Denver Funds Downtown Office Conversions
The city is financing the transformation of vacant office towers into thousands of new residential apartment units.
Updated on Oct. 22, 2026 in Commercial
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The Denver Downtown Development Authority has approved over $91 million in funding to convert vacant office towers into residential units. These projects aim to address the city's 12 million square feet of empty office space by transforming legacy buildings into thousands of new apartments.
Why it matters
By subsidizing these conversions, the city hopes to revitalize downtown and reduce commercial vacancies that have persisted in the post-pandemic era. This initiative is central to a long-term goal of doubling the downtown residential population to 70,000 residents by 2045.
The DDA has approved $91 million for conversion efforts, including a $14.7 million loan for the 120-unit University Building project. Meanwhile, the Petroleum Building is undergoing a $45 million conversion to create 178 residential units.
The players
Denver Downtown Development Authority
A municipal entity that manages tax increment financing to stimulate urban revitalization and infrastructure improvements in the city center.
Denver City Council
The local legislative body responsible for approving public funding and city ordinances that impact housing development and land use.
Asher Luzzatto
A real estate developer currently leading the conversion of several major commercial towers into residential properties.
Richard Florida
An urban studies theorist who recently published a report analyzing the economic future of downtown Denver.
The details
Developers are repurposing vacant office towers by stripping them to their skeletons to install new residential layouts, retail storefronts, and childcare facilities. The DDA facilitates these high-cost projects through direct loans that bridge the financial gap caused by shifting property values. These subsidized renovations allow developers to convert large, aging office floorplates into viable living spaces, addressing the city's significant excess of commercial inventory.
Timeline
2025: Downtown Denver added 468 new residential units.
November 2025: 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 a report on downtown Denver.
October 2026: Denver City Council approved a $14.7 million DDA loan for the University Building.
The Home Front
Denver is following the national trend of office-to-residential commercial property conversions to manage high vacancy rates. The city currently ranks sixth in the country for these adaptive reuse projects, which aim to restore vibrancy to downtown business districts.
Residents should monitor local zoning news and project timelines as these large-scale downtown developments move from permitting to construction. Those interested in potential downtown housing should keep an eye on upcoming pre-leasing announcements for the newly converted University and Petroleum buildings.
The takeaway
The transformation of vacant office towers into residential space is accelerating to meet long-term city growth targets. Residents and investors should track the progress of the 3,000 planned units as they move toward completion in the downtown corridor.
Further reading
Learn more about the latest trends in Denver Commercial development.
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?
