Downtown Denver's office vacancy rate grows to 38.2%
coloradosun.com
Downtown Denver's office vacancy rate grows to 38.2%
1–10 of 130 posts
Re: Downtown Denver's office vacancy rate grows to 38.2%
#2Looks like there is an opportunity to convert a lot of that into residential space.
Re: Downtown Denver's office vacancy rate grows to 38.2%
#3Well but is the demand for office space in Denver so high?
Re: Downtown Denver's office vacancy rate grows to 38.2%
#4Looks like there is an opportunity to convert a lot of that into residential space.
Not necessarily. Things like "where do pipes run" so can get tricky along with code requirements for access.
There's a NYT article on the challenges about this from a few years ago: So You Want to Turn an Office Building Into a Home? -- Here’s How to Solve a 25-Story Rubik’s Cube https://www.nytimes.com/interactive/2023/03/11/upshot/office...
Re: Downtown Denver's office vacancy rate grows to 38.2%
#5Looks like there is an opportunity to convert a lot of that into residential space.
I read something at some point that it's more expensive to convert these into residential buildings than it is to literally demolish and rebuild.
I'm not entirely sure how that math works out, or why, because one would think it couldn't be that complicated. Maybe someone here knows more about this.
Re: Downtown Denver's office vacancy rate grows to 38.2%
#6Looks like there is an opportunity to convert a lot of that into residential space.
I read something at some point that it's more expensive to convert these into residential buildings than it is to literally demolish and rebuild. I'm not entirely sure how that math works out, or why, because one would think it couldn't be that complicated. Maybe someone here knows more about this.
I assume it's because they would need to re-wire electrical and retrofit plumbing on a massive scale to accommodate kitchens and bathrooms for separate units. They end up needing to gut the entire building and cut through floors and ceilings without damaging any structural and load-bearing parts. It doesn't sound easy nor cheap.
Re: Downtown Denver's office vacancy rate grows to 38.2%
#7Looks like there is an opportunity to convert a lot of that into residential space.
I read something at some point that it's more expensive to convert these into residential buildings than it is to literally demolish and rebuild. I'm not entirely sure how that math works out, or why, because one would think it couldn't be that complicated. Maybe someone here knows more about this.
The plumbing systems in commercial buildings are not big enough to handle residents usage. Residents use more water and the outbound sewage systems need to be larger.
Re: Downtown Denver's office vacancy rate grows to 38.2%
#8Looks like there is an opportunity to convert a lot of that into residential space.
Not necessarily. Things like "where do pipes run" so can get tricky along with code requirements for access. There's a NYT article on the challenges about this from a few years ago: So You Want to Turn an Office Building Into a Home? -- Here’s How to Solve a 25-Story Rubik’s Cube https://www.nytimes.com/interactive/2023/03/11/upshot/office...
[deleted]
Re: Downtown Denver's office vacancy rate grows to 38.2%
#9Looks like there is an opportunity to convert a lot of that into residential space.
Not necessarily. Things like "where do pipes run" so can get tricky along with code requirements for access. There's a NYT article on the challenges about this from a few years ago: So You Want to Turn an Office Building Into a Home? -- Here’s How to Solve a 25-Story Rubik’s Cube https://www.nytimes.com/interactive/2023/03/11/upshot/office...
While converting it is not economical, class c office space (which is least desirable) demand is probably gone in this market due to lackluster demand for office space; the value of the building will get zeroed out by the market, at which point it can trade hands, be demo'd, and new residential can go up in its place.
You can think of class c office space, broadly speaking, as oil wells that have very little life left, and get bought up by folks who intend to extract the cashflow until they dump the externality on the public government and taxpayers (like abandoned shopping malls).
A recent example in St Louis is the AT&T office tower [1] [2].
[1] One of St. Louis’ tallest office towers, empty for years, sells for less than 2% of its peak price - https://www.costar.com/article/642008108/one-of-st-louis-tal... - April 10th, 2024 ("Goldman Group buys 44-story former AT&T office tower for $3.6 Million")
[2] St. Louis office vacancy hits all-time high [21.2%] as major companies downsize their footprints - https://www.bizjournals.com/stlouis/news/2026/01/15/office-v... - January 16th, 2026
(conversions when the economics pencil out, haircuts for investors when they don't and more investment is needed to wholesale replace a structure)
US office vacancy rates chart supposedly pulled from Moody's: https://old.reddit.com/r/charts/comments/1p8mhmq/us_office_v...
Re: Downtown Denver's office vacancy rate grows to 38.2%
#10Earlier quoted context omitted.
I read something at some point that it's more expensive to convert these into residential buildings than it is to literally demolish and rebuild. I'm not entirely sure how that math works out, or why, because one would think it couldn't be that complicated. Maybe someone here knows more about this.
The plumbing systems in commercial buildings are not big enough to handle residents usage. Residents use more water and the outbound sewage systems need to be larger.
There's already enough plumbing in there for a whole office to shit when they get to the office.
History favors the bold, and code inspectors blabbering about "written in blood" don't see all the homeless people they kill via reduced access to housing.
I've seen plenty of artist collectives that manage it; on paper they are office/industrial but actually everyone lives there. Every once in awhile one burns down but the mortality rate isn't as high as living on the streets which is ultimately what happens to those on the bottom of the socio-economic pyramid when the ones higher up push the ones under them down a rung to snag housing.