What is different about buying commercial property in Breckenridge, Vail, Aspen, Telluride or Steamboat: seasonality, workforce housing, zoning and price.
Ski-town commercial property is the retail, office, lodging, industrial and mixed-use space in Colorado resort communities such as Aspen, Breckenridge, Steamboat Springs, Telluride and the Roaring Fork Valley. Its value rests on a tourism economy and on very little buildable land.
Buying in a ski town is different in five ways. Space is scarce. Income follows the snow. A few big deals move the numbers. Workforce housing shapes demand. Local taxes change often. Through all of it, prices have held up better than deal counts.
This post takes each difference in turn, then covers which property types work and what to check before you buy. RMCRE has a local broker in the resort towns it covers, such as RMCRE’s Aspen-Snowmass broker.
What Makes Ski-Town Commercial Real Estate Different?
Ski-town commercial real estate is different because land is limited and the economy is seasonal and driven by tourism.
- Scarcity: Downtown Aspen commercial vacancy is near 1.6%.
- Seasonal income: Telluride had its slowest January for new contracts since 2012, after low snow and a ski patrol strike.
- Big deals: Five sales of $10 million or more made up 74% of Aspen’s first-half 2026 commercial volume.
- Housing: The Roaring Fork Valley is about 7,000 homes short.
- Local taxes: Basalt raised its lodging tax to 6% this year.
A ski town’s buildings also sit inside a web of rules that most Front Range buyers never meet: short-term rental caps, voter-approved lodging taxes, deed-restricted housing and wildfire codes. Each one changes what a building can earn.
Ski-Town Markets at a Glance
RMCRE’s partner brokers publish market updates for each resort town. The table pulls the latest commercial figures from those reports, with the period named.
| Town | Commercial sales | Cap rate | Other signal | Period |
|---|---|---|---|---|
| Aspen | 18 sales, $102.5 million (3 sales, $13.2 million a year earlier) | 4.5% to 6.0% | Downtown vacancy near 1.6% | First half 2026 |
| Roaring Fork Valley | 7 sales, about $35.3 million | About 4% to 6% | Office and flex vacancy ticking up | January 2026 |
| Steamboat Springs | 21 sales, about $17.1 million | 5.5% to 6% | Vacancy about 7% | June 2026 YTD |
| Summit County | 12 sales, about $30.4 million | Not reported | Breckenridge short-term lodging tax down 5.4% | Q3 2025 |
| Telluride | 3 sales, $2.81 million (down 46%) | Not reported | 72 new contracts across all property in Q1 | Q1 2026 |
| Pagosa Springs | No commercial closings (3 a year earlier) | Not reported | NNN rents $18 to $24 per square foot | Q2 2026 |
Two patterns stand out. Volume swings wildly because so few buildings trade. Cap rates stay low because owners rarely need to sell. For the statewide picture, see Colorado’s commercial market town by town.
Scarce Space Keeps Prices and Rents High
Ski towns have little land to build on, so existing buildings trade at high prices and low cap rates.
Aspen prime retail rents run about $275 to $325 per square foot, and office rents about $66 to $100. Aspen cap rates sit at 4.5% to 6.0%, and stabilized Roaring Fork Valley assets at 4% to 6%. One Basalt property went under contract at a 2% cap rate, with the buyer planning rent increases. Office space in the valley is shrinking: a three-story office building is being turned into a high-end hotel. Compare these figures with what counts as a good cap rate in Colorado.
Inventory is thin even in the larger resort towns. In Steamboat Springs, often fewer than 15 to 20 commercial properties are listed for sale citywide at any one time. Light industrial and warehouse space there routinely trades at $300 to $400 per square foot, and Lincoln Avenue storefronts see near-zero vacancy (Q1 2026 report).
Much of the trading never reaches the open market. The Roaring Fork Valley’s Q2 2026 update notes that most of the valley’s commercial activity this year happened off market. A buyer without a local broker often never sees the building.
Income Follows the Snow
In a ski town, a bad snow year or a resort closure shows up in sales, taxes and rents within weeks.
In January 2026, Telluride saw only 12 new contracts after a low snowpack and a ski-area shutdown from December 27 to January 10. Buying recovered in February and March once the mountain reopened. Breckenridge sales tax was projected to fall 3% in 2026, and Vail’s 6.8% from 2024 levels. Steamboat lodging taxes fell 8% in the first half of 2026.
Underwrite tourism-dependent property conservatively, and assume some lost revenue in a bad season.
The Telluride recovery shows the other side. By the end of Q1 2026, the region had 72 new contracts, 51 closed sales and nearly $310 million in pending volume. Air bookings that fell 40% during the strike returned to year-over-year levels within weeks. A bad January hurt, but it did not change the long-run demand.
Worked Example: Stress-Testing a Bad Season
Stress-testing means running the numbers again with a weaker year, to see whether the property still pays its debt. The figures below are an illustration, not market data.
- A mixed-use building earns $300,000 in net operating income (NOI) in a normal year.
