The number of adaptive reuse projects in the pipeline grew to a record 122,000 in 2023 from 77,000 registered last year, according to RentCafe’s annual Adaptive Reuse Report.
Of the 122,000 apartments currently undergoing conversion, 45,000 are the result of office repurposing, representing 37% of the total, followed by hotels (23% of future projects). Factories come in third place with 14% of the total.
In a significant development, former hotels experienced a record-breaking 2,954 new apartments resulting from conversion, a five-year high. This building type’s easier, more straightforward transformation path likely spurred a 43% increase in 2022 compared to 2021.
At the local level, Los Angeles leads the pack with 4,566 apartments expected to be created through conversion. New York City (3,987 apartments) and Chicago (3,519 apartments) rank second and third.
In 2022, the number of office conversions completed dropped by 15%, but interest in those projects remains high, and their number could rebound this year.
“Office-to-multifamily conversions target smaller, older properties, yielding limited sector effects,” says Doug Ressler, senior analyst and manager, Business Intelligence, Yardi Matrix. “Based on the latest research by CBRE, the conversion of office spaces into multifamily units will primarily be restricted to smaller, older office properties due to factors such as construction costs and regulations related to residential construction.”
Related Stories
Urban Planning | Jul 26, 2023
America’s first 100% electric city shows the potential of government-industry alignment
Ithaca has turned heads with the start of its latest venture: Fully decarbonize and electrify the city by 2030.
Multifamily Housing | Jul 25, 2023
San Francisco seeks proposals for adaptive reuse of underutilized downtown office buildings
The City of San Francisco released a Request For Interest to identify office building conversions that city officials could help expedite with zoning changes, regulatory measures, and financial incentives.
Sustainability | Jul 13, 2023
Deep green retrofits: Updating old buildings to new sustainability standards
HOK’s David Weatherhead and Atenor’s Eoin Conroy discuss the challenges and opportunities of refurbishing old buildings to meet modern-day sustainability standards.
Multifamily Housing | Jul 11, 2023
Converting downtown office into multifamily residential: Let’s stop and think about this
Is the office-to-residential conversion really what’s best for our downtowns from a cultural, urban, economic perspective? Or is this silver bullet really a poison pill?
Adaptive Reuse | Jul 10, 2023
California updates building code for adaptive reuse of office, retail structures for housing
The California Building Standards Commission recently voted to make it easier to convert commercial properties to residential use. The commission adopted provisions of the International Existing Building Code (IEBC) that allow developers more flexibility for adaptive reuse of retail and office structures.
Adaptive Reuse | Jul 6, 2023
The responsibility of adapting historic university buildings
Shepley Bulfinch's David Whitehill, AIA, believes the adaptive reuse of historic university buildings is not a matter of sentimentality but of practicality, progress, and preservation.
Multifamily Housing | Jun 19, 2023
Adaptive reuse: 5 benefits of office-to-residential conversions
FitzGerald completed renovations on Millennium on LaSalle, a 14-story building in the heart of Chicago’s Loop. Originally built in 1902, the former office building now comprises 211 apartment units and marks LaSalle Street’s first complete office-to-residential conversion.
Multifamily Housing | May 23, 2023
One out of three office buildings in largest U.S. cities are suitable for residential conversion
Roughly one in three office buildings in the largest U.S. cities are well suited to be converted to multifamily residential properties, according to a study by global real estate firm Avison Young. Some 6,206 buildings across 10 U.S. cities present viable opportunities for conversion to residential use.
Multifamily Housing | May 16, 2023
Legislators aim to make office-to-housing conversions easier
Lawmakers around the country are looking for ways to spur conversions of office space to residential use.cSuch projects come with challenges such as inadequate plumbing, not enough exterior-facing windows, and footprints that don’t easily lend themselves to residential use. These conditions raise the cost for developers.
Sustainability | May 11, 2023
Let's build toward a circular economy
Eric Corey Freed, Director of Sustainability, CannonDesign, discusses the values of well-designed, regenerative buildings.
