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
High-rise Construction | May 23, 2017
Goettsch Partners to design three-building Optics Valley Center complex
The Chicago-based firm won a design competition to design the complex located in Wuhan, China.
Office Buildings | Apr 18, 2017
Heineken USA Headquarters redesign emphasizes employee interaction
An open plan with social hubs maximizes co-working and engagement.
Office Buildings | Apr 17, 2017
Vertical integration triggers growth for an L.A.-based office furniture provider
Customization and technology drive sales for Tangram Interiors.
Market Data | Apr 13, 2017
2016’s top 10 states for commercial development
Three new states creep into the top 10 while first and second place remain unchanged.
Office Buildings | Apr 10, 2017
Innovation lab makes developing eye care solutions a collaborative affair
The Shop East innovation lab presents 13,500 sf of workspace across two floors with an emphasis on collaboration.
Mixed-Use | Apr 7, 2017
North Hollywood mixed-use development NoHo West begins construction
The development is expected to open in 2018.
High-rise Construction | Apr 4, 2017
Fifth tallest tower in the world opens in Seoul with the world’s highest glass-bottomed observation deck
Lotte World Tower’s glass-bottomed observation deck allows visitors to stand 1,640 feet above ground and look straight down.
Office Buildings | Apr 4, 2017
Amazon’s newest office building will be an ‘urban treehouse’
The building will provide 405,000 sf of office space in downtown Seattle.
Standards | Mar 29, 2017
Wellness movement is catching on with AEC firms
Hord Caplan Macht the latest to join the club by submitting its offices for certification under Fitwel’s program.
BIM and Information Technology | Mar 28, 2017
Digital tools accelerated the design and renovation of one contractor’s new office building
One shortcut: sending shop drawings created from laser scans directly to a wood panel fabricator.
