado and neighboring states. This development boom did nudge industrial vacancy rates slightly upward from their historic lows; Denver’s overall industrial vacancy hovered around the mid-single digits (roughly 6–7% recently, up from the 4–5% range a couple years ago). Even so, vacancy remains low by historical standards, and most new warehouses are leasing up quickly – roughly three-quarters of recent completions were pre-leased or build-to-suit for specific tenants (https://www.cbre.com/insights/figures/denver-industrial-figures-q1-2025).

Key drivers for industrial real estate include the continued rise of online retail, the growth of Colorado’s population (which means more goods moving into local markets), and diversification in industries like aerospace, defense, and brewing/cannabis production that require industrial facilities. In Colorado Springs, for instance, the industrial vacancy rate is just 4.7% – notably below the national average – thanks to steady demand from aerospace and cybersecurity firms and limited new construction in that market (https://www.hoffleigh.com/colorado-springs-q4-2024-market-reports/). Statewide, new supply is finally catching up to pent-up demand, which has created a more balanced environment. Tenants have a bit more negotiating power today than during the frenzied years of 2021-2022; older industrial properties, in particular, may sit vacant longer if they lack modern clear heights or amenities. There’s a clear “flight to quality” in industrial too, with companies favoring modern logistics facilities that offer high ceilings, energy efficiency, and proximity to transportation corridors (https://www.cbre.com/insights/books/us-real-estate-market-outlook-2025). Some older warehouses in less accessible areas are seeing higher vacancy until they get upgraded or repositioned.

Looking ahead, the industrial market in Colorado is expected to tighten again as we move through 2025. The construction pipeline has begun to taper off – fewer projects are breaking ground now due to higher financing costs and a bit of caution among developers. As the existing new inventory gets absorbed, conditions could shift back in favor of landlords, with rents potentially ticking up for the best spaces by late 2025 (https://www.cbre.com/insights/books/us-real-estate-market-outlook-2025). Investors remain bullish on industrial assets in Colorado, given their strong long-term fundamentals. We are seeing continued interest in distribution centers and flex industrial parks from institutional buyers, although investment sales volumes slowed in the past year as buyers and sellers worked through pricing adjustments. For those looking to invest in Colorado industrial property, opportunities lie in both core warehouse assets (steady income from credit tenants) and in value-add plays (older properties that can be modernized or small-bay industrial condos catering to local small businesses). Overall, the industrial sector is a cornerstone of Colorado’s CRE market – supported by an economy that increasingly runs on logistics and digital commerce.

Retail Market Trends

Colorado’s retail real estate landscape has proven surprisingly resilient. In fact, Colorado retail leasing trends in 2025 show that brick-and-mortar retail is alive and well, albeit evolved. The retail sector currently enjoys the lowest vacancy rate of any commercial property type – a reflection of limited new retail development and a rebounding consumer base. Across Colorado’s cities, shoppers are back in force at stores, restaurants, and entertainment venues, making retailers eager to lease quality space. Landlords report that well-located shopping centers and street retail districts have a waiting list of tenants, especially in growing suburban areas. For example, in Colorado Springs the retail availability rate is only about 5.9% as of Q4 2024, below the 10-year historical average vacancy for that market. With so few new shopping centers built in recent years, existing retail properties are benefitting from a supply-demand imbalance. Tenants looking to expand in the Springs (and similarly in the Denver suburbs) sometimes struggle to find suitable space, which in turn has kept upward pressure on rents.

A key trend in retail is the rise of experiential and service-oriented tenants. Traditional malls anchored by department stores have given way to open-air lifestyle centers and mixed-use developments. Colorado developers are integrating retail into mixed-use projects – for instance, Denver’s newer apartment and office complexes often feature ground-floor retail: coffee shops, breweries, fitness studios, and boutiques that create vibrant 18-hour environments. This live-work-play integration has been very successful in neighborhoods like Denver’s RiNo and Cherry Creek, as well as downtown Colorado Springs, where new residential projects bring captive audiences for nearby retailers. Consumers in Colorado, known for their active lifestyles, are drawn to retail that offers experiences (dining, entertainment, wellness) or convenience (grocery, healthcare, essential services). Thus, grocery-anchored shopping centers, specialty food halls, and outdoor gear outfitters are performing well.

