2026 looks like it is going to be a quite interesting year. Is it a rinse and repeat of 25? Inflation is remaining sticky, interest rates are high, while property taxes and insurance bills have skyrocketed throughout Colorado. There is a ton of negative news coming down the pipe, but that doesn’t mean that the sky is falling. 26 will bring opportunities in Colorado real estate. What property types and areas are my top picks for Colorado in 2026 and what am I avoiding?
Before getting into my top picks for residential and commercial real estate in Colorado, I want to disclose that I am not a realtor nor an investment advisor, I am a private real estate lender and I personally invest in real estate and hold and service loans throughout the state. Below are my opinions based on my personal experiences having survived through various real estate cycles.
Best Commercial real estate investments in Colorado
Although the media keeps harping on the huge declines in values on commercial properties there are still values out there. Three property types are my favorite in today’s environment.
- Light industrial under 5k feet. Larger industrial properties are getting hammered as big tenants pull back on storage, manufacturing, etc… The smaller properties are still performing well as there is always a demand for small industrial space with a drive in door. Various tenants like a plumber, granite, vehicle, etc.. desire these spaces. Regardless of what is happening in the overall commercial sector there will typically still be demand in the smaller spaces. Note large buildings also have new green building requirements that you need to be aware of.
- Smaller office condos (not in large buildings). Small businesses still need and desire an office, but they don’t necessarily want to be in a huge office building. Ground level office condos are still in huge demand in suburban locations. Just like smaller industrial there is always a demand for these type spaces and there are not many new ones being built.
- Multifamily: Class B smaller properties are still in demand as there is a glut of class A apartments available and people still need affordable housing. Note, you need to be careful with class C properties with all the new laws in CO on habitability, it is now considerably more expensive to operate less expensive properties.
- Outdoor storage: If you can find it, people and businesses always need a place to store large items from boats, RVs, construction equipment, etc…..
Best Residential real estate investments in Colorado
On the residential side, I like suburban locations that are smaller properties. For example a 2 bedroom house is very desirable to rent for a reasonable price. I would stay away from larger properties if the intent is a long term rental. 2 bedrooms is the sweet spot in today’s market.
Areas I like in Colorado to invest in real estate
- Suburban: areas like Castle Rock, Golden, etc.. continue to be in demand with good schools and much lower taxes than Denver county
- Mountain/ski towns: although expensive, the mountain towns are still desirable, my top picks are Vail, Steamboat, Aspen, and Telluride
- Foothills: Areas like Boulder, Evergreen, etc… are good bets as there is very limited ability to increase capacity in the area.
Areas I’m more nervous about investing in Colorado Real estate
- Denver: The tax and regulations of Denver county make it extremely difficult to invest either in residential or commercial properties. It is considerably more expensive than the suburban locations and therefore the return is much less. I’d be very hesitant in Denver County.
- Several of the Western slope markets: I think several of the Western slope markets like Grand Junction, Montrose, and Delta have gotten ahead of themselves and salaries in the area do not justify the prices. My guess is that you will see a 10-15% pull back in several of the Western Slope Markets.
- Certain mountain markets: I think markets like Silverthorne, Leadville, Pagosa Springs, have gotten well ahead of themselves and are primed for a pull back similar to some of the Western slope markets.
- High rise condos in the front range: between insurance issues and huge increases HOA dues for increased maintenance, it is tough to make a case for purchasing a condo except at an extremely low level, even then you need to be very cautious as a huge special assessment could easily sink your investment. I would be especially nervous on lower priced condos as they do not have the reserves for the big projects like elevators, roofs, etc.. and it will be a downward spiral with prices. Note, although I am highlighting the front range, condos in the some mountain towns will also feel the pain especially with higher insurance costs.
Summary of Best places to invest in Colorado real estate 2026
Although there is considerable uncertainty in the market with lots of downside risk, there are still good real estate investments out there. I like the smaller commercial industrial spaces along with smaller free standing office condos and class B multifamily. Typically, even in a downturn these properties will continue to perform much better than the rest of the market. On the residential side, I like the suburban markets especially the smaller properties with about 2 bedrooms as there is considerable demand at this price point.
On the flip side, I’d recommend being extremely cautious in Denver County and many of the Western slope markets along with rural markets. Remember in every cycle there is opportunity, and I am a believer in putting my money where my mouth is, and I’ve invested in properties in the last several months that fit the criteria above.
Additional Reading/Resources:
- https://coloradohardmoney.com/2025-best-colorado-ski-real-estate/
- https://coloradohardmoney.com/colorado-decarbonization-law-real-estate-impact/
- https://coloradohardmoney.com/new-ghost-tax-in-denver-how-much-will-it-cost-you/
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Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. He is the owner of Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
Glen resides in Colorado, lends in Colorado, owns property in Colorado, and services loans in Colorado which provides a unique real estate prospective of what is actually happening on the ground both in Denver and throughout Colorado. My goal of this real estate blog is to provide an honest assessment of what I see happening in Colorado real estate and how it will impact real estate owners, buyers, realtors, mortgage professionals, etc…
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