Denver Funds Office Conversions for Downtown Housing
The city is backing projects to turn 12 million square feet of vacant office space into new residential units.
Updated on Oct. 22, 2026 in Commercial
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The Denver Downtown Development Authority has approved $91 million in funding to convert vacant office towers into residential units. These projects aim to address the approximately 12 million square feet of empty office space downtown while growing the city's residential population.
Why it matters
By subsidizing the conversion of vacant commercial towers into housing, the city hopes to stabilize property values and improve urban vitality. This shift helps address a significant glut of empty office space that currently limits the economic utility of the downtown core.
Denver currently holds the No. 6 rank nationally for commercial property conversions. The city has 12 million square feet of vacant office space, and officials are working toward a goal of 70,000 residents downtown by 2045.
The players
Denver Downtown Development Authority
A local agency managing a $570 million budget to incentivize urban revitalization projects.
Denver City Council
The local legislative body that authorizes public loans for redevelopment and infrastructure.
Asher Luzzatto
A developer overseeing multi-tower conversion projects with a $310 million estimated total cost.
Richard Florida
An urban researcher and analyst who released a 2026 report on the future of the downtown economy.
The details
Developers are utilizing DDA-provided loans to cover the costs of retrofitting aging office buildings into residential, retail, and daycare spaces. For instance, the University Building is receiving a $14.7 million loan to create 120 units, while the Petroleum Building project requires $45 million to convert 12 floors into 178 apartments. These conversions leverage a reset in current building values, allowing developers to transform structures that are no longer viable as traditional offices.
Timeline
2025: Downtown Denver added 468 residential units.
November 2025: The DDA approved $14 million for the Petroleum Building project.
September 2026: Developer Asher Luzzatto filed a commercial construction permit.
October 15, 2026: Richard Florida released his report on downtown Denver.
October 2026: Denver City Council approved a $14.7 million DDA loan for the University Building.
Money Landscape
The push to convert office space follows the city's strategy for urban density laid out by the Downtown Denver Partnership. This initiative marks a major pivot in city planning as Denver attempts to transition its core from a traditional business district to a residential hub.
These development projects may increase housing inventory in the downtown core, potentially influencing future rental rates. Homebuyers and renters should track the delivery of these thousands of planned units as they become available to evaluate local market competition.
The takeaway
The transformation of vacant offices into thousands of apartment units is a central pillar of Denver's long-term economic planning. Residents should monitor building permits in their neighborhood to understand how these large-scale conversions might impact local housing supply.
Further reading
For broader trends in local real estate, visit Commercial.
Source note: This article includes information reported by Bisnow.
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Should cities prioritize converting vacant office buildings into residential housing to revitalize downtown areas?
