Learn more about NAIOP Colorado's efforts to advance public policy that protects and encourages responsible, sustainable development that creates jobs and benefits the communities in which our members work and live. 

Energize Denver and Building Performance Update

By Kathie Barstnar, NAIOP

The Energize Denver Performance Requirements updated regulations were adopted on November 17, 2022, originally passed by City Council on November 21, 2021. The ordinance establishes energy use intensity (EUI) targets for commercial and multifamily buildings 25,000 square feet and larger, prescriptive measures for buildings 5,000-25,000 sq. ft., and electrification updates to building code over time. The purpose of these new requirements is to push buildings towards net zero emissions by 2040 through increased energy efficiency, electrification, and renewable energy adoption. 

Energize Denver is launching a new website with technical guidance, resources, and vendor training videos for the performance requirements in December. New compliance notices with building’ performance targets will be mailed/emailed in early January 2023.  

The Energize Denver team is hosting a 2-part webinar series in December to delve into the technical details of the performance requirements: 

• Register for Part 1 on December 7 from 12 – 1:30 p.m. MT on background of the ordinance, equity considerations, setting 2030 targets, target adjustments, an electrification credit, and the renewables credit. 

• Register for Part 2 on December 15, 12:00 – 1:30pm MT on alternate compliance options and their minimum requirements, performance evaluation, and penalty assessments. Updates on manufacturing, agricultural, and industrial buildings, and the small building prescriptive requirements.

Please visit the Energize Denver Hub for more information. If you require further assistance, please contact the Hub at (844)-536-4528 or at [email protected]  

March 2022 Public Policy Update - Energize Denver Building Energy Performance Requirement

By Brie Martin, Director of Property Management, Prime West Real Estate Services, LLC

Since the adoption of the Energize Denver Building Energy Performance Requirement, I’ve spent a lot of time explaining to clients the details of the initiative, what it means to building owners, and how we can plan for it over the next 5-10 years. The ordinance defines Net Zero Energy as highly energy efficient, all electric, provider of demand flexibility to the grid, and powered by renewable electricity. This really means two things for building owners: site EUI (Energy Use Intensity) reduction and electrification of space and water heating systems.

The ordinance establishes requirements for all buildings in the City of Denver over 5,000 square feet, which is important to note as smaller buildings had previously been exempted from various ordinances. The purpose of this ordinance is to push towards net zero emissions by 2040, therefore requiring all buildings to do their part. The first main target year is 2030, with the goal to reach 30% energy savings across all large buildings in the City of Denver. An essential component to this 30% reduction is the phased in approach of partial electrification to space and water heating systems by 2027. The ordinance does allow building owners to request an alternate timeline as long as the same end goals are maintained.

The City of Denver will provide guided assistance to support both aspects of this ordinance. One support mechanism is a resource component on their website that will be added sometime during 2022. This resource will include a performance portal, how-to-guide, checklists, education, and financial assistance, among other components. The second mechanism is working alongside city building code and permitting to help incentivize replacement of equipment within the timeline specified through the ordinance.

The first step for all building owners is to understand the 2030 target EUI for building type, site EUI for the specific asset, useful life of space and water heating systems, and if all lighting is or has been converted to LED. The next step is to compile a 5-10 year compliance or maintenance program for their asset. 

Most building budgets are created in the third quarter of the preceding year, therefore waiting for the resource hub to be complete may create a tricky timing obstacle. Gathering as much information about your building over the next year will help to determine when and how capital money should be spent. 

The 2030 target EUI for building type (buildings 25,000 sq ft and higher) can be found on the Energize Denver Hub website. As an example, buildings deemed to be office have a 2030 EUI target of 48.3. Keep in mind that interim targets for 2024 and 2027 will be building specific and mailed out to owners in March 2022. A building’s site EUI can be found on the Energy Star Portfolio Manager. This will help building owners and property managers to create realistic timelines for each asset. As owners and property managers await the interim target guidelines, it is important to begin the process (if one does not already exist) of understanding what mechanical components in your building are not electrified and when their useful life expires. It would also be beneficial to complete a simple ASHRAE Level 1 Energy Audit which can run around $5,000 or more depending on the size of your asset. If no equipment is reaching the end of their useful life over the next 8 years, other means of achieving the target site EUI will need to be completed. An ASHRAE audit will help to compile possible energy saving components, which include high level energy saving estimates and costs.