- At a 5.0% cap rate, its value is $300,000 / 0.05 = $6,000,000.
- A poor snow year cuts percentage rent and parking income, and NOI falls 10% to $270,000.
- At the same 5.0% cap rate, the value drops to $5,400,000, a $600,000 swing.
- If annual debt payments are $240,000, the debt service coverage ratio (DSCR) falls from 1.25 to 1.125.
Many lenders look for a DSCR near or above 1.25, so one bad season can put a loan covenant at risk. Run this test before you sign, and learn how lenders read DSCR.
A Few Big Deals Move the Numbers
With so few sales, one large deal can swing a ski town’s figures, so read market reports with care.
Aspen’s commercial volume jumped from $13.2 million to $102.5 million in the first half of 2026, mostly on five large sales. Summit County commercial volume rose 129% in Q3 2025 to $30.4 million, in a quarter that included the $15 million sale of the Summit Medical Office Building in Frisco. Telluride’s commercial volume fell 46% in Q1 2026 on the same number of transactions as a year before: three. Small samples call for care, covered in how to value property when sales are few.
The Roaring Fork Valley shows the same effect inside a single month. In January 2026, the 210 Aspen Airport Business Center sale at about $14.99 million made up over 40% of the valley’s roughly $35.3 million in commercial volume. Treat a single quarter’s average price per square foot as a clue, not a benchmark.
Workforce Housing Shapes Demand
Businesses in a ski town can only grow if their staff can live nearby, so housing is part of every deal.
The Roaring Fork Valley is still about 7,000 housing units short. Harvest Roaring Fork, between Glenwood Springs and Carbondale, proposes 1,500 homes, 55,000 square feet of commercial space and a 120-room hotel. In Frisco, the $90.5 million Foote’s Rest project pairs an 80-room hotel with dedicated employee housing. A proposed state bill would let ski-town governments ask voters to approve a tax on vacant homes; over 40% of homes in these communities sit unoccupied.
Housing money is also coming from visitors. Aspen sends at least 70% of its short-term rental tax receipts to community affordable housing, and Steamboat Springs uses its short-term rental tax for housing projects such as the Yampa Valley Housing Authority’s Brown Ranch. For a commercial buyer, a tenant’s housing plan is now as important as its credit.
Local Taxes and Rules to Check
Lodging taxes, vacancy taxes and wildfire rules can change the numbers of a resort-town deal.
- Basalt’s lodging tax rose to 6% at the start of 2026.
- Archuleta County votes on November 3, 2026 on a 6% lodging tax outside Pagosa Springs town limits, starting January 1, 2027.
- Vacant-home taxes are being proposed for ski towns.
- Wildfire-area building rules are tightening, as with Colorado Springs’ revised wildland-urban interface rules.
Property tax is moving the other way; see taxes on commercial property in Colorado.
How Colorado Taxes a Night’s Stay
A lodging tax is a tax on short stays in hotels, motels, inns and rentals, charged to the guest on top of the room rate. In Colorado it stacks in layers.
- State sales tax: Colorado charges its 2.90% sales tax on rooms and accommodations.
- Local sales tax: Cities, counties and special districts add their own sales tax on the same stay.
- County lodging tax: Counties may add a lodging tax, reported quarterly to the Department of Revenue.
- Local marketing district tax: A district formed on a petition by commercial real estate owners can tax rooms to fund marketing.
- City lodging and short-term rental taxes: Many resort towns add their own voter-approved taxes.
Stays of at least 30 consecutive days by a permanent resident under a written agreement are exempt from the state tax, and county and marketing district taxes follow the same exemption. That 30-day line is why some ski-town owners shift units to long-term leases.
Short-Term Rental Rules by Town
A short-term rental (STR) is a home or unit rented to visitors for less than 30 days. Resort towns now license, cap and tax them, which affects mixed-use buildings with upstairs units and any lodging deal.
| Town | Licensing and caps | Short-term rental tax |
|---|---|---|
| Aspen | City permit required; three permit types | 5% for owner-occupied or lodge-exempt permits, 10% for “classic” investment permits, on stays from May 1, 2023, on top of a 2% city lodging tax |
| Steamboat Springs | License required; Zone A unlimited, six Zone B subzones capped at 5 to 20 licenses each, no new STRs in Zone C | 9%, approved by voters on November 8, 2022 |
| Breckenridge | Nonexempt STR licenses capped at 2,200 by the Town Council in 2021 | Town sales and accommodation taxes apply |
In Aspen, the city puts the total tax on a night’s stay in 2026 at 12.35% for a traditional lodge, 17.35% for an owner-occupied or lodge-exempt STR and 22.35% for a classic STR. That gap gives hotels and lodges a price edge over investor-owned rentals.
Before you buy a building with residential units, confirm in writing whether each unit holds a license, and whether that license survives a sale. In Breckenridge, the cap ordinance ties several exemptions to how a title is transferred.
