PUBLIC POLICY
Colorado’s rising taxes could affect future investment, but the impact remains uncertain.
Two proposed projects remain worth watching. City Council delayed a vote on a data center until 2027 amid disagreement over the project; it has not been approved. In Monument, a proposed Buc-ee’s has also drawn opposition over traffic and disruption, but it appears likely to move forward.
HAPPENINGS
Sales tax is up across lodging and retail despite a sense that consumers have been spending cautiously. The recent allowance of recreational marijuana sales within city limits appears to be contributing to the increase.
Development continues near the Colorado Springs airport, where there is a push for an industrial park and surrounding hotels, though progress has been slower than hoped. Swire Coca-Cola is also putting in a large plant off Powers Boulevard.
COMMERCIAL REAL ESTATE
Commercial sales in Colorado Springs have been similar to last year. The first quarter was slow, while the second and third quarters were closer to last year’s pace. Transactions are happening, including some large deals that can skew total sales volume, though activity remains below levels seen a few years ago.
| ITEM | 2025 YTD | 2026 YTD | %DIFFERENCE |
| SALES TAX INDICATORS (Source – ColoradoSprings.gov, City of Colorado Springs, through Sept 2026) | |||
| All Sales Taxes | $21,172,801 | $23,093,100 | +9.07% |
| Retail Taxes | $20,552,209 | $22,233,889 | +8.18% |
| Restaurant Taxes | $3,115,563 | $3,151,643 | +1.16% |
| Lodging Taxes | $1,063,720 | $1,095,926 | +3.03% |
| Retail Marijuana Sales Tax | $265,958 | $358,581 | +34.83% |
| VACANCY RATE (Source – Variable; Office Sector, Class A/B, Colorado Springs, Q3) | 12.88% | 13.65% | +5.98% |
| EL PASO COUNTY RESIDENTIAL REAL ESTATE (Source – Colorado Association of Realtors, El Paso County, through Sept 2026) | |||
| Residential Total Sales | $4,491,117,810 | $4,462,934,906 | -0.63% |
| Residential Average Price | $570,663 | $566,578 | -0.72% |
| Residential Days on Market | 47 | 50 | +6.38% |
| Residential Listed for Sale | 3,532 | 3,619 | +2.46% |
CAP RATES
Commercial property cap rates by property type and class, as of November 5, 2026. Source: Apartment Loan Store.
| PROPERTY TYPE | CLASS A | CLASS B | CLASS C |
| Multifamily Metro Mid & High Rise | 4.70% | 5.10% | 5.64% |
| Multifamily Suburban | 4.75% | 5.18% | 5.65% |
| Retail Metro (CBD) | 6.40% | 6.60% | 7.05% |
| Retail Suburban | 6.60% | 6.85% | 7.25% |
| Big Box Stores | — | 7.60% | 7.80% |
| Office Metro | 6.20% | 7.00% | 7.85% |
| Office Suburban | 7.60% | 7.85% | 7.50% |
| All Self-Storage | 5.60% | 6.00% | 6.60% |
| All Industrial | 5.25% | 6.20% | 7.50% |
| Hotel Metro (Luxury) (CBD) | 5.65% | 6.20% | 7.50% |
| Hotel Suburban | 7.75% | 8.00% | 8.50% |
| Hotel Economy | — | 8.50% | 8.80% |