Buildings 5,000 sq ft - 25,000 sq ft have a simpler method to contribute to the cause, although all buildings are required to partially electrify space and water heating systems upon system replacement. They must either install all LED lights or install solar panels. The smaller the building, the longer the building owner will have to comply, with the last year being the interim target of 2027. If an owner chooses to go the route of an LED upgrade, one item that will need to be considered is whether the current fixtures are LED bulb compatible or if upgrading to LED fixtures will be the route that needs to be taken. 

The City of Denver and the Task Force is continually learning from the process and will re-evaluate alternative compliance options, technological advancements, targets and timelines as we move throughout this process.  As items are re-evaluated, it is important to lean on local resources to stay in the loop.  The Office of Climate Action, Sustainability and Resiliency (CASR) is staffing up to implement these programs.  If you have questions before the help center is up and running, don’t hesitate to reach out to Sharon Jaye, CASR Energize Denver Policy Manager ([email protected]) or Daniel Rayner, CASR Buildings Policy Outreach Administrator ([email protected]). 

NAIOP Colorado continues to monitor the rules and regulations as they are developed and adjusted to ensure they meet the direction of the Energize Denver Task Force to include flexibility and options to help us all move from aspiration to implementation.

March 2022 Public Policy Update - NAIOP Advocating for Greater Flexibility on Denver’s Affordable Housing Proposal 

By Caitlin Quander, Partner at Brownstein Hyatt Farber Schreck

As you may be aware, the City & County of Denver is in the process of adopting new regulations intended to create more affordable housing options and increasing funding for Denver’s Affordable Housing Fund. The proposal, which is also known as Expanding Housing Affordability (EHA), focuses on two main areas: 

• Requiring new residential development of 10 units or more to designate between 8% and 12% of the units as affordable, regardless of whether the home is for rent or for sale. In higher-cost areas of the city, such as downtown, developers would need to provide 2% to 3% more affordable units. 
• Gradually increasing the “linkage fee,” which is a fee on development used to build and preserve affordable housing for people with lower incomes. Projects providing affordable housing are not subject to linkage fees. 

Over the past year, NAIOP has been working diligently on your behalf to provide data-driven, pragmatic feedback on the draft proposal. Because of our advocacy efforts, city staff has already made the following changes: 

• Phasing in linkage fee increases over a three-year period to allow the market to adapt. The original proposal would have applied the 200%-900% linkage fee increases shortly after the ordinance is approved. 
• Cut the linkage fee increases nearly in half for all industrial development. 
• Exempted ground floor retail from all linkage fees. 

In order to be grandfathered under the current linkage fees and requirements, projects must meet the following milestones under Site Development Plan (SDP) review: 

• Concept SDP submitted by June 30, 2022; AND
• Final SDP approved by August 30, 2023 (14-month window)

This 14-month window is based on median review times for concept and final SDP approvals. Based on other peer cities and as we are already seeing in Denver, SDP submittals have increased and thus review times are likely to follow suit. Therefore, NAIOP is working hard to advocate on your behalf for flexibility for projects that are moving through the review process in good faith. 

Over the next few months, City Council and the Mayor need to hear directly from you too! Please consider calling or emailing your City Council representative and the Mayor’s staff on this important issue.   

Click HERE to contact City Council members.

Contact the Mayor’s Office by reaching out to his staff: Analiese Hock ([email protected]) and Brad Weinig ([email protected])  

It’s important to note that our industry is committed to being a part of the affordable housing solution in Denver, but will not overlook the importance of limiting the potential unintended consequences still imbedded within the proposal. The city will continue to take in feedback between now and anticipated adoption of the proposal in June of 2022.  

Have questions or feedback, please contact Caitlin Quander at [email protected]. 

