Colorado Springs Makes Big Bet On Its North End

After decades of quiet growth, Colorado Springs commercial real estate players and economic development leaders are pushing the city’s north end into the spotlight — and placing some big bets to help it get there.

Anchored by the $250M Polaris Pointe development at Interstate 25 and North Gate Boulevard, which includes a 375-room hotel, more than 40K SF of meeting space and several food and beverage outlets, the area is rapidly becoming the city’s most ambitious corridor for mixed-use growth. 

It is also starting to pull weight as a tourism and defense destination, attracting visitors from across the state and high-paying tenants from the U.S. military’s most sensitive branches. 

Commercial real estate leaders convened at Bisnow’s June 24 State of Colorado Springs event, held at the DoubleTree Colorado Springs. They touted the long-term potential of the north end and its appeal to leisure travelers and Department of Defense contractors seeking secure meeting spaces.

“One thing I'd like everyone not to forget is that you know over the last two or three years we've added some pretty stellar industrial pillars to our economy,” said Jessie Kimber, director of economic development for the city of Colorado Springs. 

Kimber said the city’s designation as a quantum hub is already making it a destination for companies in that field.

“We’ve seen an uptick in demand for SCIF space,” Kimber said, referring to secure meeting rooms known as sensitive compartmented information facilities. 

That is driven by growth in the Space Force, Delta Force missions and the proposed “Golden Dome” under North American Aerospace Defense Command and U.S. Northern Command, she said.

“This is the field of dreams,” Kimber said.

That demand, in a region long dominated by military and defense, is helping insulate the region from office sector distress seen elsewhere, panelists said. While many downtowns struggle with lagging absorption, brokers say defense contractors continue to sign long-term leases and seek high-security build-outs.

The Colorado Springs office market vacancy rate fell from 15.1% to 13.5% between the third and fourth quarters of 2024, according to a Cushman & Wakefield report. Meanwhile, Denver’s total vacancy was 26.8%, according to CBRE’s latest data.

That relative strength is also feeding demand for other asset types — especially in the north end, where commercial momentum is translating into new hospitality, retail and entertainment development.

Hotel Polaris, which CoralTree Hospitality opened in late 2023, is a big part of the city’s strategy to elevate the north end.

“We haven’t had new office development in Downtown Colorado Springs since 2000,” CoralTree Executive Vice President Mike Everett said.

But there is “quite a bifurcation” between older and newer properties, Everett added, with newer and more expensive properties seeing lower vacancy rates — a trend also seen in Denver and nationwide.

With Polaris, CoralTree is betting on the idea that Colorado Springs can compete with Boulder and Fort Collins for lifestyle-driven talent and capital. 

The new hotel also gives the growing concert scene a major hospitality hub.

With the Ford Amphitheater now anchoring the north end’s entertainment district, developers say the area is drawing new audiences — and keeping them overnight. The 8,000-person venue, developed by Venu and opened in 2024, is less than 2 miles from the Hotel Polaris. 

Everett said that proximity is reshaping regional travel patterns, making it easier for people to catch a show and stay close by. 

Venu President Will Hodgson said ZIP code data shows a growing share of ticket buyers is coming from Castle Rock and Denver, a noticeable shift that underscores the north end’s growing appeal as a regional destination.

The north end’s accessibility from the south Denver suburbs — combined with its views, new entertainment offerings and public-private partnerships — has put it on developers’ radar, Hodgson said.

With a half-hour commute between Everett’s office on the south side of the Denver Tech Center and Polaris, “the Springs continues to look better, better and better,” he said, especially compared to “the complexities” of Denver.

The area is also seeing interest from future industrial users, particularly those in aerospace and quantum computing that require proximity to clean rooms or rail infrastructure. 

In June, the city annexed 3,000 acres to develop the Southern Colorado Rail Park near Fort Carson and the Ray Nixon Power Plant, which could lay the groundwork for decades of job creation and sector diversification.

“That was an incredibly foresightful decision,” La Plata Communities CEO Douglas Quimby said. “We'll provide Colorado Springs with the opportunity to compete in sections that it hasn't necessarily been in before.”

Still, leaders stressed that the full build-out of the north end will require patience, coordination and community engagement — particularly as housing constraints, rising rents and anti-growth sentiment begin to impact development timelines elsewhere in the city.

“Housing is such a critical enabler to everything we do,” Kimber said, adding that without it, the region risks losing key talent.