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. These buildings were built before 1990 with floor sizes below 15,000 sf, making them good candidates for conversion. Such properties are better suited for converting to apartments or condominiums than buildings with larger floor plans that are harder to divide into living spaces.
New York City, the largest U.S. office market at 975 million sf, has the most older buildings available at 1,698, according to Avison Young. Los Angeles is second with 1,212 and Chicago comes in third with 1,030.
The volume of conversions has risen considerably since 2016. A CBRE report last December showed 85 conversions underway this year, double those completed last year. In 2016, the there were 24 conversions.
Converting old office buildings to other uses has gained momentum since the Covid pandemic struck. Office utilization is at an average of 50% across major cities, according to a recent study by security technology firm Kastle Systems.
If that level of use persists, there will be more pressure to convert older offices, which generally operate less sustainably than new properties built to more stringent energy codes, for other purposes.
Related Stories
Multifamily Housing | Apr 19, 2023
Austin’s historic Rainey Street welcomes a new neighbor: a 48-story mixed-used residential tower
Austin’s historic Rainey Street is welcoming a new neighbor. The Paseo, a 48-story mixed-used residential tower, will bring 557 apartments and two levels of retail to the popular Austin entertainment district, known for houses that have been converted into bungalow bars and restaurants.
Multifamily Housing | Apr 17, 2023
World's largest multifamily building pursuing ILFI Zero Carbon certification under construction in Washington, D.C.
The Douglass, in Washington, D.C.’s Ward 8, is currently the largest multifamily housing project to pursue Zero Carbon Certification from the International Living Future Institute (ILFI).
Sponsored | Multifamily Housing | Apr 12, 2023
With affordability and innovation for all: Multifamily housing ideas break barriers
With a growing need for multifamily housing solutions at all income levels, the U.S. market is seeing a proliferation of inventive projects. Alongside the creativity is a nascent move toward higher quality, if not always larger unit sizes, with offerings of better amenities both inside and outside today’s latest residential solutions.
Urban Planning | Apr 12, 2023
Watch: Trends in urban design for 2023, with James Corner Field Operations
Isabel Castilla, a Principal Designer with the landscape architecture firm James Corner Field Operations, discusses recent changes in clients' priorities about urban design, with a focus on her firm's recent projects.
Market Data | Apr 11, 2023
Construction crane count reaches all-time high in Q1 2023
Toronto, Seattle, Los Angeles, and Denver top the list of U.S/Canadian cities with the greatest number of fixed cranes on construction sites, according to Rider Levett Bucknall's RLB Crane Index for North America for Q1 2023.
Contractors | Apr 10, 2023
What makes prefabrication work? Factors every construction project should consider
There are many factors requiring careful consideration when determining whether a project is a good fit for prefabrication. JE Dunn’s Brian Burkett breaks down the most important considerations.
Affordable Housing | Apr 7, 2023
Florida’s affordable housing law expected to fuel multifamily residential projects
Florida Gov. Ron DeSantis recently signed into law affordable housing legislation that includes $711 million for housing programs and tax breaks for developers. The new law will supersede local governments’ zoning, density, and height requirements.
Multifamily Housing | Apr 4, 2023
Acing your multifamily housing amenities for the modern renter
Eighty-seven percent of residents consider amenities when signing or renewing a lease. Here are three essential amenity areas to focus on, according to market research and trends.
Resiliency | Apr 4, 2023
New bill would limit housing sprawl in fire- and flood-prone areas of California
A new bill in the California Assembly would limit housing sprawl in fire- and flood-prone areas across the state. For the last several decades, new housing has spread to more remote areas of the Golden State.
Multifamily Housing | Mar 31, 2023
EV charging stations in multifamily housing
Ryan Gram, PE, EV Charging Practice Leader at engineering firm Kimley-Horn, provides expert advice about the "business side" of installing EV charging stations in apartment and mixed-use communities. Gram speaks with BD+C Executive Editor Robert Cassidy.
