As Denver’s downtown undergoes a major transformation, property owners are presented with new opportunities for adaptive reuse. In February 2025, the city opened applications for projects that will help reshape the downtown experience, following the approval of $570M in funding to revitalize the area. Notably, about 80% of early registration forms are focused on office-to-residential conversions, a trend driven by Denver’s increasing demand for multifamily housing amidst a struggling office market.
Tax Considerations and Strategic Planning for Property Owners
For property owners considering redevelopment projects, understanding the tax implications and potential funding opportunities is essential:
Office-to-Residential Conversions: These projects, such as the 900 units delivered in 2024, may trigger reassessments that affect property valuations and taxes. Office-to-apartment conversions are expected to rise, with over 1,400 units planned for 2025.
Incentives and Financing: The $570M approved for downtown revitalization includes funding for adaptive reuse projects. Property owners should explore how these funds can help offset redevelopment costs.
Growth Potential in Denver’s Adaptive Reuse Market
With 32 office-to-residential conversion projects in the pipeline, Denver increasingly embraces adaptive reuse as a solution to its vacant office space and housing demand. The Denver Downtown Development Authority’s funding initiatives are key to supporting these efforts, focusing on increasing livability, mobility, and job opportunities and enhancing cultural and community spaces.
Property owners considering redevelopment projects should assess how these initiatives could align with their own goals.
At Catalyst Property Tax Consultants, we specialize in guiding clients through the tax complexities of redevelopment. Contact us for a complimentary assessment and strategic advice.