When one asks, “What is there to do in Colorado Springs?” the typical answer involves the red rocks of Garden of the Gods or the daunting incline of Pikes Peak. However, for the astute investor, the entrepreneur, and the financial strategist, the answer is significantly more lucrative. “What to do” in Colorado Springs is to capitalize on one of the most resilient and fast-growing economies in the United States.
Over the past decade, Colorado Springs has evolved from a sleepy military outpost and seasonal tourist destination into a sophisticated economic engine. Known as “Olympic City USA,” the region offers a unique intersection of federal stability, a booming tech-led real estate market, and a business-friendly environment that rivals major coastal hubs. This guide explores the financial landscape of Colorado Springs, identifying where the capital is flowing and how to position oneself within its burgeoning economy.
The Macro-Economic Foundations of the Pikes Peak Region
To understand the financial potential of Colorado Springs, one must first analyze the pillars of its economy. Unlike many mid-sized American cities that rely on a single industry, the Springs boasts a diversified economic base that provides a buffer against national market volatility.
Military and Defense Expenditure as a Stable Anchor
The bedrock of the Colorado Springs economy is its massive military presence. The city is home to five major military installations: Fort Carson, Peterson Space Force Base, Schriever Space Force Base, Cheyenne Mountain Space Force Station, and the United States Air Force Academy. This federal footprint injects billions of dollars into the local economy annually.
For the investor, this creates a “recession-proof” environment. Military spending is largely independent of consumer confidence or retail cycles. The presence of the U.S. Space Command and the high concentration of defense contractors—including heavyweights like Northrop Grumman, Lockheed Martin, and Raytheon—creates a consistent demand for high-skilled labor and professional services. This stability is the primary reason why Colorado Springs often outperforms the national average during economic downturns.
The Rise of the Cybersecurity and Aerospace Corridors
Beyond active-duty operations, Colorado Springs has become a global hub for the aerospace and cybersecurity sectors. The city currently ranks among the top five nationally for its concentration of cybersecurity professionals. This is not incidental; it is the result of strategic public-private partnerships and the presence of the National Cybersecurity Center.
From a venture capital perspective, this “Silicon Mountain” effect is significant. There is a high volume of federal research and development (R&D) money flowing into the region, which often trickles down to local startups and tech service providers. For those looking to invest in tech-adjacent equities or B2B service firms, the aerospace and defense-related tech sector in Colorado Springs offers a high-ceiling opportunity with a floor supported by government contracts.
Real Estate Dynamics: Residential and Commercial Opportunities
Perhaps the most visible way to “do business” in Colorado Springs is through the real estate market. The city has consistently ranked as one of the hottest housing markets in the country, driven by a combination of net migration and a shortage of inventory.
The Residential Surge: Analyzing Net Migration and Housing ROI
The “Quality of Life” factor has driven a massive influx of remote workers and professionals from more expensive coastal cities and even from neighboring Denver. As Denver’s cost of living skyrocketed, Colorado Springs became the logical choice for those seeking the Colorado lifestyle at a more attainable price point.
For residential real estate investors, the play here is long-term appreciation and a strong rental market. The vacancy rate remains historically low, bolstered by the constant rotation of military families and a growing population of young professionals. While the days of hyper-low interest rates have passed, the intrinsic demand in Colorado Springs continues to drive equity growth. Smart money is currently looking toward “North Colorado Springs” and the “Falcon” area, where new developments are meeting the demand for suburban luxury and high-end amenities.
Commercial Real Estate: Industrial Flex Space and the Retail Revitalization
The commercial sector offers a different, yet equally compelling, narrative. As the population grows, the infrastructure must follow. We are seeing a significant uptick in the demand for “flex space”—commercial buildings that can serve as office, warehouse, or light manufacturing hubs. These are particularly popular among the defense contractors who need secure facilities close to the military bases.
Furthermore, the revitalization of Downtown Colorado Springs has shifted the retail investment landscape. The city has invested heavily in urban renewal, resulting in new multi-family luxury apartments and high-end dining districts. This “urbanization” of the downtown core provides a prime opportunity for commercial developers and retail brand owners to capture the discretionary income of the city’s growing affluent demographic.
Entrepreneurship and the Startup Ecosystem
For those asking what there is to “do” in terms of active income, the entrepreneurial landscape in Colorado Springs is ripe for disruption. The city is increasingly recognized as a fertile ground for small businesses and startups.
