Colorado Springs, often referred to as “Olympic City USA,” has long been celebrated for its breathtaking natural scenery and its role as a hub for the United States military. However, for the astute investor, entrepreneur, or financial strategist, the question of “what to do” in Colorado Springs extends far beyond its hiking trails and mountain vistas. In the current economic climate, Colorado Springs represents one of the most compelling secondary markets in the United States.
With a robust population growth rate, a diversifying economy that balances defense with high-tech innovation, and a real estate market that continues to show resilience, the city offers a wealth of financial opportunities. This guide explores the strategic actions one should take to capitalize on the economic momentum of the Pikes Peak region, focusing on real estate, business development, and long-term wealth management.
The Macroeconomic Landscape: Navigating the Springs’ Economic Engine
Before deploying capital in any market, it is essential to understand the underlying drivers of growth. Colorado Springs is not merely a satellite of Denver; it is a distinct economic entity with a unique fiscal DNA.
The Stability of the Defense and Aerospace Sectors
What to do first in Colorado Springs is to understand its floor. The city’s economy is anchored by a massive military presence, including Fort Carson, Peterson Space Force Base, Schriever Space Force Base, and the United States Air Force Academy. For an investor, this provides a “recession-resistant” foundation. The constant influx of personnel and federal spending ensures a steady demand for services, housing, and infrastructure. Strategically, this means that the local economy has a higher degree of stability compared to markets purely reliant on volatile sectors like tourism or retail.
Emerging Tech and Cybersecurity Hubs
While defense is the backbone, the “smart money” is looking at the city’s burgeoning cybersecurity and aerospace technology sectors. Colorado Springs has successfully branded itself as a premier destination for tech firms seeking a lower cost of operation than Silicon Valley or even nearby Boulder. Organizations like the National Cybersecurity Center (NCC) have spurred a local ecosystem of startups and tech-adjacent businesses. Investors should look toward the “North End” and the Interquest corridor, where commercial development is increasingly catering to high-earning tech professionals.
Demographic Shifts and Workforce Talent
The city’s population has surged, fueled by an influx of young professionals and families seeking a balance between career growth and quality of life. For a business owner, this means access to a highly educated workforce. Colorado Springs consistently ranks high for its concentration of engineers and technical specialists per capita. From a financial perspective, “what to do” involves identifying businesses that can leverage this specialized talent pool, particularly in software development and specialized manufacturing.
Strategic Real Estate Investment: Capitalizing on the Front Range Boom
Real estate remains the cornerstone of wealth generation in Colorado Springs. As the Denver metropolitan area becomes increasingly unaffordable, Colorado Springs has absorbed much of the regional demand, leading to significant historical appreciation.
Residential Markets: Beyond Single-Family Homes
For those looking to enter the residential market, the strategy has shifted from simple “fix-and-flips” to long-term holds and multi-family units. The demand for rental properties remains high due to the transient nature of military assignments and the growth of the local university system (UCCS).
- The Multi-Family Play: Investing in duplexes or small apartment complexes in the downtown or southwest regions offers strong yield potential.
- Short-Term Rentals (STRs): While the city has implemented specific regulations regarding STRs, properties that meet the “owner-occupied” or “non-conforming” criteria can generate substantial cash flow given the city’s status as a year-round tourist destination.
Commercial Real Estate and the “New Downtown”
The revitalization of Downtown Colorado Springs is one of the most significant economic stories of the last decade. The “What to Do” for commercial investors involves looking at mixed-use developments. The Southwest Downtown Urban Renewal Area, anchored by the U.S. Olympic & Paralympic Museum and the Weidner Field stadium, has transformed the city’s core.
- Adaptive Reuse: Investors are finding success converting older industrial spaces near the city center into “creative office” spaces or boutique retail hubs.
- Medical Office Space: With an aging population and a growing healthcare sector (anchored by UCHealth and Centura), medical office buildings (MOBs) represent a low-vacancy, high-reliability investment vehicle.
Land Development and the Eastern Expansion
As the city reaches its geographic limits to the west against the mountains, the only way to grow is east. Areas like Falcon and Banning Lewis Ranch are seeing unprecedented residential construction. For institutional investors or those with significant capital, “what to do” involves land banking or participating in the development of essential infrastructure and commercial “nodes” that serve these new residential rooftops.
Entrepreneurship and Business Finance: Scaling in a High-Growth Market
Colorado Springs offers a fertile environment for building and scaling a business. The combination of a pro-business local government and a supportive community makes it an ideal location for middle-market companies.
Identifying Niche Market Gaps
One of the most effective ways to generate income in the Springs is to identify services that haven’t kept pace with the population growth. This includes high-end dining, specialized professional services (legal, accounting, wealth management), and child-care facilities. Analyzing the “gaps” in the local consumer market can lead to high-margin business opportunities.
Leveraging Local Incentives and Enterprise Zones
The city and state offer various tax credits and incentives designed to spur job creation and investment.
- Enterprise Zone Tax Credits: Much of Colorado Springs falls under an Enterprise Zone, allowing businesses to claim credits for equipment purchases, job training, and even certain types of research and development.
- The Pikes Peak SBDC: For those starting a business, the Small Business Development Center provides resources that are essential for navigating the local regulatory environment, which is a critical step in ensuring the financial viability of a new venture.
The Outdoor Industry and “Lifestyle” Businesses
Given its proximity to the Rockies, Colorado Springs is a natural home for the outdoor industry. From gear manufacturing to specialized fitness and wellness centers, businesses that cater to the active lifestyle of the residents are thriving. These businesses often benefit from “brand synergy”—being based in a city known for the outdoors lends immediate credibility to an outdoor-focused brand.
Personal Finance and Wealth Management in the Rockies
Finally, for the individual resident or newcomer, “what to do” in Colorado Springs involves optimizing one’s personal balance sheet to reflect the local economic reality.
Navigating Colorado’s Tax Environment
Colorado is known for its “Flat Tax” on income, but the real complexity lies in the Taxpayer’s Bill of Rights (TABOR). Understanding how TABOR refunds and local property tax assessments work is vital for long-term financial planning. Property taxes in Colorado are relatively low compared to the national average, which enhances the “carrying capacity” for homeowners and investors alike.
Retirement Planning and the “Silver Tsunami”
Colorado Springs has become a premier destination for retirees, particularly former military officers and professionals from higher-cost coastal states. This demographic shift creates a demand for sophisticated financial planning services. If you are a resident, “what to do” involves ensuring your portfolio is positioned to withstand the inflationary pressures of a growing city while taking advantage of the state’s tax-friendly policies for retirees.
Strategic Philanthropy and Social Impact
Wealth management in Colorado Springs often includes a component of community reinvestment. The city has a strong tradition of philanthropy, with numerous foundations focusing on veterans’ affairs, education, and land conservation. From a financial perspective, structured giving (such as Donor-Advised Funds) can provide significant tax benefits while allowing residents to have a direct impact on the city’s future trajectory.
Conclusion
When asking “what to do in Colorado Springs,” the answer depends on your financial horizon. For the conservative investor, the defense-backed stability of the residential rental market is an obvious choice. For the aggressive entrepreneur, the tech-heavy “North End” and the revitalized “Southwest Downtown” offer high-growth potential.
Colorado Springs is a city in transition—moving from a quiet military town to a sophisticated, diverse, and economically robust metropolitan area. By understanding the macroeconomic drivers, identifying real estate opportunities, and leveraging the local business ecosystem, one can do more than just enjoy the views; one can build a lasting financial legacy in the heart of the Front Range.
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