A National Bureau of Economic Research working paper from researchers at New York University and Columbia Business School indicates that about 11% of U.S. office buildings may be suitable for conversion to green multifamily properties.
According to a report at Globe St., the researchers created “a set of criteria to identify commercial office properties that are physically suitable for conversion.” The paper also discusses “several policy levers available to federal, state, and local governments that could accelerate the conversion.”
The researchers identified candidates for conversion according to the following criteria:
- Locations in a city with the strongest negative valuation pressures and with strong transportation options
- Buildings constructed before 1990 that tend to be cheaper, have smaller floor plates, and are more charming, increasing conversion appeal
- Class A, B, and C buildings that are underused
- Buildings at least 25,000 sf in size to ensure enough economies of scale
- Buildings with a distance from windows to core of more than 60 feet were excluded
- Eliminated buildings with no or few long-term leases left
The researchers showed an example pro-forma for a 212,500 sf office building that would result in post-conversion rent of $8 per square foot as compared to a $3.50 post-pandemic rent if the property remained as an office building.
Related Stories
Mass Timber | Mar 8, 2022
Heavy timber office and boutique residential building breaks ground in Austin
T3 Eastside, a heavy timber office and boutique residential building, recently broke ground in Austin, Texas.
Performing Arts Centers | Mar 8, 2022
Cincinnati Ballet’s new center embodies the idea that dance is for everyone
Cincinnati Ballet had become a victim of its own success, according to company president and CEO Scott Altman. “We were bursting at the seams in our old building. We had simply outgrown the facility,” Altman told the Cincinnati Enquirer.
Projects | Mar 7, 2022
An Atlanta office promotes employee well-being
For its new Atlanta office, New Relic, a California-based technology company that develops cloud-based software, wanted to keep employee health and wellness at the fore. It also wanted the workspace design to bolster productivity as well as employee engagement and retention.
Projects | Mar 3, 2022
Move, lift, restore: Repurposing a former post office near San Francisco
In mid-February, a construction crew began lifting a 1940s post office building located in Burlingame, Calif., on the San Francisco Peninsula.
Projects | Mar 2, 2022
Manufacturing plant gets second life as a mixed-use development
Wire Park, a mixed-use development being built near Athens, Ga., will feature 130 residential units plus 225,000 square feet of commercial, office, and retail space. About an hour east of downtown Atlanta, the 66-acre development also will boast expansive public greenspace.
Office Buildings | Feb 23, 2022
The Beam on Farmer, Arizona’s first mass timber, multi-story office building tops out
The Beam on Farmer, Arizona’s first mass timber, multi-story office building, topped out on Feb. 10, 2022.
Resiliency | Feb 15, 2022
Design strategies for resilient buildings
LEO A DALY's National Director of Engineering Kim Cowman takes a building-level look at resilient design.
Office Buildings | Feb 1, 2022
Mennica Legacy Tower: GP's latest office complex in Warsaw is uniquely designed
Mennica Legacy Tower marks GP’s first completed project in Poland. The Mennica Legacy Tower was developed by an affiliate of Golub & Company LLC and Mennica Towers GGH MT Sp z o o S.K.A, and delivered in collaboration with Epstein, a design firm with offices in Chicago and Warsaw.
Laboratories | Jan 28, 2022
3 must-know strategies for developers in today’s life sciences industry
While the life sciences industry had been steadily growing, this growth exploded when the pandemic arrived—and there is no indication that this lightning-fast pace will slow down any time soon.
Office Buildings | Jan 26, 2022
BlackRock’s Innovation Hub in Atlanta showcases its global design guidelines
The two-story space harkens to the city’s culture and past.
