WESTERN SNAPSHOT, DECEMBER 2004

Colorado Springs Retail Market

Spittler

Residential growth in Colorado Springs is empowering retail development, especially along the Powers Boulevard corridor. “The growth in the city is primarily north and east, and the new projects on the drawing board are primarily along Powers Boulevard as it extends to the north to connect with Interstate 25,” says Jim Spittler, founding partner at NAI Highland Commercial Group in Colorado Springs.

Norwood Development Group’s lifestyle offering First & Main Town Center, which opened 5 years ago, continues to add significant retail tenants to the corridor, says Spittler. At Interquest Parkway, the interim Powers Boulevard extension to I-25, Cinemark Theatres will build a 14-screen theater on a 105-acre site. Falcon, Colorado, approximately 10 miles northeast of Colorado Springs, has experienced significant retail growth as a result of the housing boom in the area.

Crossings at Briargate and Cordera, both in the northeast quadrant of Colorado Springs, feature approximately 115 acres of land under contract or in the planning stages for major retail development. Eight miles to the north along I-25, the city of Monument is experiencing some retail growth with a likely Wal-Mart store in addition to The Home Depot that recently opened there. An infill site near the intersection of N. Nevada Avenue and I-25 will provide relocation opportunities to various retailers. Last year, Poag & McEwen opened The Shops at Briargate, a 225,000-square-foot lifestyle center.

The nearly complete Broadmoor Towne Center, formerly known as Southgate, is a 635,000-square-foot redevelopment of an old Sears center plus additional land by Kratt Commercial Properties. It features retailers The Home Depot, Gordmans, Borders Books & Music, Ross, PetsMart, Sears and Office Depot.

Besides Kratt Commercial, Norwood Development and Sittema-Bullock Realty Partners are active retail developers in Colorado Springs. Some new retailers to the market are Whole Foods Market, Gordmans, DSW and Shoe Carnival as well as restaurants Pei Wei, Elephant Grill, Qdoba Mexican Grill and Johnny Carino’s Country Italian.

Colorado Springs’ retail vacancy through third quarter was 7.3 percent. Around 714,895 square feet will be added to the market’s more than 15.6 million square feet of existing space.

Spittler says that Colorado Springs’ eclipsing 500,000 in population approximately 2 years ago has put the city more on the radar screen for retailers and consequently for developers. The defense and other high-tech industries in the area provide a solid base for that growth. Speaking of growth, Colorado Springs’ total retail sales have shot up from $4 billion in 1990 to $10.4 billion at year-end 2003.

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