Denver Among Nation’s Best Markets for Value-Add Acquisitions

Denver Among Nation's Best Markets for Value-Add Acquisitions
Mile High CRE
August 21, 2025
By Mile High CRE Staff

While national headlines continue to declare the death of office, Denver may be poised for a
significant real estate rebound. Real Capital Solutions (RCS), a Louisville-based firm and one of
the nation's largest private real estate investment companies, says Denver is entering the sweet
spot for office acquisitions, positioning disciplined investors for some of the strongest returns of
the next cycle.
"This is actually the least risky time to buy," said Marcel Arsenault, chairman and CEO of Real
Capital Solutions. "The highest risk is at the top of the cycle, when office assets are overvalued.
Now, we're buying Class A assets with a high margin of safety, when values have already
bottomed. Adding value by winning the leasing wars will be the foundation of the next cycle's
rise."
At its August Investor Summit, RCS presented analysis showing:

• Office delinquencies now exceed Global Financial Crisis levels, signaling lenders
  are being forced to shed assets at steep discounts.
• The prime buying window is 2025-2027, when values are well below replacement
  cost and competition is limited.
• Return-to-office is reshaping Denver's demand profile. Hybrid and on-site work
  dominate again, with companies upgrading to Class A space to attract and retain
  employees.
• Other asset classesremain risky. Apartments are priced to perfection with slowing
  rent growth, and retail faces weakening consumption, leaving office as the
  contrarian, but highest-upside, sector.

Though AI is still an emerging technology with uncertain impacts, research
indicates job losses in office employment will be largely offset by new roles, with
high value office employment continuing to expand.

RCS is actively acquiring high quality office buildings across major U.S. cities, with Denver a top
target. The firm currently has over $1 billion in offers out in markets including Denver, Chicago,
Washington, D.C. and Dallas. Its strategy focuses on repositioning buildings through aggressive
leasing programs, spec suite buildouts and high-quality amenities that match what tenants
demand today.
Arsenault emphasized that while office can be acquired within a margin of safety, where
downside risk is limited and upside potential is strongest, other assets such as apartments are
still priced to perfection, the zone RCS has coined as the "Margin of Risk."
"Our philosophy has always been simple: Be patient and disciplined. Buy when values have
crashed, pile in when risk is low and returns are high and then add value using our deep
experience. That's how we win the leasing wars, and it's why we believe office is the play of the
decade, especially here in Denver," said Arsenault.