Commercial real estate boom explodes in downtown Steamboat

Recent commercial property sales along Lincoln Avenue have been strong, setting record prices per square foot. (Photo by John F. Russell)

The Steamboat Springs residential market exploded in the months after the pandemic began, and now investors are bringing that same interest to Main Street.

“I think almost anything is up for grabs in Steamboat,” said Cindy Hayek, who recently moved her building at 822 Lincoln Ave. where her store, Gigi’s Closet, has been for five years. “The real estate market has certainly made me change my concept. You just have to be flexible – that’s part of being an entrepreneur. “

Hayek said a friend of hers, who is a realtor in Steamboat Springs, came to her in January with an offer and told her there was no commercial inventory in downtown Steamboat. The building wasn’t on the market, but Hayek eventually accepted the offer and moved inventory from Gigi’s across the street to Celebrations at 831 Lincoln Ave., another building Hayek owns. Hayek said the $ 1.22 million sale was one of four transactions she has made since the pandemic began.

Her current plan is to develop a “mom and me” concept for Gigi in the new room, but she said she has no plans to open the room until she has a clearer idea of ​​how the COVID-19 will be – Restrictions will look like this this summer.

“I had to rethink my entire concept of business.” Said Hayek.

Routt County’s Assessor Gary Peterson said there have been 13 transactions of 14 properties on Lincoln Avenue as of May 2020, including homes, condos, restaurants, and entire buildings. Those sales were $ 19.2 million.

Colorado Group Reality owner and broker Greg Breslau points to four significant sales in downtown Steamboat in the past 180 days.

“The downtown market has really warmed up,” said Wroclaw. “Historically, the commercial real estate market has always lagged behind the residential real estate market. So we know how crazy the residential sites are and it took a while for the commercial market to recover from COVID and I think a lot of tenants and owners were very careful and wanted to see how everything would play out.

“Well, I think there is obviously light at the end of the tunnel and we see a lot of activity,” added Wroclaw.

These properties include 822 Lincoln Ave., where Gigi’s was located; the McGill Law Building at 1107 Lincoln Ave .; the building at 1125 Lincoln Ave. where Threads is currently located; and the building at 929 Lincoln where Sew Steamboat did business for more than a decade. All five were listed at more than $ 1 million.

“It is all groups that have creative new concepts that go beyond the box,” said Breslau. “They probably won’t be office buildings.” People get creative and see how things change in Steamboat. “

Cam Boyd, a broker at Steamboat Sotheby’s International Realty, said he saw demand for commercial routes across Lincoln Avenue. He sees a lot of sales in industrial areas, like along Elk River Road to the west of the city.

“The commercial and industrial sectors are very hot right now,” said Boyd. “All you have to do is look at all of the tangled live work stuff and the prices that stuff costs. When it comes to real estate, there is demand for it. It’s not really just one sector or the other. It’s everything from condominiums to commercial and industrial. “

Commercial Property Group’s Bart Kounovsky has seen many real estate spikes during his time as a realtor at Steamboat.

“Each increase in real estate in Steamboat Springs has been unique over the years,” said Kounovsky. “Once again, this is a unique increase just for the people who come into town and want to invest commercially.”

Kounovsky is not surprised by the demand in the city center and on the west steamer.

“We only see a shortage of developable land for businesses and buildings in this area because really no new land subdivisions come into play.”

Wroclaw said he wasn’t sure what the future commercial property market will bring to downtown Steamboat, but with buildings selling at record prices per square foot, some longtime owners may decide to test the market.

“I’ve been here for about six years. I sold Old Town Square last year … right before COVID. Who would have known what would happen, but all of these companies weathered the storm, ”said Wroclaw. “I find it exciting to see what’s happening downtown and I think the dynamic is changing, but it’s still where a lot of tenants and new businesses want to be.”

To reach John F. Russell call 970-871-4209, email [email protected], or follow him on Twitter @ Framp1966.