Doing Business

Opportunity Zones

Elevated Investment

A pioneering powerhouse and hometowns with high marks, the Colorado Springs region is flourishing.

Year-over-year increases in high-quality jobs
Expanding and new primary employers
National recognition and awareness
New economic development competitiveness initiatives
Venture capital and entrepreneurial growth
Amplified talent development strategies

Driving this boom are inventive trailblazers accelerating ideas and moving the region forward. People like you. We invite you to discover the financial and social benefits of investing in the Colorado Springs region’s Opportunity Zones.

Explore the prospectus, and when you’re ready, we look forward to discussing how working together we can diversify and enhance your portfolio in meaningful ways.

Colorado Springs Region Opportunity Zones Prospectus

Get In Touch

Tammy Fields Chief Economic Development Officer (719) 884-2836 tfields@cscedc.com

About Opportunity Zones

Opportunity Zones were enacted as part of the 2017 tax reform package and provide a federal tax incentive for individuals who invest in low-income urban and rural communities through favorable treatment of reinvested capital gains and forgiveness of tax on new capital gains.

Economic Benefits

Promoting economic vitality in areas that experienced uneven recovery over the past few years
Funding the development of workforce and affordable housing
Supporting new infrastructure to support population and economic growth
Investing in startup businesses that have potential for rapid increases in scale
Upgrading the capability of existing underutilized assets through capital improvement investments

Financial Benefits

Deferral: No up-front tax bill on the rolled-over capital gain and investors can defer their original tax bill until the earlier of a) December 31, 2026 or b) the sale of the Opportunity Zone investment
Reduction of tax on the rolled-over capital gain investment for long-term holding. A five-year holding increases the rolled-over capital gains basis by 10 percent, while a seven-year holding increases the rolled-over capital gain investment basis 5 percent, for a total of 15 percent.
Tax-free appreciation: If an Opportunity Fund investment is held for 10 years, the taxpayer pays no capital gains tax on appreciation.

There are nuances to Opportunity Zone investments. Review details from the Colorado Office of Economic Development and International Trade.

Colorado Springs Region Opportunity Zones

Downtown Colorado Springs

Headlines tell the story of a reinvigorated downtown Colorado Springs: construction cranes, new business, improved streetscapes and connections and much more.

Lured by a walkable environment, robust workforce concentration, one-of-a-kind shops, trail connectivity, state designation as a creative district and the largest concentration of locally owned restaurants in the region, developers and investors are rediscovering the value of Colorado Springs’ city center.

That’s amounted to nearly $1 billion in new investment into downtown in recent years, and the pipeline of new projects and investment continues to swell.

Leveraging a Smart City partnership with Panasonic, a new $1.8 billion mixed-use district will include residential, office, retail and civic amenities. The downtown residential market has taken off, with 600 units recently completed or in the near-term pipeline.

Key sectors: Retail, multifamily, IT and cybersecurity

North Nevada Corridor

A major city gateway, the North Nevada Corridor offers a blend of campuses and centers, including culture, as well higher education with the University of Colorado Colorado Springs.

The corridor is transforming into a high-tech hub. The National Cybersecurity Center is headquartered in a nearly $8 million refurbished facility that also houses Exponential Impact, a non-profit organization focused on entrepreneurship and emerging technologies. Nearby, the University of Colorado Colorado Springs and Cisco Systems Inc. are working together to develop a cybersecurity workforce development center that will offer training curriculum and internship programs, and identify research opportunities.

Also at the campus, one of four projects partially funded through Colorado’s Regional Tourism Act – the $61.4 million William J. Hybl Sports Medicine and Performance Center – will open in 2020.

Key sectors: IT and cybersecurity, manufacturing, health and medical technologies

Colorado Springs Airport

The Colorado Springs Airport, located just minutes from downtown Colorado Springs, offers a vast array of commercial and general aviation services.

Growth and development at the airport have been spurred by new flights, uptick in passengers (more than 1.6 million in 2017) and major growth of private business. The airport sits on 7,200 acres and boasts a 13,501-foot runway supporting general, commercial and military aviation.