Another factor supporting retail is the strength of the Colorado consumer. The state’s employment and income growth have been solid, and tourism has bounced back (benefiting retail in mountain towns and Denver’s downtown alike). While e-commerce remains a competitor, many retailers have adapted by using physical stores as part of their omni-channel strategy (for example, buy-online-pickup-in-store, or serving as showrooms). The bottom line: retail vacancy in Colorado is low, rents are gradually rising, and investors are taking notice. Nationally, institutional capital is starting to return to the retail sector (https://www.cbre.com/insights/books/us-real-estate-market-outlook-2025), and Colorado is no exception. In 2025 we’re seeing more buyers for assets like well-performing neighborhood centers and single-tenant net-leased stores (e.g., pharmacies, grocery stores). Those assets offer stable cash flow and often sit on valuable real estate in growing communities. Retail will likely continue to evolve – expect more entertainment concepts, local artisan markets, and experiential brands – but it’s clear that brick-and-mortar retail in Colorado has a strong future. Limited new supply and sustained consumer demand have created a landlord’s market in many areas, so for investors, acquiring quality retail properties in Colorado’s growth corridors can be a savvy play.

Multifamily Market Trends

The multifamily sector in Colorado remains robust and is a favorite among real estate investors. A combination of factors – job growth, in-migration of young professionals, and the high cost of single-family housing – keeps rental demand high in Colorado’s metro areas. Denver and its surrounding communities have seen a remarkable apartment construction boom over the last few years. Dozens of new multifamily projects delivered in the Denver metro during 2022–2024, adding thousands of units ranging from luxury high-rises downtown to garden-style communities in the suburbs. This influx of new supply did lead to a short-term moderation in rent growth; in fact, in some submarkets rents flattened or even dipped slightly in 2024 as all those new units hit the market and lease-up competitions offered concessions. Denver’s apartment market, for instance, experienced a period of softer rents due to temporary oversupply (https://www.nar.realtor/sites/default/files/2025-04/2025-03-commercial-real-estate-market-insights-report-04-02-2025.pdf). However, demand has been quick to catch up. By early 2025, absorption of multifamily units was very strong – nationally, net apartment absorption jumped 46% year-over-year – and Colorado was part of that story as renters eagerly filled new developments.

Despite the wave of construction, apartment vacancy rates in Colorado have remained fairly steady and manageable. Statewide, multifamily vacancy is around 6–8%, which is considered a healthy equilibrium that allows renters some options while still enabling landlords to maintain revenue. In Denver, vacancies ticked up with the new deliveries but are expected to edge back down as the market absorbs the units and developers pull back on building. Importantly, the pace of new construction is slowing: higher interest rates and construction costs have made it harder for developers to pencil out new projects, and many builders are taking a pause. According to recent reports, the number of multifamily units under construction nationwide in early 2025 is down about one-third from a year prior (https://www.nar.realtor/sites/default/files/2025-04/2025-03-commercial-real-estate-market-insights-report-04-02-2025.pdf). In Colorado, we see fewer cranes on the skyline now than a couple of years ago. This pullback in supply, combined with continued population gains, sets the stage for apartment occupancy to tighten and rent growth to resume, especially in late 2025 and beyond. In other words, the huge supply surge is tapering, and robust tenant demand is catching up – a positive sign for multifamily owners.

Across Colorado’s regions, multifamily fundamentals are strong. The Denver metro is the largest apartment market, offering everything from urban core high-rises to suburban townhome-style complexes. Colorado Springs and Fort Collins have smaller multifamily markets but equally high demand – Colorado Springs benefits from military personnel and defense contractors who often rent, while Fort Collins has Colorado State University, feeding demand for both student housing and young professional rentals. Even the Western Slope markets (like Grand Junction) are seeing increased interest in multifamily development as their populations grow and housing remains in short supply. Rents in Colorado on the whole are moderate relative to coastal states, but the state did see some of the nation’s fastest rent increases in the late 2010s. Now rents have stabilized, giving renters a bit of breathing room, but landlords still enjoy solid occupancy and steady income. The overall outlook for multifamily is very favorable: as long as buying a home in Colorado remains expensive (median home prices are high, and interest rates for mortgages are up), many households will opt to rent, ensuring a deep renter pool. Furthermore, the state and local governments are encouraging more housing development (for example, Denver has discussed incentives for affordable housing, and Colorado’s governor signed legislation to promote modular housing solutions for affordability). These initiatives could spur additional multifamily projects, particularly in the affordable and workforce housing segment, which is much needed. For investors, Colorado multifamily properties represent a relatively low-risk, high-demand asset class. From Class A luxury communities in Denver to value-add apartment complexes in secondary cities, opportunities span the spectrum. And because multifamily performance is closely tied to job and population growth – factors which Colorado continues to exhibit – the sector is expected to remain a pillar of Colorado’s CRE market growth.

