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
Wood | Feb 5, 2018
The largest timber office building in the U.S. will anchor Newark, N.J. mixed-use development
Michael Green Architecture is designing the building.
Green | Jan 30, 2018
Welcome to the Jungle: Amazon’s Spheres have opened to employees and the public
The Spheres provide the most unique aspect of Amazon’s downtown Seattle headquarters.
Reconstruction & Renovation | Jan 23, 2018
New co-working space will focus on serving local, African-American youth in Miami
The new space has been dubbed ‘Tribe.’
Office Buildings | Jan 18, 2018
At the ready: spec suites make hard-to-rent office space more attractive
Filling a need for startups looking for quick move-ins.
Office Buildings | Jan 18, 2018
*UPDATED* Amazon narrows list of possible HQ2 locations down to 20 cities
The company expects to invest over $5 billion in construction and grow HQ2 to include as many as 50,000 jobs.
Office Buildings | Jan 3, 2018
Activating the workplace
Here's how active work stations impact how you think, perform, and feel.
Office Buildings | Dec 19, 2017
How do we measure human performance, and what does it mean for the workplace?
There are many new tools and methods that are beginning to look more comprehensively to evaluate organizational well-being.
Office Buildings | Dec 15, 2017
How environmental graphics can inspire culture and creativity in the workplace
Once you secure outstanding talent, how do you keep the creative juices flowing and help employees feel more connected to their company’s culture?
Office Buildings | Dec 14, 2017
San Francisco’s first WELL v1 Certified project has been completed
The space emphasizes WELL’s vital concepts of air, water, nourishment, light, fitness, comfort, and mind within the workplace.
Mixed-Use | Dec 12, 2017
A new live/work neighborhood is about to get under way in Omaha, Neb.
Walkability and recreation will be key features of West Farm.
