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Steamboat Springs — The abundance of vacant commercial properties in Steamboat Springs that existed a year ago has slowly dried up despite -- or perhaps as a result of -- an economy that continues to struggle, according to some in the commercial real estate community.

The bigger question that remains is how much commercial growth is viable for the city, an issue city officials have been grappling with for some time.

"What I've seen over the last year is an absorption of the existing vacant commercial space," Commercial Property Group President Medora Fralick said.

Fralick said existing office and warehouse space was largely filled over the past year, but retail space is still a concern.

"I still think retail is a problem," Fralick said. "To me, that's a reflection of the economy."

Bill Moser of Moser and Associates agrees.

"The biggest problem I see right now is the retail shop," Moser said. He attributes Lincoln Avenue vacancies to the economy, as reflected by continuing declines in city sales tax revenue.

Many commercial spaces, particularly office space, have been filled since the beginning of 2002, largely a result of property owners being forced to lower rents to attract tenants. Prices have dropped as much as 20 percent over the last two years, Moser said.

"If something's priced right, people are anxious to get into it," Moser said. "I think (the vacancies) are tightening."

But the existence of open retail space should serve as a warning about retail growth, Moser said.

"We have to keep the downtown areas viable," Moser said, while acknowledging that determining when to curb or encourage commercial growth is difficult.

Two large commercial projects are in the early stages of planning, though neither has been approved by the city.

Central Park Plaza South would add 28,800 square feet of retail space to the site bounded by U.S. Highway 40, Mount Werner Road and Central Park Drive. The project's developer, THF Steamboat Springs Development LLC, owns all of the retail spaces in Central Park Plaza with the exception of Wal-Mart and City Market.

Wildhorse Marketplace would sit east of the Sinclair Gas Station on Mount Werner Road and across the road from Central Park Plaza. The commercial site's revamped plans call for 88,000 square feet of office and retail space in an eight-building commercial center.

The largest city-approved commercial real estate project is the renovation of Sundance Plaza. The plaza, built in the late 1970s, has nearly 50 tenants. Renovation plans seek to capitalize on the natural beauty of Fish Creek, which flows on the backside of many of the plaza's storefronts.