While a new hotel and visitor’s center outside the Air Force Academy’s north gate are nearing completion, some portions of the expansive project — an office building and smaller commercial buildings — are still in the planning stages as they have faced tough economic headwinds.

Blue & Silver Development Partners CEO Dan Schnepf said he expects work on the new office building could start at the end of 2026 and provide the highest quality office space and sensitive compartmented information facility space, or SCIF space, required by the Department of Defense to work with classified information.

Schnepf is hopeful the building can function like the Catalyst Campus for Technology and Innovation in downtown Colorado Springs and allow cadets the opportunity to work on projects with businesses.

Deloitte, a newer player in the aerospace and space industry, and a global company is expected to be the anchor tenant for the building that could be between 80,000 and about 170,000 square feet, he said.

“They are absolutely excited about being on the project,” he said.

Blue & Silver is still looking for additional office tenants through a real estate broker, but Schnepf is confident the building will fill a needed niche, despite high vacancy rates facing offices nationally following the rise in working from home driven by the pandemic.

In addition to the large building, Blue & Silver is planning for a strip mall and standalone businesses. He expects a gas station, bank and trading post-style shop selling Colorado-themed gear, will be among those in the standalone buildings. There is also room for a mid-to-high-level restaurant that would stand alone.

Other businesses, including a credit union and a brew pub, are interested in the strip mall.

The high cost of retail space in the development has slowed interest with leases $10 to $15 higher per square foot, pushing them up to $40 to $50 per square foot compared to existing leased space, he said. The high cost for new space has been driven by inflation and higher interest rates, he said.

Still, as inflation and interest rates ease, excitement about the project has picked up.

Schnepf expects the gas station’s construction will start first in 2025, he said.

The highly-anticipated Hosmer Visitor Center is expected to open in December 2025. The nine-story Hotel Polaris is expected to open this coming December.

In the long-term, a business improvement district will maintain the commercial center near the north gate through property taxes, he said.

“We will always have a nice looking and up-to-date entrance,” Schnepf said.