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 | Sep 17, 2018
TaylorMade Canada HQ includes golf laboratory and product showroom
ZZen Design Build was the general contractor for the project.
Office Buildings | Sep 5, 2018
Facebook’s new Frank Gehry-designed Menlo Park HQ extension includes a massive green roof
Level 10 Construction was the general contractor for the project.
Office Buildings | Aug 27, 2018
The open office isn't dead
The degree of open or enclosed doesn't matter in high-performing work environments. If the space is designed to function well, all individual space types are rated as equally effective.
Office Buildings | Aug 17, 2018
An elliptical office building goes with the flow in Boston
Exterior design cuts waste, saves energy, says Building Team members.
Office Buildings | Aug 14, 2018
Flexibility tops office workers' wish lists, followed by healthcare
A survey of 1,000 office workers in the US and UK found that men value health insurance above any other work perk, whereas women would prefer more flexibility in their office job.
Office Buildings | Aug 13, 2018
There's more to the open office than headlines suggest
A study found that contrary to popular belief, the open office did not encourage—but rather, inhibited—face-to-face communication.
Office Buildings | Jul 31, 2018
Office trends 2018: Campus consolidations bring people together
Companies create community-rich work environments where employees can thrive.
Office Buildings | Jul 25, 2018
New study on occupant comfort advances Saint Gobain’s design approach for renovation and new construction
The building products giant gauges its employees’ perceptions of old and new headquarters environments.
Office Buildings | Jul 18, 2018
A day in the life of an ‘agile worker’
When our Gensler La Crosse office relocated last year, we leveraged the opportunity to support an agile workplace strategy (aka, no assigned seating). Here’s what I’ve experienced firsthand.
Office Buildings | Jul 17, 2018
Transwestern report: Office buildings near transit earn 65% higher lease rates
Analysis of 15 major metros shows the average rent in central business districts was $43.48/sf for transit-accessible buildings versus $26.01/sf for car-dependent buildings.