Incentives and Grants for New Business Ventures
The municipal government and the Colorado Springs Chamber & EDC (Economic Development Corporation) offer a variety of incentives to lure businesses to the region. These range from sales and use tax exemptions on manufacturing equipment to job growth incentive tax credits. For a business owner, these incentives can significantly lower the barrier to entry and improve the initial burn rate.
Moreover, the presence of institutions like the University of Colorado Colorado Springs (UCCS) provides a pipeline of talent. The university’s focus on engineering, business, and cybersecurity ensures that local startups have access to a workforce that is both highly educated and relatively affordable compared to the Silicon Valley or Austin markets.
Low Cost of Doing Business vs. Talent Retention
One of the primary financial advantages of operating in Colorado Springs is the overhead. Commercial lease rates, while rising, are still a fraction of what one would pay in Tier 1 cities. This allows entrepreneurs to allocate more capital toward R&D and marketing rather than just keeping the lights on.
The challenge, and thus the opportunity, lies in talent retention. As the city matures, there is a growing need for “lifestyle businesses”—upscale fitness centers, boutique co-working spaces, and high-quality childcare. Entrepreneurs who can provide the amenities that high-earning tech and defense professionals demand will find a captive and loyal market.
Diversifying Income Through the Tourism and Hospitality Sector
While this guide focuses on “Money” rather than “Leisure,” it is impossible to ignore the financial impact of the 23 million visitors who travel to the region annually. Tourism is not just about sight-seeing; it is a multi-billion dollar industry that offers numerous avenues for wealth generation.
Short-Term Rental Regulations and Profitability
The short-term rental (STR) market in Colorado Springs has undergone significant regulatory changes in recent years. For the individual investor, “what to do” involves navigating these zoning laws to find profitable opportunities. Currently, the city distinguishes between owner-occupied and non-owner-occupied permits.
Investing in properties that qualify for STR permits in high-demand areas near the Broadmoor or the Westside can yield high cash-on-cash returns, especially during the peak summer months. However, the move toward stricter regulation means that professional management and high-quality branding are now essential to maintain profitability in a more competitive market.
The Impact of “Olympic City USA” on Local Commercial Value
The United States Olympic & Paralympic Committee is headquartered in Colorado Springs, along with dozens of National Governing Bodies. This branding has a tangible financial effect. It attracts high-profile sporting events, international conferences, and state-of-the-art training facilities.
This “Olympic” brand raises the international profile of the city, which in turn increases the value of hospitality assets. Investors are increasingly looking at mid-tier hotel acquisitions and renovations to cater to the steady stream of sports-related travel. The opening of the U.S. Olympic & Paralympic Museum has further anchored the southwest downtown area as a high-value zone for future hospitality development.
Long-Term Financial Outlook and Wealth Preservation
As we look toward the future, Colorado Springs represents a strategic location for wealth preservation and long-term capital growth. The city is not a “get rich quick” play; it is a fundamental-driven market.
Tax Advantages and Municipal Stability
Colorado’s flat income tax rate and relatively low property tax rates (compared to the national average) make it an attractive destination for high-net-worth individuals. In Colorado Springs specifically, the municipal government has shown a commitment to fiscal responsibility and infrastructure investment. The expansion of the Colorado Springs Airport—which has seen a surge in passenger traffic thanks to new carriers like Southwest—is a testament to the city’s forward-thinking economic policy.
Future-Proofing Investments Against Market Volatility
The key to “doing well” in Colorado Springs is understanding the synergy between its various sectors. When the tech market is volatile, the military presence provides a floor. When tourism dips in the winter, the steady growth of the aerospace and cybersecurity sectors keeps the local economy moving.
For the professional looking to diversify their portfolio, Colorado Springs offers a “Goldilocks” environment: it has more growth potential than established, stagnating markets, but more stability than speculative “boomtowns.” Whether through direct real estate investment, equity in local defense-tech firms, or launching a service-based business, the financial opportunities in Colorado Springs are as vast and varied as the mountain range that defines its horizon.
In conclusion, if you are asking what there is to do in Colorado Springs, the answer is clear: Invest. Build, scale, and capitalize on a city that is uniquely positioned at the forefront of the new American economy. The view from the top of Pikes Peak is excellent, but the view from a well-positioned investment portfolio in this region is even better.
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