Dec
11
Public Policy Update: Key Issues NAIOP Colorado Is Tracking
By: 2025-2026 Public Policy Chairs
As the 2026 legislative and rulemaking landscape begins to take shape, NAIOP Colorado’s Public Policy team is actively engaged on a wide range of proposals that could significantly impact commercial real estate, construction, and business operations across the state. Here’s a snapshot of what we’re watching — and why it matters.
- Colorado Energy Office: “Net Zero by 2050” Legislation: The Colorado Energy Office is advancing new legislation aimed at reaching statewide carbon neutrality by 2050. They recently backed down from the original goal of 2040. While the 2050 goal remains ambitious, the policy details will have major implications for commercial buildings, capital planning, and compliance costs. NAIOP is working closely with industry partners to ensure mandates are achievable and aligned with real-world building operations.
- Rodenticide Restrictions: A proposed statewide restriction on rodenticides aims to protect wildlife, but it introduces significant concerns about building safety, public health, and ongoing property management. NAIOP is monitoring the bill to ensure legislators understand the operational realities of maintaining safe commercial spaces.
- “Extreme Temperatures” Construction Limits: A policy concept would restrict construction activities during extreme heat or cold. While worker safety is essential, NAIOP is raising concerns about the feasibility of weather-based shutdowns in Colorado’s unpredictable climate — and the ripple effects on project delivery timelines, costs, and commercial supply.
- County Authority to Impose Excise Taxes: Several counties are exploring expanded authority to levy excise taxes. NAIOP is engaging early to ensure any such proposals are transparent, justified, and do not create unpredictable or duplicative cost burdens on development or business activity.
- Retainage Reform: Option to Use a Retainage Bond: A new proposal would allow contractors to post a retainage bond instead of the traditional retainage withholding. NAIOP continues to evaluate how this change may influence project financing, risk management, and administrative complexity.
- Ballot Initiative #91: Retail Theft & Vehicle Theft Penalties: Ballot Initiative #91 seeks to strengthen penalties for retail and vehicle theft — issues that continue to impact commercial centers throughout Colorado. NAIOP is watching this initiative closely as it moves toward the 2026 ballot, seeing strong potential for meaningful public-safety improvements.
- CDOT I-270 Widening Project: Public Comment Open: CDOT has released updated plans for the I-270 widening project, a key freight and commuter corridor that directly affects commercial access and development. Planned improvements include additional lanes, interchange redesigns, and traffic flow enhancements. Members are encouraged to review the proposal and submit public comment: Submit your comments HERE
- Legal Update: NAIOP Colorado’s Lawsuit with, CAA, AAMD & CHLA: NAIOP Colorado, the Apartment Association of Metro Denver, the Colorado Apartment Association, and the Colorado Hotel & Lodging Association continue to pursue litigation challenging state regulatory overreach affecting commercial and multifamily properties. The case is currently before the court, with motions to dismiss under review by the judge.
A major development in recent weeks: the Air Conditioning, Heating & Refrigeration Institute (AHRI) submitted a powerful amicus brief supporting the lawsuit. AHRI’s filing highlights the sweeping technical and economic implications of the challenged regulations, particularly around building systems, equipment requirements, and long-term retrofit feasibility. Their participation reinforces the broader industry concern that these rules extend beyond legislative authority and impose significant unintended costs.
NAIOP views this amicus support as a strong validator of the concerns raised by Colorado’s commercial real estate community and an important contribution as the judge considers the pending motions.
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