The airport is home to the Peak Innovation Park, a 900-acre site of choice for regional and national companies desiring office, flex, warehouse/distribution r retail business space in a world-class setting. The park offers customized land sites from one acre and build-to-suit, sale or lease availability starting at 10,000 square feet.

Key sectors: Manufacturing, aerospace and defense, warehouse/distribution and hospitality

Southeast Colorado Springs

Rich with diversity and culture, southeast Colorado Springs is a multi-generational community offering a diverse workforce with ideal proximity to both downtown Colorado Springs and the Colorado Springs Airport.

With competitive rates for office and retail space, along with numerous opportunities for infill projects, creative mixed use redevelopment and affordable housing development, there is significant potential for private investment to drive economic vibrancy for the area.

Within the next three to four years, the area is expected to realize more than $50 million in community pro ramming and infrastructure improvements.

Key sectors: Retail, housing development

City of Fountain

A gateway to the region, Fountain offers access for growing businesses with urban amenities and close proximity to Colorado Springs, all while preserving its friendly small town character. Investment projects in the pipeline include new commercial and residential development, as well as affordable housing. A rebirth of the Olde Town has revitalized the city’s cultural roots and new business.

Key sectors: Transportation/logistics, retail, hospitality

Cimarron Hills

Though embedded within Colorado Springs city limits, Cimarron Hills is an unincorporated part of El Paso County. Residents (about 15,000) and businesses benefit from competitively priced real estate in close proximity to Powers Boulevard, a major thoroughfare and state highway that’s home to retail, hospitality and entertainment centers, as well as the Colorado Springs Airport and two U.S. Air Force bases.

Key sectors: Manufacturing and industrial, construction, retail

Real Estate Outlook

2019 looks to be another solid year for the Colorado Springs region in commercial and residential real estate, according to the Quantum Commercial Group, Inc.

The Colorado Springs region is positioned to see continued increased absorption in all commercial real estate sectors.

The downtown is picking up steam with investments for new apartments, hotels and public-private projects. The Colorado Springs Airport area is also waking up to new business opportunities.

Office

In 2018, the Colorado Springs area office market had a strong year and is expected to continue to absorb vacant space in 2019, though at a more moderate pace. Office absorption at the end of 2018 was just shy of 300,000 square feet and tied with 2015 for the strongest annual absorption Colorado Springs has seen since 2013 (when it was near 450,000 square feet). The strong absorption can be credited to the robust job growth the region saw in 2018.

Industrial

The Colorado Springs region’s industrial market has been tracking on a steady positive pace over the past few years, and although it has been gradual, it has seen substantial improvement over time. The vacancy rate decreased in 2018 to just under 7 percent, which is the lowest recorded since 2007. The rate is spurring new construction, with nearly 200,000 square feet completed in 2018. A similar number of projects are expected to be delivered in 2019, depending on construction costs.

Retail

The Colorado Springs region’s industrial market has been tracking on a steady positive pace over the past few years, and although it has been gradual, it has
seen substantial improvement over time. The vacancy rate decreased in 2018 to just under 7 percent, which is the lowest recorded since 2007. The rate is spurring new construction, with nearly 200,000 square feet completed in 2018. A similar number of projects are expected to be delivered in 2019, depending on construction costs.

Investment

Strong investment activity is forecasted for the Colorado Springs region in 2019 as investors search for higher returns in secondary markets. The area continues to attract national interest due to its significant growth, strong market fundamentals and potential for higher returns compared to Denver. Multifamily projects are also drawing investors. Buyers are acquiring larger, institutional opportunities, as well as value-add projects, with multiple buyers competing for both types of assets.

Property Search

Our GIS tool makes it easy to find available sites and buildings in the region.

This map provides a high-level look at the region and Opportunity Zones. To explore further and look at available properties, use our Colorado Springs region property search. Select Layers then Federal Opportunity Zones.