As I sit in my office and look west, for the first time I can see directly through to the University of Colorado football stadium. Prior to 2024, it was the famed Millennium Harvest House and home to the Rocky Mountain Tennis Center. I can’t begin to count the countless hours I spent on those courts or those F.A.C.s that were so famously memorialized in Newsweek magazine. A year from now, the 600-plus units of student housing will be vertical, and my view will instead be of future CU students who may invent the next cure for cancer or perhaps become the next Heisman Trophy winner.

That segues nicely into a year-end shoutout to Coach Prime, the CU football team and staff, the AD’s office, and, of course, Travis Hunter. You collectively made Boulder a better place than you found it—thank you!

I had so wanted this year-end 2024 column to be much different from 2023, but unfortunately, challenges like high interest rates, capital competition, and geopolitical tensions still persist. As a result, the sidelines were very crowded, with few willing to make real estate decisions. HOWEVER, the saying “survive until ’25” feels like it might actually ring true.

Items to note:

  • Life Sciences: Silicon Valley Bank reported that 55 U.S. biotech companies landed VC deals, each worth $100 million or more. There’s an expected uptick in R&D for healthcare, particularly in areas such as obesity and AI applications. Boulder has PLENTY of life science space, with ownership groups ready, willing, and able to make deals. I expect we’ll see very notable transactions in 2025.
  • Defense and Aerospace: Colorado, including Boulder, has a significant number of defense and aerospace companies. The Senate recently passed an $895 billion defense budget, which bodes well for our local companies like BAE Systems, Lockheed Martin, Northrop Grumman, Sierra Nevada, Blue Canyon Technologies, and Think Orbital.
  • Elevate Quantum: In conjunction with CU,  Elevate Quantum will open a Boulder incubator that will bring new energy to the city, the likes of which we haven’t seen since the pre-COVID life sciences buzz. Currently, there are approximately 35 quantum-related companies in Boulder, and that number is expected to double by 2027.
  • Tourism and Hospitality: Aspen Ski Company’s first foray into Boulder, in partnership with CU, will bring the Limelight Hotel to University and Broadway in 2025. This will provide a much-needed boost to our tourism industry and offer opportunities for companies to host conventions and corporate retreats here in Boulder. Speaking of tourism, I also hope 2025 brings the announcement that the Sundance Film Festival is relocating to Boulder. 😊
  • Return to Office Trends: While Boulder has been a leader in remote work, a recent survey of 50 local companies found that more than 60% of leadership teams expect to push for in-office work at least three days a week. This aligns with bigger companies like Google, Amazon, Salesforce, and JPMorgan, which are clearly signaling that changes are in the works. No real data, just casual coffee shop conversations, but I think those under 45 enjoy going to the office—just not every day. Will this translate into an increase in leasing activity? Maybe not overnight, but I believe this shift back to the office will help reduce vacancy to a healthier level, around 15%, by year-end 2025. Cap rates for office buildings still need a reality check (gone are the 5%-7% cap rates), but there will be great opportunities for the strategic long-term holder.
  • Future Trends: My curiosity drifts to the Dark Horse and what the future holds for that fabulous corner, the decline in alcohol sales as it relates to our restaurants, and whether 2025 will be the year Boulder gets a Bitcoin ATM.

2025 will be a year of opportunities. On behalf of the Dean Callan team, we hope many opportunities come your way and that you can celebrate the gifts Boulder gives us every day of the year!

-Becky Callan Gamble, CEO