Capital Markets & Investment Climate

The capital markets environment for Colorado commercial real estate in 2025 is characterized by cautious optimism. Over the past two years, the Federal Reserve’s interest rate hikes significantly raised the cost of capital, which slowed down transaction volumes as investors recalibrated their return expectations. Entering 2025, however, the interest rate outlook is improving: the Fed has paused further rate increases, with the benchmark rate holding steady in early 2025, and there’s even speculation of rate cuts later in the year if inflation continues to ease. This stabilization of rates is bringing some investors off the sidelines. Debt financing for CRE is still more expensive than it was a few years ago, but lenders and borrowers are adjusting to the “new normal” of moderate interest rates (far from the ultra-low rates of the 2010s, but also off the peak highs). As a result, we anticipate a moderate recovery in investment activity. In fact, industry experts predict that 2025 will see an uptick in deal volume and capital deployment compared to the slowdown of 2023-2024 (https://www.cbre.com/insights/books/us-real-estate-market-outlook-2025).

One notable trend is a slight compression of capitalization rates expected in late 2025. During the high-rate environment, property values in some sectors (like office) fell and cap rates rose, reflecting higher yield demands. Now, with more economic clarity, investors are once again willing to aggressively pursue deals in sectors that have strong fundamentals. Colorado’s industrial and multifamily properties, for instance, remain in high demand and often attract multiple offers when brought to market. We are seeing cap rates for prime multifamily and industrial assets in Denver beginning to stabilize and even inch down, as competition among buyers heats up for limited supply. Investors savvy enough to buy during the recent lull may have locked in higher yields; going forward, those yields could compress, translating into value gains for early movers. In short, there’s a window now to secure higher returns on quality Colorado assets – a window that may close as more buyers re-enter the fray.

Financing in 2025 is available but selective. Banks and commercial mortgage lenders have tightened underwriting standards somewhat – they favor borrowers with strong track records and properties with stable cash flow. Development deals, especially speculative ones, are harder to finance unless there’s clear demand or partial pre-leasing (this has contributed to the slowdown in new construction starts). That said, plenty of capital is out there for the right deals. Life insurance companies, debt funds, and local banks are all actively lending in Colorado, particularly for multifamily and industrial projects which they perceive as lower risk. The CMBS (commercial mortgage-backed securities) market and other securitized lenders have been a bit sluggish due to interest rate volatility, but could see more activity as rates level off. On the equity side, joint ventures and partnerships are being formed to go after bigger opportunities – for instance, a local Colorado developer might partner with an out-of-state private equity firm to acquire a portfolio of value-add retail centers or to convert an old office building. We also see continued interest in sale-leasebacks and other financial strategies as companies seek to monetize real estate assets, which can create unique investment openings (especially in sectors like retail and office).

Overall, Colorado’s pro-business climate and growth metrics are keeping investors optimistic. The phrase “invest in Colorado real estate” is becoming a mantra for those looking for solid long-term fundamentals. As we move through 2025, we expect more buyers and sellers to find their footing and transact. There may be some distress opportunities in areas like older offices or hospitality properties (which we haven’t covered in depth here) – opportunistic investors will be watching those. But for the mainstream sectors, the trend is positive: improving fundamentals and a gradually loosening capital market are setting the stage for increased investment. Indeed, the stage is set for Colorado’s CRE market to attract a wave of capital chasing the state’s growth story and reliable returns.

