The situation in downtown Denver with the former Denver Post building having been purchased by the city and the financial problems ever since bring up an unfortunate example of the need to carry a plan all the way through.
As the below linked article details, it appears that the purchase price was not properly analyzed ahead of time by those involved in the decision. The property itself may have value and fit the needs of the buyer, even at the agreed to price. However, the surrounding area is dominating the impact of how this purchase is turning out.
Cited research shows that as much as 30% of Denver office space is delinquent, which means that the implications will be far more significant than just the Post Building. The purchase by the City was made within the past three years, during the post-pandemic era with remote work already still prominent. This situation did not just happen and be totally unexpected.
There is reportedly court action pending to attempt to resolve the matter, but the bigger question is how things got to this point. When an entity the size of the publishing company of the Denver Post, along with the analysts and brokerage they utilized, either don't see or ignore an important market trend, it shows us all how important doing thorough research is along with due diligence.
Among the things we don't know is whether or not there were any other potential buyers or offers in play for the Building, and how high an initial offer was by the City.
It's not about assigning blame as it is alerting those making buy and sell real estate decisions to more thoroughly investigate prior to going ahead with their purchase or selling. We see what can happen as a result of bad decisions. Those decisions are made even worse when made without having enough information.
We can all learn from this. If you still need a research person or team, let's connect!
https://www.cbsnews.com/colorado/news/broker-warning-denver-post-building/
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