Wildfire Codes Are Changing
Colorado’s Wildfire Resiliency Code Board, created by Senate Bill 23-166, adopted a statewide wildfire code on July 1, 2025. Local governments with areas in the wildland-urban interface were given until April 1, 2026 to adopt it or a stricter code, though the Colorado Municipal League reported pushback on that timeline. Ask the local building department which version applies before you plan an addition or a rebuild.
Which Property Types Work in a Ski Town?
The property types that work best in a ski town are the tightest, most essential spaces: flex and industrial, medical office, mixed-use and lodging.
- Industrial and flex: A 12,000-square-foot flex warehouse in the Roaring Fork Valley leased to five tenants in one month, and Steamboat has 17 of 29 airport industrial lots under contract. More on industrial and warehouse property in Colorado.
- Medical office: The 41,260-square-foot Summit Medical Office Building was 94% occupied when it sold.
- Mixed-use: Mixed-use buildings spread risk when ground-floor tenants slow down in winter. See mixed-use property in Colorado mountain towns.
- Lodging: Hotels and short-term rentals can earn well but need active management and capital reserves. Read how to buy a hotel or motel in Colorado.
| Property type | Strength in a ski town | Main risk |
|---|---|---|
| Industrial and flex | Contractors and service firms need space year-round | Little land to expand on |
| Medical office | Demand from year-round residents and visitors | Narrow tenant pool |
| Downtown retail | Near-zero vacancy on prime streets | Sales follow the snow |
| Office | Owner-users and local firms | Softer demand, shift to coworking in Steamboat |
| Lodging | Highest income in a strong season | Weather, labor and tax changes |
Office is the weakest of the group in most resort towns. Steamboat’s Q1 2026 report describes standard office as softer than industrial, with more space shifting to coworking. Glenwood Springs is the exception: Class A office there leases around $25 per square foot plus triple net, about $37 all-in.
Ski-Town Due Diligence Checklist
On top of the usual checks, test a ski-town property against weather, wildfire and the season.
- Inspect closely, because mountain weather wears buildings faster.
- Confirm the insurance coverage and its limits, and any wildfire mitigation in interface zones.
- Underwrite the income for a bad snow year.
- Check lodging and vacancy tax proposals.
- Ask how the tenants house their staff.
The standard steps are in the full Colorado buying process.
Add four resort-specific items to that list:
- Licenses that run with the units: short-term rental licenses, liquor licenses and any lodge exemption.
- Deed restrictions: employee or affordable housing covenants on any residential part of the building.
- Seasonal rent rolls: at least three years of monthly figures, so one winter does not distort the picture.
- Ballot calendar: lodging, vacancy and sales tax questions on the next November ballot.
Mistakes to Avoid When Buying in a Resort Town
The most common mistakes come from pricing a ski-town building like a Front Range one.
- Reading one quarter as a trend. Three sales can make volume jump or fall by half.
- Using peak-season income for the whole year. Ask for monthly figures, not an annual total.
- Assuming a short-term rental license transfers. Caps and transfer rules vary by town.
- Ignoring the tenant’s labor problem. A tenant that cannot staff its business cannot pay rent.
- Waiting for a listing. Off-market deals are common, so tell a local broker what you want.
Frequently Asked Questions
Are cap rates lower in Colorado ski towns?
Yes, generally. RMCRE’s 2026 reports show cap rates of 4.5% to 6.0% in Aspen, about 4% to 6% in the Roaring Fork Valley and 5.5% to 6% in Steamboat Springs. Scarce land and few forced sellers keep yields low.
What taxes apply to a hotel room or short-term rental in a Colorado ski town?
The state’s 2.90% sales tax applies, plus local sales taxes and any county, marketing district or city lodging tax. Aspen, for example, adds a 2% lodging tax and a 5% or 10% short-term rental tax. Stays of 30 days or more by a permanent resident are exempt from the state tax.
Can I run short-term rentals in a mixed-use building I buy?
It depends on the town and the unit’s license. Steamboat Springs bars new short-term rentals in Zone C, and Breckenridge caps nonexempt licenses at 2,200. Confirm each unit’s license status with the town before you close.
Which ski-town property types hold up best in a bad snow year?
Industrial, flex and medical office space usually hold up best, because contractors, service firms and patients do not depend on visitors. Retail and lodging feel a weak season first, as Telluride’s January 2026 slowdown showed.
Do I need a local broker to buy in a resort town?
You are not required to use one, but many ski-town deals happen off market. In 2026, much of the Roaring Fork Valley’s commercial activity traded without a public listing. A local broker also knows each town’s licensing and tax rules.
Local Brokers in Colorado’s Resort Towns
Each RMCRE market has a single broker who lives and works there. RMCRE publishes market reports for resort markets including Aspen, Breckenridge and Summit County, Steamboat Springs, Telluride and the Roaring Fork Valley. A listing in one market is carried by the whole network. To start in one town, see commercial property in Steamboat Springs.
Rocky Mountain Commercial Real Estate has connected buyers and sellers across Colorado mountain towns since 2010. Read the latest figures in RMCRE’s Telluride Q1 2026 market update, or talk to the partner broker for Breckenridge commercial property.
