2026 appears like it’s going to be a fairly attention-grabbing yr. Is it a rinse and repeat of 25? Inflation is remaining sticky, rates of interest are excessive, whereas property taxes and insurance coverage payments have skyrocketed all through Colorado. There’s a ton of damaging information coming down the pipe, however that doesn’t imply that the sky is falling. 26 will convey alternatives in Colorado actual property. What property varieties and areas are my prime picks for Colorado in 2026 and what am I avoiding?
Earlier than stepping into my prime picks for residential and business actual property in Colorado, I wish to disclose that I’m not a realtor nor an funding advisor, I’m a personal actual property lender and I personally spend money on actual property and maintain and repair loans all through the state. Beneath are my opinions based mostly on my private experiences having survived by means of numerous actual property cycles.
Greatest Industrial actual property investments in Colorado
Though the media retains harping on the massive declines in values on business properties there are nonetheless values on the market. Three property varieties are my favourite in at the moment’s setting.
- Mild industrial underneath 5k ft. Bigger industrial properties are getting hammered as large tenants pull again on storage, manufacturing, and so on… The smaller properties are nonetheless performing effectively as there may be at all times a requirement for small industrial house with a drive in door. Numerous tenants like a plumber, granite, car, and so on.. need these areas. Regardless of what’s occurring within the general business sector there’ll sometimes nonetheless be demand within the smaller areas. Word massive buildings even have new inexperienced constructing necessities that you just want to pay attention to.
- Smaller workplace condos (not in massive buildings). Small companies nonetheless want and need an workplace, however they don’t essentially wish to be in an enormous workplace constructing. Floor stage workplace condos are nonetheless in enormous demand in suburban places. Identical to smaller industrial there may be at all times a requirement for these kind areas and there will not be many new ones being constructed.
- Multifamily: Class B smaller properties are nonetheless in demand as there’s a glut of sophistication A residences accessible and folks nonetheless want reasonably priced housing. Word, that you must watch out with class C properties with all of the new legal guidelines in CO on habitability, it’s now significantly dearer to function inexpensive properties.
- Out of doors storage: If you’ll find it, folks and companies at all times want a spot to retailer massive objects from boats, RVs, development tools, and so on…..
Greatest Residential actual property investments in Colorado
On the residential aspect, I like suburban places which are smaller properties. For instance a 2 bed room home could be very fascinating to hire for an inexpensive worth. I might keep away from bigger properties if the intent is a long run rental. 2 bedrooms is the candy spot in at the moment’s market.
Areas I like in Colorado to spend money on actual property
- Suburban: areas like Fortress Rock, Golden, and so on.. proceed to be in demand with good faculties and far decrease taxes than Denver county
- Mountain/ski cities: though costly, the mountain cities are nonetheless fascinating, my prime picks are Vail, Steamboat, Aspen, and Telluride
- Foothills: Areas like Boulder, Evergreen, and so on… are good bets as there may be very restricted means to extend capability within the space.
Areas I’m extra nervous about investing in Colorado Actual property
- Denver: The tax and rules of Denver county make it extraordinarily tough to speculate both in residential or business properties. It’s significantly dearer than the suburban places and subsequently the return is way much less. I’d be very hesitant in Denver County.
- A number of of the Western slope markets: I feel a number of of the Western slope markets like Grand Junction, Montrose, and Delta have gotten forward of themselves and salaries within the space don’t justify the costs. My guess is that you will notice a 10-15% pull again in a number of of the Western Slope Markets.
- Sure mountain markets: I feel markets like Silverthorne, Leadville, Pagosa Springs, have gotten effectively forward of themselves and are primed for a pull again much like among the Western slope markets.
- Excessive rise condos within the entrance vary: between insurance coverage points and large will increase HOA dues for elevated upkeep, it’s powerful to make a case for buying a rental besides at a particularly low stage, even then that you must be very cautious as an enormous particular evaluation might simply sink your funding. I might be particularly nervous on decrease priced condos as they don’t have the reserves for the large tasks like elevators, roofs, and so on.. and will probably be a downward spiral with costs. Word, though I’m highlighting the entrance vary, condos within the some mountain cities may even really feel the ache particularly with larger insurance coverage prices.
Abstract of Greatest locations to spend money on Colorado actual property 2026
Though there may be appreciable uncertainty available in the market with numerous draw back danger, there are nonetheless good actual property investments on the market. I just like the smaller business industrial areas together with smaller free standing workplace condos and sophistication B multifamily. Sometimes, even in a downturn these properties will proceed to carry out significantly better than the remainder of the market. On the residential aspect, I just like the suburban markets particularly the smaller properties with about 2 bedrooms as there may be appreciable demand at this worth level.
On the flip aspect, I’d suggest being extraordinarily cautious in Denver County and most of the Western slope markets together with rural markets. Bear in mind in each cycle there may be alternative, and I’m a believer in placing my cash the place my mouth is, and I’ve invested in properties within the final a number of months that match the factors above.
Further Studying/Sources:
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Glen Weinberg personally writes these weekly actual property blogs based mostly on his actual property expertise as a lender and property proprietor. He’s the proprietor of Fairview Industrial Lending. Glen has been printed as an professional in laborious cash lending, actual property valuation, financing, and numerous different actual property matters in Bloomberg, Businessweek ,the Colorado Actual Property Journal, Nationwide Affiliation of Realtors Journal, The Actual Deal actual property information, the CO Biz Journal, The Denver Put up, The Scotsman mortgage dealer information, Mortgage Skilled America and numerous different nationwide publications.
Glen resides in Colorado, lends in Colorado, owns property in Colorado, and companies loans in Colorado which offers a singular actual property potential of what’s really occurring on the bottom each in Denver and all through Colorado. My objective of this actual property weblog is to supply an trustworthy evaluation of what I see occurring in Colorado actual property and the way it will influence actual property homeowners, consumers, realtors, mortgage professionals, and so on…
Fairview is the acknowledged chief in Colorado Onerous Cash and Colorado personal lending specializing in residential funding properties and business properties each in Denver and all through the state. We’re the Colorado specialists having closed 1000’s of loans all through the Entrance vary, Western slope, resort communities, and all over the place in between. We additionally dwell, work, and play within the mountains all through Colorado and perceive the intricacies of every market.
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