Relief at Steamboat Resort
Construction crews at Steamboat Resort can breathe a short-lived sigh of relief. Ski season 2021/22 is underway and the first phase of a multi-million dollar, multi-year master plan of expansion and renovation saw a successful start. When Alterra Mountain Company, the resort owners, pledged to invest $135M over three years, it caused a ripple effect in real estate for the area.
The company’s commitment to invest in Steamboat Springs is a natural boost to the local economy. Investors are looking for opportunities to bet on the potential steady income from real estate investments.
What the Market Looks Like Currently
Currently, there are 39 commercial properties listed for sale, plus 17 properties available for lease. Preliminary data from the Routt County Assessor’s Office shows 105 transactions involving improved commercial properties in 2021, totaling $150M. There were 44 commercial vacant land and development parcel transactions this year and the respective land sales totaled almost $40M.
The Times Are Changing
Across the nation, the work from home phenomenon and need for economic changes altered the face of business.
“Our diversification strategy is to target our support to startups in the outdoor gear and lifestyle brands and space, value-added agriculture and natural foods, creative industries and location neutral or remote workers,” says John Bristol, Director of Economic Development for the Steamboat Springs Chamber.
Local Labor Force Facing Housing Issues
Earlier this year, Travis Campbell, a Steamboat local and President of Emerging Brands for VF Corp., purchased their Eagle Creek label with the intent to base the business in Routt County. “I joke that at some level I have basically bought myself a job so we could stay here,” Campbell said. Campbell is one of several entrepreneurs who intend to foster homegrown talent in the valley.
The greatest challenge to the local labor force is housing. As of 2020, the area’s population grew by 7.6% since 2015, increasing by 1,857. The level of growth is expected to increase by 9.4% by 2025. Soaring real estate prices and the switch by property investors from long-term rentals to nightly rentals has limited the pool of lower income housing. Private sector firms are stepping in with solutions to alleviate the subsequent labor shortage, while the City of Steamboat looks at long-term measures.
Reliant Group and K2 Developers purchased the Steamboat Hotel and the former Steamboat Mountain Lodge to convert them into housing for Steamboat Resort employees. Ski Town Commercial plans to convert the Hampton Inn & Suites and the Fairfield Inn & Suites by Marriott into affordable housing units as well.
Construction Industry Going Strong
The construction industry has gone from strength to strength. Building use tax collections, net of deposits and reconciliations, are up 1,044% for October 2021 compared to October 2020. The year to date income is $3.8M, a 173% increase on last year by the end of October 2021.
Sales tax has increased by 22% year to date to just over $27M. As the end of the year approaches, the city is ahead of financial projections, an indicator that Steamboat continues to climb on its positive trajectory.