Regional Spotlight: Denver, Colorado Springs, Fort Collins & Western Slope

Denver Metro: The Denver metropolitan area is the engine of Colorado’s CRE market. Home to the state’s capital and largest city, the Denver metro encompasses a broad range of submarkets – from the skyscrapers of Downtown Denver and the tech offices of Boulder, to sprawling suburban commercial centers in places like the Denver Tech Center, Lakewood, and Aurora. Denver’s economy is diverse and robust, with significant employment in technology, finance, healthcare, energy, and government. This economic might translates into strong demand across all property types. Denver leads the state in office inventory (and, as discussed, has some challenges there currently), but it also leads in new development and innovation. Major projects like the redevelopment of Union Station and the RiNo (River North) Arts District have transformed Denver’s urban core, adding trendy offices, apartments, hotels, and retail. The metro’s population growth – Denver’s population and its suburbs have seen steady increases – ensures ongoing need for housing and services. Denver is also a transportation nexus (with one of the nation’s busiest airports and major highways), fueling its industrial/logistics sector. For investors, Denver offers scale and liquidity; it’s the market where you’ll find the largest deals and a deep bench of buyers, sellers, and brokers. In 2025, the outlook for Denver is one of gradual recovery in office, continued strength in industrial and multifamily, and vibrant retail in thriving neighborhoods. It remains the primary target for institutional investors entering Colorado. That said, competition in Denver can be stiff, and cap rates for prime assets are accordingly low. Savvy investors might look for submarket plays – for instance, targeting suburban office parks that could benefit from a flight-to-suburb trend, or older industrial properties near downtown that could be repositioned for new uses (like creative office or last-mile distribution).

Colorado Springs: Located about 70 miles south of Denver, Colorado Springs is the state’s second-largest city and a vital CRE market in its own right. The city has experienced robust population growth, thanks in part to a high quality of life (nestled at the base of Pikes Peak) and a comparatively lower cost of living than Denver. Key economic drivers in Colorado Springs include the military (several major installations such as the U.S. Air Force Academy, Fort Carson, and Peterson Space Force Base are here), aerospace and defense industries, tourism, and a budding tech sector. The city’s commercial real estate reflects this stable, government- and defense-influenced economy. Office space in Colorado Springs is largely occupied by defense contractors, tech firms, and local businesses; as noted, its office market has been more stable than Denver’s, with moderate vacancy and even some rent growth. Industrial properties in the Springs are in high demand – not only for military/aerospace suppliers, but also for regional distribution (some companies prefer to serve southern Colorado and northern New Mexico from Colorado Springs to avoid Denver congestion). Retail in Colorado Springs is healthy, supported by a growing consumer base; the city’s north side (areas like Briargate and Northgate) has seen a boom in new housing and retail centers to serve it. The downtown area of Colorado Springs has also been revitalizing, with mixed-use developments, apartments, and restaurants drawing people back to the urban core. For investors, Colorado Springs offers a slightly more affordable entry point than Denver, with cap rates often a bit higher and property values a bit lower, but with very strong fundamentals. Many investors priced out of Denver have turned their attention to Colorado Springs in recent years, finding plenty of opportunity in its office parks, shopping centers, and apartment communities. As the city continues to grow (it’s on track to eventually surpass 500,000 residents), its CRE market is becoming more liquid and attracting larger national players. The outlook is positive: Colorado Springs is expected to see continued expansion in all CRE sectors, buoyed by its stable economic anchors and population gains.

Fort Collins/Northern Colorado: Fort Collins anchors the Northern Colorado region, which also includes cities like Loveland, Greeley, Windsor, and Longmont. This region is sometimes overlooked, but it’s a burgeoning market with a projected population that could approach 1 million in the coming decades. Fort Collins itself is a vibrant college town (home to Colorado State University) with a growing tech and innovation scene. Companies in software, clean energy, and bioscience have a presence here, attracted by the talent coming out of CSU and the area’s high quality of life. As a result, Fort Collins has a dynamic office and R&D space market – smaller in scale than Denver or Colorado Springs, but very tight in terms of vacancy. The industrial market in Northern Colorado is diverse: it ranges from traditional manufacturing and agricultural processing (Greeley, for example, has strong agriculture and food processing roots) to modern warehouses serving the Front Range corridor. The region’s retail is centered around serving its fast-growing communities; for instance, Loveland’s Centerra development is a large retail power center that pulls shoppers from across Northern Colorado. Multifamily housing is in huge demand in Fort Collins and surrounding areas, as both students and the influx of new residents seek rentals. Rents have been rising and vacancy is typically low (Fort Collins often reports apartment vacancies in the 3-5% range in recent years). One challenge for Northern Colorado has been keeping up with infrastructure and development to match the population growth. But local governments have been proactive, investing in road expansions and considering transit options to connect to the Denver metro. For investors, Northern Colorado offers strong growth potential. It’s a market where one can still find development sites and value-add opportunities at lower cost than Denver. The presence of a major university also makes it somewhat recession-resilient. We see opportunities in developing mixed-use “town centers” in rapidly growing suburbs, building industrial facilities to serve local businesses, and providing much-needed housing. The Northern Colorado CRE market is poised to steadily expand, and those who invest early could benefit greatly as the region matures.

