Office values have reset
Metro Denver office vacancy has been far above its historical range for several years. Buyers now expect larger tenant improvement packages, more free rent, and longer vacancies between tenants. If the last appraisal of a building was done before 2020, its assumptions probably no longer hold.
What drives an office appraisal
The income approach does most of the work. We start with the rent roll and the leases: what each tenant pays compared with current market rent, when leases expire, what renewal options exist, and who pays which expenses. From there we estimate the cost of re leasing space, including tenant improvements, commissions, free rent, and downtime, using current Denver deals rather than older rules of thumb. For buildings with a lot of lease turnover, we build a discounted cash flow model.
Sales comparison supports the income approach. With more distressed office sales in the market, we check whether each comparable was a normal sale or a lender or estate disposition before we rely on it.
Properties we appraise
Multi tenant suburban office in the southeast suburbs, northwest corridor, and west metro. Smaller downtown and urban buildings. Single tenant and net leased office. Medical office. Owner occupied buildings financed through conventional or SBA loans.
When owners call us
Lenders hire us for acquisition and refinance loans. Owners often call about property tax appeals, since assessed values on office buildings have not always kept pace with the market. We also handle estate appraisals.