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 (KDVR) – Denver and the Plains will see extra clouds Thursday with isolated storm out east and warm highs along the Front Range.
Weather today: Partly cloudy and warm
Clouds kept temperatures mild this morning and pockets of sunshine through the afternoon help us warm to the middle 80s.
We will be very close to tying a daily record high, but a light northerly breeze should stop us from hitting 87. The Eastern Plains can also see some isolated storms in the afternoon. There are also some Red Flag Warnings in the state, winds will be at 10-20 mph with gusts to 40 mph, avoid any burning or open flames in these areas.
Weather tonight: Lingering clouds
Partly cloudy skies through the day will stick with us tonight. Overnight lows will dip into the low 50s with a lighter wind.
Looking ahead: Cooler weekend with shower chances
Friday rounds out the workweek with partly to mainly sunny skies and comfy highs in the lower 80s. Saturday looks comfy as well with partly cloudy skies, highs in the upper 70s and afternoon storm chances. Sundayis still mild as highs hit the middle 70s, but clouds increase through the day with showers and storms in the evening hours. That rain can linger overnight and into Monday.
Monday has showers through the day and maybe a few flakes in the high country. Highs on Monday will be in the lower 60s with a breeze and cloudy skies. Shower chances linger into Tuesday with below average highs in the lower 60s with cloudy skies. Wednesday has smaller storm chances and a bit more sunshine as seasonal highs make it to the lower 70s.
DENVER (KDVR) — Two Denver police vehicles were hit by separate drivers during a traffic stop last week, according to a social media post from the Denver Police Department.
On May 7, officers responded to a crash on northbound Interstate 25 near the exit for Alameda Avenue.
The officers were parked with their emergency lights on to direct the traffic away from the scene of the crash. Despite the lights being on, two separate vehicles crashed into the officers’ vehicles.
One driver caused minor damage to a Denver police vehicle and was cited for careless driving. The second driver caused extensive damage to a police vehicle and was cited for careless driving, as well as arrested for allegedly driving under the influence during the crash.
Officers were in their vehicles during the incident, with one uninjured and the other taken to the hospital with minor injuries.
“Traffic safety is a shared responsibility! If you come upon flashing lights, emergency vehicles, tow trucks, or disabled vehicles while driving, move over at least one lane or slow down if it’s not safe to move over. And don’t drive under the influence,” said the department in the post.
Denver’s outdoor warning sirens will sound for three minutes on Wednesday morning as officials test the city’s emergency systems.
All 86 outdoor sirens are scheduled to go off at 11 a.m., and at the same time the wireless emergency alert system will send a test text message to all mobile phones in Denver.
People in neighboring counties may also receive the emergency alert message, the Denver Office of Emergency Management said in a statement.
“Speed and clarity are critical in an emergency,” Executive Director Matthew Mueller said in a statement. “This test helps ensure Denver can deliver alerts across multiple platforms, so people know what to do right away.”
Denver officials have mistakenly sent emergency alerts about isolated police activity to the entire city twice in recent months — once in January when a person was barricaded near the University of Denver and once in April when two armed robbery suspects ran into a nearby home in Ruby Hill.
Denver emergency response officials may start using the outdoor sirens more often, including for destructive thunderstorms or flash flooding, instead of just for tornado warnings, city leaders said in a news release.
While Denverites don’t need to take any action during the test on Wednesday, the sirens are usually a sign to seek shelter indoors immediately and check for updates from the city and local news outlets, according to Denver officials.
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