More than 1.2 billion sf of U.S. office space—14.8% of the nation’s total—have strong potential for conversion to residential use, according to real estate software and services firm Yardi.
Yardi’s new Conversion Feasibility Index scores office buildings on their suitability for multifamily conversion. Building scores are based on multiple factors, including building age, location, total square footage, building depth, mid-block location, use type, number of stories, floor plate shape, ceiling height, green-building certifications, walkability, and transit accessibility. Buildings’ scores are then categorized into three tiers, with Tier 1 being the most suitable to conversion.
Although the pool of potential conversions is large, many projects may have a tough time penciling out, Yardi says. To address that issue, local governments have implemented incentive plans for owners.
For example, New York City’s Office Conversion Accelerator, which expedites zoning and permitting processes, has enrolled dozens of buildings so far. Washington, D.C.’s Office-to-Anything Program offers a 15-year tax freeze for eligible projects. Chicago has offered generous subsidies to convert downtown offices into over 1,000 apartments.
Related Stories
Mixed-Use | Dec 6, 2022
Houston developer plans to convert Kevin Roche-designed ConocoPhillips HQ to mixed-use destination
Houston-based Midway, a real estate investment, development, and management firm, plans to redevelop the former ConocoPhillips corporate headquarters site into a mixed-use destination called Watermark District at Woodcreek.
Multifamily Housing | Nov 29, 2022
Number of office-to-apartment conversion projects has jumped since start of pandemic
As remote work rose and demand for office space declined since the start of the Covid-19 pandemic, developers have found converting some offices to residential use to be an attractive option. Apartment conversions rose 25% in the two years since the start of the pandemic, with 28,000 new units converted from other property types, according to a report from RentCafe.
Multifamily Housing | Aug 17, 2022
California strip mall goes multifamily residential
Tiny Tim Plaza started out as a gas station and a dozen or so stores. Now it’s a thriving mixed-use community, minus the gas station.
Urban Planning | Jul 19, 2022
The EV charger station market is appealing to investors and developers, large and small
The latest entry, The StackCharge, is designed to make recharging time seem shorter.
Adaptive Reuse | May 18, 2022
An auto plant in Detroit to get a retread as mixed-use housing
Fisher 21 Lofts could be the largest minority-led redevelopment in the city’s history.
Industrial Facilities | Apr 1, 2022
Robust demand strains industrial space supply
JLL’s latest report finds a shift toward much larger buildings nearer urban centers, which fetch higher rents.
Healthcare Facilities | Mar 25, 2022
Health group converts bank building to drive-thru clinic
Edward-Elmhurst Health and JTS Architects had to get creative when turning an American Chartered Bank into a drive-thru clinic for outpatient testing and vaccinations.
Adaptive Reuse | Dec 16, 2021
An adaptive reuse of a historic building in San Francisco was worth the wait
A five-year-long project included extensive restoration.
Adaptive Reuse | Nov 1, 2021
CallisonRTKL explores converting decommissioned cruise ships for housing
The rapid increase in cruise ship decommissioning during the last 18 months has created a unique opportunity to innovate and adapt these large ships.
Multifamily Housing | Oct 21, 2021
Chicago’s historic Lathrop public housing complex gets new life as mixed-income community
A revitalized New Deal–era public housing community in Chicago brings the Garden City movement of yesteryear into the 21st century.
