The city of Denver now has a clearer picture of what distressed downtown office buildings would make the best candidates to switch over to residential uses, which should help in its efforts to conv…
The city of Denver now has a clearer picture of what distressed downtown office buildings would make the best candidates to switch over to residences, part of a larger effort to make it easier for investors and developers to take on the task.
Passers-by are reflected in the window of a closed and empty restaurant on the 16th Street Mall in downtown Denver on Feb. 1, 2023. The downtown area’s economic reliance on office workers — many who are continuing to work from home — has made post-pandemic recovery more difficult. If a building becomes distressed, meaning the rents can’t service the debt payments, its value drops. And the lower the price falls, the better the chance a developer can step in and attempt a conversion. Many buildings aren’t there yet, but Denver is working to head off the downward spiral, and also address another problem it has,Zillow estimates metro Denver is short 70,000 housing units.
“We are really interested to see how this housing could meet the needs of people throughout the income spectrum,” said Andrew Iltis, vice president of planning and community impact at the Downtown Denver Partnership.
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