Downtown Colorado Springs Retail
For Sale
Contact for pricing
206 N Tejon St, Colorado Springs, CO 80903
Turn-of-the-century building in the heart of downtown.
Property Size7,500 SF
Price / SF$253.33
Days on Market663
Property Features for 206 N Tejon St
General Information
Standard status
Active
Size
7,500 SF
Property subtype
Retail
Zoning
FBZ-T1
Investment Type
Owner/User
Building Details
Year Built
1900
Stories
2
Tenancy
Single
Listing Agency:
Colorado - OLIVE REAL ESTATE GROUP, INC
(719) 598-3000
Listed By:
Jeremy Shirley · License #Co FA.100067771
Source:
Crexi
Added: Oct 29, 2024
Changed: Aug 8
Last Checked: May 13 at 8:10PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Colorado - OLIVE REAL ESTATE GROUP, INC
Investment Insights
Based on property information with market context.
Located at 206 N Tejon Street in the retail heart of Downtown Colorado Springs, this turn-of-the-century building offers a unique opportunity for an owner-user. The property features 14-foot ceilings, floor-to-ceiling brick walls, and skylights that provide abundant natural light. Situated directly across the street from Acacia Park, which recently underwent a $2 million renovation, the location attracts visitors from all over the city. The property is located in a Qualified Opportunity Zone and Enterprise Zone, providing special tax incentives and credits for new and established businesses. Parking is available in the city parking garage directly behind the building, which offers 305 parking spaces. The property enjoys excellent street frontage and visibility to both pedestrian and vehicle traffic, making it ideal for retail, restaurant, or other customer-facing businesses. The building's historical features and fully utilizable lower level, combined with its flexible interior, make it perfect for modern renovations while preserving its unique architectural charm. The property has a size of 7,500 square feet.
Key Highlights
- Prime Downtown Location: Situated in the retail heart of Downtown Colorado Springs, directly across from the renovated Acacia Park.
- Tax Incentives: Located in a Qualified Opportunity Zone and Enterprise Zone, offering special tax benefits.
- High Visibility: Excellent street frontage and visibility to pedestrian and vehicle traffic.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$90,248
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.75%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,804,960
$1.8M
Cap Rate 7%
$1,289,257
$1.3M
Cap Rate 9%
$1,002,756
$1.0M
Market Conditions
NOI Build-Up for 7,500 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$135.0K $18.00/SF
− Vacancy
−$6.1K −$0.81/SF
EGI
$128.9K $17.19/SF
− OpEx
−$38.7K −$5.16/SF
NOI
$90.2K $12.03/SF
Area
Colorado Springs, CO
Vacancy
4.50%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,804,960
Cap Rate 7%
$1,289,257
Cap Rate 9%
$1,002,756
Alternative Uses
Best Use
Retail
$1.29M
$1.13M – $1.50M
NOI $90,248 @ 7.0% cap · market cap 4.75%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.48M
$1.30M – $1.73M
NOI $103,680 @ 7.0% cap · market cap 5.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,789
Businesses Nearby
114k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 70%
Shops & Services 18%
Hotels & Casinos 9%
Electronics 2%
McDonald's
Dining
25,596 visits/mo
0.3 miles
Dutch Bros. Coffee
Dining
16,776 visits/mo
0.4 miles
Taco Bell
Dining
10,363 visits/mo
0.3 miles
Carl's Jr.
Dining
9,767 visits/mo
0.1 miles
Wendy's
Dining
8,827 visits/mo
0.2 miles
Demographics for 80903, CO
15,944
Population
8,340
Households
1.9
Avg Household Size
34
Median Age
39%
College-Educated
95%
High-School Grad
5.4 sq mi
ZIP Area
2,953
Density / Sq Mi
$59,292
Median Household Income
$35,251
Median Earnings
$1,221
Median Rent
$420,000
Median Home Value
Market
Vacancy Rate% for Retail in Colorado Springs, CO
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Storefront property - Turn-of-the-century building in the heart of downtown.
Where is this storefront property located?
The property is located at 206 N Tejon St Colorado Springs, CO.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: Prime Downtown Location: Situated in the retail heart of Downtown Colorado Springs, directly across from the renovated Acacia Park.; Tax Incentives: Located in a Qualified Opportunity Zone and Enterprise Zone, offering special tax benefits.; High Visibility: Excellent street frontage and visibility to pedestrian and vehicle traffic.
