Housing, Energy, Data Centers On Colorado Legislature's 2026 Docket
Heading into the 2026 Colorado legislative session, commercial real estate organizations are bracing for a tight budget year and conversations about zoning, energy regulations, labor rights and data centers.
A projected $850M deficit looms over this session, which starts Jan. 14, but legislators are still prepping for a flurry of bills related to housing, energy and labor.
Gov. Jared Polis identified increasing housing affordability and easing permitting for energy projects as two of his top three priorities for his last year as governor at a session preview hosted by the Colorado Sun on Jan. 8.
“One of the reasons we can’t have nice things is we don’t let them be built,” Polis said.
Polis specifically called out the proposed Home Act, which would allow schools, housing authorities and some nonprofits to build housing on their properties regardless of local zoning. The bill is an updated version of legislation proposed last year that would have allowed religious institutions to build housing on their properties.
Kathie Barstnar, executive director for the Colorado chapter of NAIOP, said the commercial real estate development organization supports legislation that would allow more multifamily housing to be built.
“If any of that land that's available could be developed for multifamily housing or for job creation, I think we should encourage that kind of outside-the-box thinking,” she said.
As for energy policy, Barstnar said she thinks it’s unfortunate that the discussion of clean energy legislation “is giving very little regard to implementation,” adding that NAIOP will monitor conversations and push back against regulations that drive up cost.
A longtime priority for Polis has been to power the state with 100% clean energy by 2040, but energy companies have opposed past proposals, according to Colorado Public Radio.
Also closely watching the energy conversation is the Denver Metro Commercial Association of Realtors. DMCAR executive Heather Howerton said the organization plans to support a proposed ballot measure that aims to establish a consumer right to energy choice and prohibit bans on products based on their energy source.
“We’re on the lookout for that because (energy costs) can reach millions per building and influence leasing decisions and investments on older and even newer assets,” Howerton said.
As part of the conversation on energy, Barstnar also expects at least two bills regarding data centers. She said a concern is the state will become even more unfriendly toward data center projects by enacting regulations related to energy and water.
“Based on one draft bill we’ve seen, they basically want to say Colorado is closed to data centers,” she said.
Another big conversation expected this session is on the state’s Labor Peace Act, which outlines the union formation process. Last year, Polis vetoed a bill that would have changed the Labor Peace Act to make it significantly easier to unionize, but a similar bill is expected this year.
Barstnar said NAIOP would likely oppose any legislation that echoes last year’s bill, while Polis said at the preview he would veto any labor bill that didn’t have the support of businesses.
Other potentially contentious legislation includes expanding tenant protections and changing the construction retainage laws, both of which NAIOP is monitoring. Howerton added that DMCAR is watching out for bills on compliance costs and building performance standards.
Overall, Barstnar and Howerton said their goal for this session is to prevent new bills that will increase costs and barriers to building, while advocating for bills that support growth.
“It seems like, oftentimes, when there are budget deficits, commercial real estate seems to be an easy target to help fill some of that, but I would hope that the legislature would be wise enough to understand the extreme distress that the market is currently in,” Barstnar said.
