It is no secret that – in recent years – Denver Commercial Real Estate has been an important in the funding of large-scale city initiatives and improvements in mandated sustainability.
In addition, property taxes are on the rise. Many real estate owners are starting to discover that owning property in the City of Denver is becoming a financial strain – especially those that specialize in commercial real estate.
One of the individuals that currently work on the Board of Directors in the Denver Metro Building Owners and Managers Association has stated that they are working for the real estate owners in the community. He continues by stating that they are striving to keep their operating expenses as low as possible while focusing on their investments – all at the same time.
Unfortunately, many real estate professionals feel as if they are being unfairly targeted and relied upon by the city and that they are handling the largest portion of Denver’s funding endeavors.
Forms of Rent
While it is true that many real estate owners know and understand the funding requirements of the city, the detrimental impacts are starting to not only affect them – personally – but, they are also starting to detrimentally impact their tenants.
The costs have to be made up – in one way or another. Landlords are having to make up for their costs and expenses in forms of rent. Ultimately, this is creating what many are referring to as the “perfect storm” in the real estate market. The city is imposing expenses on real estate owners. Then, those real estate owners are imposing additional expenses on their tenants – be it through commercial buildings or traditional apartments.
As this continues, tenants are no longer going to be able to handle the expenses that are currently being imposed upon them. In turn, they will leave. In the end, the landlords will lose their tenants, the city will lose the funding from their real estate owners, and the city will lose its funding.
All real estate owners and property managers should become educated on where their money is going and why. It is true that real estate accounts for a large portion of the city’s income; however, it is also true that it is becoming increasingly expensive for individuals and businesses to pay the rents that are being advertised in the city.
In fact, Denver has currently determined that they are in need of more “affordable” housing units for families that currently cannot afford the monthly rents being charged. So, how does it make sense to charge real estate professionals more to fund these projects? The owners will have to make up the charges by charging their tenants more.
Isn’t this actually defeating the purpose?
You have a voice and you should make it heard. We want to remain in the city and we want to continue to attract tenants for our buildings. Alternative funding sources should be pursued.
