Denver, CO
Office properties to see ‘a spreading of value’ this cycle, Denver assessor says
Denver Assessor Keith Erffmeyer speaks at BusinessDen’s “The Future of Office Event” on Sept. 10, 2024. (Matt Geiger/BusinessDen)
The Denver official tasked with valuing the city’s real estate said Tuesday that office building valuations will likely bifurcate this cycle, with top-tier properties holding steady while less-desirable properties see significant declines.
“I think we’ll see a spreading of value unlike I’ve ever seen in Denver, going all the way from downtown to the Tech Center — Cherry Creek seems to be immune to anything, so that might not happen here — but that’s kind of what we’re looking at, is really a two- if not three-tier market,” Assessor Keith Erffmeyer said.
Erffmeyer made the comment at BusinessDen’s “The Future of Office” event, where he and five real estate executives discussed the office sector’s status and outlook. The event was held at the Clayton Hotel & Members Club in Cherry Creek.
County assessors in Colorado value real estate every two years, and the figure directly translates to what an owner pays in property taxes. New valuations go out in May of odd years, and are based on the two-year period ending the previous June. The next notices of valuation will go out in May 2025.
This is the third valuation cycle since the pandemic hit in 2020. But Erffmeyer noted the previous two cycles had few data points to go off when valuing office properties.
“In 2021, our data value was June of 2020, so we were barely three months into the pandemic at that time,” he said. “And frankly, we didn’t know what the world was going to look like, what offices were going to look like, what schools were going to look like, what anything was going to look like. We did our best, quite frankly, to take the sales that preceded Covid and adjust them down for the uncertainty, the risk.”
The 24-story Denver Club building at 17th and Glenarm sold in late 2022 for $52.80 a square foot. (BusinessDen file)
The next cycle didn’t offer much more, as continued uncertainty around the sector resulted in few building transactions.
That’s changed somewhat in the last couple years. Buildings such as downtown’s Denver Club and The 410 have sold for cheap, while structures at 1401 Lawrence and Platte Street’s Riverview have fetched more respectable sums. The Denver Tech Center is also seeing transactions.
Erffmeyer joined the Denver assessor’s office as an intern in 1994 and assumed the top job in 2014. He noted he’s worked to value properties through the Great Recession and the dot-com bust.
“And this revaluation might be the toughest of all of them, just because there’s so many almost conflicting and just dissonance in terms of what we see in terms of sale prices — just in downtown, much less throughout, in my case, Denver, and, speaking for the other assessors, throughout the metro area,” he said.
“Prime” buildings — which tend to be newer and have top-tier locations — will “probably be just fine in terms of value, maybe even see some increases in terms of value,” Erffmeyer said. But as buildings age, “there comes a tipping point somewhere in there where it’s not a prime building anymore.”
“And that’s when we start seeing this kind of bifurcation,” he said. “I’ve heard falling off a cliff, things like that in terms of value. And we read about sales transactions at less than $100 a foot, which just blows my mind when we have warehouses selling for more than $100 a foot.”
Denver, CO
Broncos offensive line is the engine that drives offense
I’ve been covering the Denver Broncos for his entire career and I remember writing up some pretty harsh criticism of his play early on — especially in regards to holding penalties. I recall at one point he was committing holding penalties at a record-breaking rate. He was so far above the rest of the field that he’d break charts if anyone tried to chart it. The best part of that saga is that he never let the outside noise (from me and many others) get to him. He worked on his craft and he got better. And then got even better to the point where it is pretty clear that he is one of the best left tackles in all of football. He is going to go down as one of the best tackles in franchise history too when its all said and done. It’s a great comeback story.
All that said, he wasn’t the only one of the Broncos players on that offensive line to make an impact with guard Quinn Meinerz also being named a PFF All-Pro player. The whole offensive line has been dominant in nearly every category and is the main engine that has driven the offenses successes this season.
4) Denver Broncos
Team OLi Grade: 83.0
Best-Ranked OL: Garett Bolles, 89.0 (7th overall, 3rd position)
Worst-Ranked OL: Alex Palczewski, 63.5 (159th overall, 61st position)
And one more to complete the picture comes from Sharp Football Analysis who has the Broncos ranked fifth-overall in their NFL Offensive Line Stats:
There is so much evidence that shows the trenches on both side of the ball is what has brought the success of the 2025 Broncos. It’s an area that Sean Payton has said in the past is always an area of focus. He knows you don’t win consistently if your team is being dominated in the trenches.
Denver, CO
Here’s how the NFL typically handles the top seeded team’s Divisional Round schedule
As the number one seed in the AFC, the Denver Broncos could end up playing on either Saturday or Sunday. It all comes down to which teams win during Wild Card weekend.
Head Coach Sean Payton was asked about the potential Divisional Round schedule and he said nothing is finalized. However, the NFL has been known to follow a certain schedule that could end up with the Broncos playing on Saturday if either the Buffalo Bills or Los Angeles Chargers win on Sunday and they’d play the following Sunday only if they had to wait until Monday for the outcome of the Houston Texans and Pittsburgh Steelers game.
The other thing with that extra week off is about preparation. One of the better questions the media asked of Payton on Friday was whether or not they do more advanced scouting on potential opponents they have not yet played this season.
“Look, there are four options,” Payton said. “One is in the division. We’ve played one two years in a row—or it feels like that with Houston. Buffalo. We’ll break down kind of all four and then look at… We’ll have personnel reports on the four… You do have enough time to look at third down, look at personnel packages, study situational football. I think that’s pretty common when you look at playoff history. A lot of times, you end up with a division team sometimes in the first round. I know that’s happened a number of times over the years with me. It’s hard to gauge how these other games are going to go not having spent much time looking at New England. [We’ve] seen Jacksonville. It’s one of those where you just watch them. You’re working while you watch them. You’re working on each plan, and then you go from there.”
I came away feeling like Payton and the Broncos know two of their potential opponents fairly well. The other two will get some high level review, but nothing super deep as there just isn’t enough time. That is saved for this coming week when the opponent is finalized.
Payton and his staff have some great experience coaching in the playoffs, so this young Broncos team should be well-prepared for their football game.
Frankly, I like the idea of the Broncos getting their game out of the way early. Give Payton and his staff an extra day to begin the prep work needed for the AFC Championship game provided they come out with a win in the Divisional Round.
Denver, CO
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