Western Slope: The “Western Slope” refers to the part of Colorado west of the Continental Divide – essentially the western half of the state, which is separated from the Front Range urban corridor by the Rocky Mountains. This region is more rural and mountainous, but it contains important economic centers and unique real estate opportunities. The largest city on the Western Slope is Grand Junction, which serves as the commercial and transportation hub for western Colorado and eastern Utah. Grand Junction’s economy has historically been tied to energy (oil and gas extraction) and agriculture, but in recent years it has diversified with healthcare (it boasts a major regional medical center), education (Colorado Mesa University), and outdoor recreation industries. Commercial real estate in Grand Junction includes a mix of retail (serving the region’s shoppers), office (often medical or professional services), and industrial (some warehousing, light manufacturing, and equipment yards for energy companies). Notably, Grand Junction’s industrial market has been picking up as distribution logistics extend along Interstate 70 – the city’s location roughly midway between Denver and Salt Lake City makes it a potential logistics node. In fact, the Western Slope region has seen interest from companies looking for alternatives to the crowded Front Range, whether for distribution or even remote worker hubs. Beyond Grand Junction, the Western Slope is home to numerous resort towns and smaller cities: Aspen, Vail, Steamboat Springs, Durango, Montrose, Glenwood Springs, to name a few. Many of these are famous resort communities where tourism and second-home ownership drive the real estate market. In places like Aspen or Vail, commercial real estate is largely hospitality (hotels, restaurants) and high-end retail catering to tourists. These markets have very high property values and limited inventory – often a niche for specialized investors (including REITs or private hospitality groups) who understand resort dynamics.

On the Western Slope, one of the interesting trends is the growth of smaller cities like Montrose and Delta, which are seeing people relocate for a quieter lifestyle or retirement, as well as spillover from the expensive resort areas. This creates opportunities for development of shopping centers, medical offices, and housing in those communities. For example, Montrose has been steadily growing and adding new retailers and services to serve both locals and people from surrounding rural counties. Investors looking at the Western Slope should be mindful that these markets are less liquid and smaller scale – but they can offer higher cap rates and less competition. An industrial or retail property in Grand Junction might trade at a cap rate a few percentage points higher than a comparable property in Denver, reflecting the smaller buyer pool, but if the local economy is on an upswing, that can be a very attractive buy. Additionally, the Western Slope stands to benefit from any initiatives in renewable energy (there’s interest in solar and wind projects in the region’s wide-open spaces) and infrastructure improvements (expanding highways or improving rail can make the area more accessible). In summary, the Western Slope is a diverse region: from the busy commercial streets of downtown Grand Junction to the ski village of Telluride, it offers a different flavor of Colorado real estate. It’s a region where patient, long-term investors can find gems – whether it’s a redevelopment opportunity in a charming mountain town or land positioned for the next wave of growth. As Colorado grows, expect more attention to flow toward the Western Slope’s opportunities, bridging the gap between its historic roots and future potential.

Investment Opportunities and Strategies in 2025

Given the trends outlined above, what are the best investment opportunities in Colorado’s commercial real estate market for 2025? For investors and developers strategizing their next moves, here are several angles to consider:

