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
Office Buildings | Nov 9, 2020
HWKN unveils Bushwick Generator office campus
The building will become a new hub for innovative companies in Brooklyn.
Building Team Awards | Nov 2, 2020
It's back to the future for this contractor
Poettker Construction’s new headquarters in rural Breese, Ill., is recognized with a Bronze Award in BD+C’s 2020 Building Team Awards.
Smart Buildings | Oct 26, 2020
World’s first smart building assessment and rating program released
The SPIRE Smart Building Program will help building owners and operators make better investment decisions, improve tenant satisfaction, and increase asset value.
Office Buildings | Oct 14, 2020
Chicago’s Bank of America Tower completes, opens
Goettsch Partners designed the project.
Office Buildings | Oct 9, 2020
One of the few Class A office buildings in New York’s East Harlem should start construction early next year
Big floor plates will accommodate tenant customization.
Office Buildings | Oct 8, 2020
New Florida office property is designed for a post-Covid-19 world
Chesterfield is developing the project.
Office Buildings | Sep 15, 2020
REI sells new, unused HQ to Facebook
Site developer Wright Runstad & Company and Shorenstein Properties also purchased an undeveloped 2-acre portion of the property.
Office Buildings | Sep 4, 2020
The office building of the future should be an essential part of its community
When the dust settles, the office is going to look and feel like a different place than the one we left in March.
Giants 400 | Aug 28, 2020
2020 Giants 400 Report: Ranking the nation's largest architecture, engineering, and construction firms
The 2020 Giants 400 Report features more than 130 rankings across 25 building sectors and specialty categories.
Coronavirus | Aug 25, 2020
Video: 5 building sectors to watch amid COVID-19
RCLCO's Brad Hunter reveals the winners and non-winners of the U.S. real estate market during the coronavirus pandemic.