January 2022 Public Policy Update 

By Erin Goff, Principal at Husch Blackwell Strategies

August 2021 Public Policy Update 

By Kathie Barstnar, Executive Director, NAIOP Colorado

The Colorado General Assembly adjourned on June 8 after 116 days. This session has been described as one of the most controversial in recent memory and many in the business community believe the impacts will be felt for many years. Click Here for a recap of all the bills that NAIOP worked on in 2021.  A couple of the key bills were:

1. HB21-1286 Energy-Use Benchmarking and Performance Standards for Buildings: This is one of the bills on which NAIOP Colorado secured a significant victory. At the beginning of the session it appeared that this bill would sail through as drafted. As introduced it would have required owners of buildings 50,000 sf or greater all across the state to benchmark their energy usage AND reduce such energy use by 15% by 2026 with additional reductions being designated by the Air Quality Control Commission (AQCC) every five years until 2040. Additionally, it would have required severe penalties for non-compliance including a $.02 per sf per day fine until compliance is achieved. NAIOP, along with a wide coalition of other building related organizations opposed this bill as overreaching and too aggressive. After significant testimony in opposition and a threat by the House Republicans to filibuster the bill, sponsors met with our industry representatives and an agreement to pivot the bill to a task force was forged. The task force will meet and determine ways to bridge the gap from the aspirational goals to implementable actions with a statewide reduction of 15% by 2026 and setting up a plan for future task force input to the AQCC. NAIOP Colorado has been given a designated position on the task force. Stay tuned for updates as the Task Force starts to meet later this year.
2. HB21-1117 Local Government Authority to Promote Affordable Housing Units. This bill authorizes local government to require construction of affordable housing within their boundaries without being in violation of the state statute prohibiting rent control by exempting local government land use regulations that restrict rents on newly constructed or redeveloped housing units. NAIOP opposed this bill unless amended to provide guard rails on what local governments could implement. A qualification was added stating that “the (local) regulation provides a choice of options to the property owner or land developer and creates one or more alternatives to construction of new affordable housing units on the building site.” It was signed by the Governor and now local governments are considering what policies to implement. Our efforts now switch to working with county and municipal governments as they consider different ordinances with affordable housing requirements.

The City and County of Denver has been very active on several fronts including affordable housing and energy efficiency along with ballot initiative submissions in anticipation of the fall elections of 2021 and 2022. Here are some updates:

1. Energize Denver Task Force: As an outcome of the recently completed Climate Action Task Force 2020 Recommendations Report the Energize Denver Task Force has been meeting the past 8 months to develop a plan to reduce energy use in commercial buildings to meet the 2030 and 2040. Kathie Barstnar has represented NAIOP Colorado on this Task Force. The final meeting of the task force is set for August 19 after which their proposed report will be presented to the Denver City Council. Here is a link to the latest draft report published on July 29, 2021. As soon as the updated report is available, we will make sure you have access to it and will request your participation during its process through the City Council and Regulatory drafting process.
2. Denver Expanding Housing Affordability: In line with above report on HB21-1117, the City of Denver is undertaking a public process to involve: 1) Citywide zoning incentive for affordable housing; 2) increase to the City’s linkage fee; 3) requiring affordable housing as part of developments. For more information, please visit the City and County of Denver's Expanding Housing Affordability website.  Please consider sharing your feedback to the City about what you want to see in affordability or sign up to participate and attend an upcoming industry focus group. Click Here for more details. 

For more information regarding the Chapter's Public Policy efforts, please reach out to Public Policy Chair Caitlin Quander or NAIOP Executive Director Kathie Barstnar.

NAIOP Colorado 2022 Fight Night – Real Estate Ringers Feature: Ryan "Marsh Madness" Marsh

September 28, 2022
Submitted by Courtney Schneider, Hines

The energy at NAIOP Colorado’s Fight Night is nothing short of palpable, and this year will be no exception – there will be four Real Estate Ringer bouts this year that will not disappoint.  While I am biased in my predictions for at least one of the fights, Hines is thrilled to have our very own Ryan “Marsh Madness” Marsh as a Real Estate Ringer this year!  

Courtney Schneider: Have you always been an athlete?
Ryan Marsh: I had never done anything athletic until age 25 when I met my wife, Caitlin.  Caitlin got me into working out and it became something I enjoyed.  Learning to box for Fight Night is a sporting competition I never had in high school.  
Actually, I guess I was briefly a high school athlete if you consider my short stint on the golf team – that is, until I got kicked off for smoking cigs on the golf course.  I am still friends with my coach to this day, though, so there aren’t any hard feelings.  


