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Originally Posted by laniroj
What am I missing here? Lots are redeveloping every 20 years? Where? China?Mars? Hell, depreciation is 39.5 years so if the useful lifespan of a building is only 20 years all property owners are getting hosed!
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Real estate development does not strictly follow MACRS accounting principles. Just off the top of my head...
1. The restaurants at 7th and Grant - how recently were those gut renovated?
2. First gen (RENT-era) "urban living" townhomes throughout LoHi and Uptown routinely get demo'd for land assembly and ultimately big boxes.
3. The Golden Triangle no longer resembles a neighborhood from any one era because it's been redeveloped cyclically.
4. Everything on Speer gets demolished every 20-30 years throughout history.
5. Cherry Creek Whole Foods, and encompassing block, is about to be demolished well before the 30 year mark. I think the City participated in building that Clayton garage like 10 years ago?
6. Breweries throughout RiNo are being torn down just 10 years after being gut reno'd from shell condition.
What you're missing is that a site's potential HBU (highest & best use) frequently dwarfs what is currently there even with depreciation tricks and high-end tenants. In fact, you viewing Denver development through the lens of sitting on a property for 39.5 years to maximize the depreciation schedule, explains the rest of what you've said.
Development pressure here isn't yet as abusive in say, Houston (or Dallas) where a row of new slot homes got demo'd before anyone even moved in, for Trammell Crow (also one of the usual suspects here in Denver) to tear them all down for a 730-unit complex.
https://www.texasmonthly.com/article...l-estate-boom/
"It was on the eastern edge of this neighborhood that I saw one of the most classically Houston real estate business phenomena ever. Not far from Yale Street and adjacent to a large vacant lot, a small-time developer bought and knocked down a few old bungalows and replaced them with a line of town houses. Before anyone moved in, Trammell Crow Residential bought and demolished them to make way for one of two upscale mid-rise apartment complexes now sprawling over the site. The 730 new units added to the already-cramped neighborhood—the city has done little or nothing to alleviate traffic on increasingly overburdened Yale Street—are renting for between $1,500 a month, for a 630-square-foot one-bedroom, and $2,860, for a plush two-bedroom."
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We are a long way off from a balanced medium of planning and adequate housing supply. The nature of government is to grow, thus why planning is such a hard thing to get right. All of the places that folks want to save and love the most, including all those lovely historic things you speak of, were developed BEFORE rigorous, burdensome, prescriptive zoning standards. What are people so afraid of? The current system is not working nor is it even close to working - there is ample evidence of that. We are building less interesting places and projects and segregating uses more intricately since zoning came about and it seems to me EVERYONE thinks that what is happening now is not better than what happened 100 years ago.
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It's not very novel to say something has changed for the worst, coinciding with an expansion in government. What's changed isn't the size of government or extent of urban planning, but rather the advanced-stage commodification of real estate. I'm not saying "housing as a commodity" is good or bad, but it's undeniable. There is a very sophisticated commercial real estate industry here in Denver that just does things differently than in Denver of old.
We've had highly-prescriptive city plans before. In fact, Denver is one of the best examples of the "City Beautiful" movement. Those prescriptive plans required less bureaucracy to implement than permitting some out-of-state REIT's (who will eventually sue everyone who touches their transaction) latest $150 million boxy beast. Gee I wonder why.
I abhor that "City Beautiful" coincided with redlining and abject racism in housing, but today we have an opportunity to achieve similar progressive advancements with an added focus on racial equity.
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In general, I do not think most on here or the general public understand just how prescriptive zoning and design standards have become. Setbacks, height, road width, life/safety access, parking requirements and stall sizes, mandatory turn radius for a hook and ladder truck to fight a single family home fire, building opening %'s, build-to requirements, etc etc the list goes on. ALL of these (often overlapping) standards and requirements are contributing to and helping create boring and homogeneous development. Could many developers step up and do a better job, absolutely there is no debate on that, but don't for one second think that the more requirements and prescriptive standards will produce more interesting places - that will not work.
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I disagree that the problem with development is setbacks, road width, life safety, fire department access, etc. Call me old fashioned, but I'd say those are all good things.
I agree that parking minimums should be eliminated city-wide. I still happen to believe that handicap spaces and other stall "attributes" (not just size) should be regulated.
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Example: I'd love to go out a build a food truck court adjacent to one of my projects and in fact have tried to do so. It's not possible in the City of Denver (unless of course the City does it on public property where they don't have to follow all of their own standards). Plus those food trucks can't be within 500 feet from an existing restaurant - so basically no where in the center city with a zoning that would accommodate restaurant use. The devil is always in the details and so much of our discussion on here is high level. The folks executing these projects and administering this zoning are dealing with hundreds of pages of standards and details, all of which effectively limit what can and cannot be done. if you don't believe me, start reading the neighborhood plans, station area plans, zoning code, building code and amendments, green codes and programs, etc...
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Maybe we don't need a food truck court. It's not a great use of space, aside from Friday nights when it's busy.