Doug’s Commercial Report (Denver)

Denver Green Roof

Any building that has more than 25,000 square feet is now subject to this new intuitive in the city of Denver. That is, once any building that is equal to or greater than this size is either built or pulls a permit it will be required that they install a green roof system. It is a scaled coverage that starts at 20% roof coverage and goes up to 60% coverage for larger sites.The Denver Post put together this informative clip that does a great job explaining this topic in less than 3 minutes:

Video

Did you know there is a change coming for leases!

While I know everyone loves to read accounting stories, this one will make some changes to the entire real estate industry. In short, many analyst are saying that the change that is coming to the way we must treat leases is going to influence the lease versus purchase dissension differently than our current environment.As a real estate practitioner we can expect more disclosures to bifurcate things like TI or CAM costs. If you are interested in more details on this topic, this is a good resource:

Link to details

I purposefully didn’t put the details of the Financial Accounting Standards Board (“FASB”) or GAAP in this article, but I am happy to discuss with you what I am seeing if you are interested.

Multi-family continues to outrun all the other property types (the blue bar). I find this interesting because this wasn’t always the case as we can see from the chart above. In fact, this appears to have changed between 2011 and 2012. Maybe I am drawing a false correlation, but this is around the same time as the construction defect laws first started. I imagine if we could put a residential chart next to this one that showed the construction of condos / town-homes we would see a trade off between multifamily units and condos / town-homes.

Also, I am always skeptical of generic rules when it comes to market cycles. However, that seven year story (the story that markets cycle around every seven years) seems to fit with this data.

* Chart provided by Denver Office Market Overview Report – 27 Nov 2017 – By CoStar Market Analytics

Disclaimer: All information provided is not intended for investment advice. Please contact me directly if there are any further inquiries on the data presented above.

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