Value-Add and Repurposing Plays (Office): The challenges in the office sector, particularly in downtown Denver, present an opportunity to acquire properties at a significant discount. Investors with a higher risk tolerance can look at distressed office buildings in prime locations and plan repositioning strategies. This might include renovating and modernizing the building to attract new types of tenants (such as turning a traditional office building into a hub for flexible co-working or life sciences lab space), or even pursuing a conversion to residential or hotel use if feasible. Not every office tower can be converted to apartments, but those that can (with the right floor plates and windows) might see outsized gains by meeting the strong demand for urban housing. Additionally, suburban office parks that were out of favor may become attractive in a hybrid work world – if you can acquire a well-located suburban office building and update it with amenities (gyms, cafes, collaborative outdoor spaces), you may attract companies looking to decentralize from downtown. Essentially, it’s a time for creative repositioning in the office realm. Investors with redevelopment expertise could find unique deals in Denver’s office market and beyond, turning an underperforming asset into a high-performing one through vision and capital.
Industrial Development & Expansion: While the industrial boom is cooling slightly, there are still gaps in the market that present development opportunities. For example, demand remains high for modern “last-mile” distribution centers near population centers. An investor-developer might target sites in growing suburbs of Denver or Colorado Springs for mid-size warehouses that cater to e-commerce delivery firms or logistics companies needing to be closer to end consumers. Cold storage is another niche – Colorado’s strong grocery and food industries (as well as pharmaceuticals) mean refrigerated warehouse space is crucial, yet such facilities are in short supply. Building or retrofitting industrial properties to add cold storage capabilities could command premium rents. Additionally, smaller industrial condos or flex spaces (1,000–5,000 SF units) for local small businesses are in demand in many Colorado cities; a savvy developer could build a complex of small-bay units for tradespeople, light manufacturers, and startups, an area often overlooked by big institutional builders. Overall, although big speculative industrial projects have slowed, tailored industrial development aligned with specific needs can yield great returns. Construction costs are higher now, so partnerships and pre-leases (or build-to-suit agreements) can mitigate risk.
Multifamily Acquisition and Development: Multifamily remains a foundation of investable real estate in Colorado. On the acquisition side, investors can seek out existing apartment communities with value-add potential – perhaps 1980s or 1990s-built properties in the Denver suburbs or secondary cities that could benefit from renovation. By upgrading unit interiors, adding amenities like dog parks or package lockers, and improving property management, owners can push rents to market levels and significantly increase NOI (net operating income). Given the strong occupancy rates, the risk of not filling units is low, especially if the property is well-located. On the development side, there is opportunity in building multifamily in undersupplied markets. Colorado Springs, for example, has seen comparatively less multifamily construction than Denver but has a growing population of renters – a new apartment complex there could lease up quickly. Smaller cities like Loveland, Greeley, or Grand Junction also need quality rental housing; developers who are willing to venture outside Denver can find cheaper land and possibly tap into local incentives (some municipalities offer fee waivers or fast-track approvals for housing projects). One particular opportunity is in the affordable and workforce housing segment: with high rents, there’s a pressing need for housing that is attainable for middle-income workers. Developers who utilize programs like Low-Income Housing Tax Credits (LIHTC) or public-private partnerships can build workforce housing in Colorado and secure reliable returns (and in many cases, these projects face less competition and have waiting lists of tenants). Multifamily fundamentals suggest that any new units delivered in 2025-2027 will be met with solid demand, so investors should feel confident in the rental housing space.
Retail in Growth Corridors: Retail isn’t often the first asset class mentioned for “opportunity” these days, but in Colorado’s context, there are promising plays. Neighborhood retail centers in areas with rapid residential growth are primed for success. Consider the suburbs of Denver (like Parker, Thornton, or Reunion area near Commerce City) or expanding towns along the Front Range (Castle Rock, Erie, Windsor, etc.) – many have new housing developments and incoming residents but limited retail to serve them. Developing or acquiring a well-located shopping center in these growth zones can lock in a dominant position in the local market. Tenants such as grocery stores, daycares, medical clinics, and quick-service restaurants are actively expanding in Colorado to keep up with population shifts. Investors might find opportunities to purchase parcels of land at the edge of new subdivisions and develop retail or mixed-use “town centers” in coordination with homebuilders and city planners. Additionally, older strip malls that haven’t been updated can be bought at attractive prices and redeveloped into modern retail plazas or even partially redeployed to other uses (for instance, adding a pad for a drive-thru coffee or a small medical office building on an oversized parking lot). With retail’s improving metrics – low vacancy and rising rents – the timing is good to invest in well-conceived retail projects. One strategy is focusing on service-based and experiential tenants, which are internet-resistant and cater to Colorado’s active communities (think gyms, yoga studios, brewpubs, local farm-to-table markets, etc.). These types of tenants create local destinations that strengthen a center’s performance and value.
Emerging Submarkets and Land Banking: For long-term investors, looking beyond the headline markets can pay off. Colorado has numerous smaller cities and towns poised for growth, and investing there early (whether through existing properties or raw land) could yield outsized returns over time. For example, towns on the periphery of metro areas – like Falcon (near Colorado Springs), Mead (between Denver and Fort Collins), or the Tri-Town area (Firestone/Frederick/Dacono) north of Denver – are rapidly adding residents. Commercial development in some of these places is just beginning. An investor could “land bank” a tract of land at a highway interchange or a future busy intersection and wait for demand to catch up, or entitle it for a future commercial use and sell to a developer later. Alternatively, buying the only grocery-anchored center or the only self-storage facility in a small but growing town can be a brilliant monopoly-like investment. On the Western Slope, as mentioned, markets like Montrose or Rifle are gradually expanding beyond their traditional industries, so picking up key assets there (like a fully leased industrial yard or a downtown retail building) might provide stable cash flow now and significant appreciation as the area grows. These emerging submarket investments do require a keen understanding of local economic drivers and often a willingness to hold longer-term. But the competitive landscape in smaller markets is far less intense – you might be one of only a few outside investors looking, which means you can often negotiate favorable prices and structures. Keep an eye on where Colorado’s next rooftops and jobs are heading, and you can get in on the ground floor.