Courtney Schneider: Tell me about the training you are going through to prepare for the big fight.
Ryan Marsh: The biggest thing for me is being part of the boxing culture.  This is something you would never get exposure to otherwise.  It is a culture and community of hardworking, dedicated athletes.  Some of the training techniques aren’t necessarily enjoyable, but you have to trust the process.  Huge shout out to Prodigy Boxing Gym!


Courtney Schneider: What will be your motivation in the ring?
Ryan Marsh: [Laughs] The ego of not getting the sh*% kicked out of me in front of friends, family and the real estate community!  I have been mentally preparing myself for the past year since you’re peer pressured me into “volunteering” for this.  But I also have too big of an ego to say no – something I am working on.  


Courtney Schneider: You mention the mental prep, what has been the toughest part mentally or personally in preparing?
Ryan Marsh: The time away from my family – my wife and two young boys.  Huge shout out to my wife, Caitlin, for all the sacrifices she has made to accommodate the training schedule.  And for putting up with my constant jabbering and hype for the actual bout.  October 6th can’t come fast enough for her. 


Courtney Schneider: Anything else you want out there?  
Ryan Marsh: Shout out to Chris Crawford for making my employment at Hines contingent on winning[!] 

NAIOP Real Estate Ringer Perspectives: James McGill Reflects on 2021 Win

August 4, 2022
Submitted by Vincent Malara, Heritage Title Company

We sat down with James McGill, Vice President of Industrial Services with JLL, who was one of the “Real Estate Ringer” winners at NAIOP Fight Night 2021 – NAIOP Colorado’s annual black-tie boxing event featuring boxers from metro Denver’s local real estate industry – to learn what his experience was like as our 2022 Real Estate Ringers prepare to jump in the ring on October 6th!

Vincent Malara: Did you have any previous boxing experience?
James McGill: This was my first time in a boxing ring, I grew up super competitive and played hockey, golf, lacrosse, and baseball. I was excited to add boxing to the list!

Vincent Malara: Why did you decide to fight?
James McGill: After attending my first Fight Night as spectator and helping sell raffle tickets I was blown away by the event and super inspired to take on such a tough physical and mental challenge with the added pressure of NAIOP and CRE Industry in attendance. At the time a national brokerage hadn’t put a fighter in the ring and I was excited to be the first to represent JLL.

As a newer broker I also saw it as opportunity to get my name out in front of the industry, all while raising money for at risk youth in Colorado. But my main reason was to take on the challenge headfirst and prove to myself and everyone else of my hard work and dedication in everything I set my mind too.

Vincent Malara: What did your training look like leading into the fight!
James McGill: It was crazy!!!! It was the most humbling experience! I worked out with the Rivera Family at their training facility, which was out of their garage. It felt like a movie. We trained Monday-Friday and sparred every Tuesday and Thursday night. Training included an insane amount of cardio and core work. To put things in perspective , I broke my nose during the training if that can help illustrate the intensity.

Vincent Malara: What was the highlight of the fight?
James McGill: When the fight was called and I jumped up on the ring and saw my whole family, the JLL crew, and all my mentors in the crowd rally around me. It was truly an unbelievable feeling and one of the best nights of my life. It was exactly how I had envisioned it and this experience made me a big believer in the power of manifestation.

Vincent Malara: Has your participation as a Real Estate Ringer helped advance your career in commercial real estate? If so, how?
James McGill: I can't think of a specific deal that has come of it but it has certainly gotten my name out there and given me some exposure to people in the industry. I have met a lot of people through NAIOP and it typically comes up in conversation etc.

Vincent Malara: If you had the opportunity to do it all over again, would you? If yes, why?
James McGill: Yes. It was an awesome night and a great challenge. I also enjoy training for something or putting my mind to something and getting it done. In addition, whenever I have the opportunity to raise money for a good cause I am in! I am happy I don’t have to get hit in the face again, that wasn’t too fun.

For more information regarding Fight Night 2022, please CLICK HERE. 

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