Across all these strategies, one common theme is to align with Colorado’s macro trends: population growth, economic diversification, and lifestyle preferences. Investors who provide the types of properties that Colorado’s businesses and residents need will find plenty of upside. It’s a pro-development, pro-investment environment overall – local communities generally welcome responsible growth, especially when it brings jobs or addresses housing shortages. By staying attuned to regional developments (new employers moving in, infrastructure projects, zoning changes) and being creative in deal-making, investors can uncover a wealth of opportunities in the Colorado CRE market.

Discovering Colorado CRE Deals on Brevitas

In today’s competitive environment, finding the right commercial deal often comes down to having the right platform and connections. Brevitas is one such platform that has become an invaluable tool for real estate investors and brokers seeking opportunities in Colorado and beyond. Brevitas is a global commercial real estate marketplace that features a vast database of properties – including many private and off-market listings – allowing users to discover deals that might not be visible on the open market. For those looking to invest in Colorado real estate, Brevitas offers a targeted way to search by location, asset type, price range, and more, streamlining the deal sourcing process.

The platform isn’t just for finding active listings – it’s also a networking and deal-making hub. Investors can set up custom search alerts on Brevitas to be notified when new Colorado properties meeting their criteria hit the marketplace. For example, you could create an alert for “Denver retail properties under $5M” or “Multifamily in Colorado Springs 50+ units,” and Brevitas will email you new matches, ensuring you don’t miss out on fresh opportunities. Additionally, Brevitas allows users to post their acquisition criteria as Wants. If you have a specific mandate (say you represent a 1031 exchange buyer looking for a NNN leased asset in Colorado), you can post that need, and brokers on the platform can respond with potential deals that fit – including those not officially listed. This proactive deal sourcing can surface opportunities that you might never see listed publicly.

Brevitas’s ease of use and expansive reach make it particularly well-suited for a market like Colorado, where there is a mix of big institutional listings and more private, relationship-driven deals. The platform has numerous Colorado-based brokers and sellers as members, which means a rich selection of local deals. At the same time, it attracts national and international investors, which increases the pool of potential buyers for anyone looking to sell or syndicate in Colorado. For brokers, posting a listing on Brevitas can quickly generate interest from qualified buyers worldwide who are actively seeking Colorado properties.

Importantly, Brevitas provides a secure environment for off-market transactions. Sellers who prefer discretion can list properties privately (only exposing details to select principals) and avoid signaling to the broader market. This is ideal for scenarios like an owner who wants to test the waters on selling a shopping center in Boulder without worrying tenants or committing to a public listing – Brevitas can quietly connect that owner with a serious buyer, facilitating a smooth off-market sale. For buyers, this means access to hidden inventory that your competitors might not know about.

In summary, leveraging Brevitas can be a game-changer for investors eyeing Colorado CRE opportunities. It accelerates the deal-finding process and broadens your reach. Instead of relying solely on local contacts or combing multiple listing sites, you have a one-stop platform aggregating opportunities across Denver, Colorado Springs, Fort Collins, the Western Slope, and everywhere in between. As Colorado’s commercial real estate market continues to thrive in 2025, having Brevitas at your fingertips ensures you stay ahead of the curve – identifying trends, spotting deals early, and connecting with the right people to turn opportunities into closed transactions. Whether you’re a seasoned investor expanding your portfolio or a newcomer looking for that first great deal, Brevitas is a powerful ally in navigating Colorado’s exciting CRE landscape.