The Biden Administration recently announced plans to encourage more office buildings to be converted to residential use.
The plan includes using federal money to lend to developers for conversion projects and selling government property that is suitable for conversions. “Office vacancies have reached a 30-year high from coast-to-coast, placing a strain on commercial real estate and local economies,” according to a White House news release. “At the same time, the country has struggled for decades with a shortage of affordable housing units, which is driving up rental costs, and communities are seeking new ways to cut emissions, especially from existing buildings and transportation.”
Some $35 billion is available through the Transportation Infrastructure Finance and Innovation Act (TIFIA) and Railroad Rehabilitation & Improvement Financing (RRIF) programs to finance housing development near transportation, including conversion projects. Conversion projects are eligible for about $10 billion through the Community Development Block Grant fund.
The General Services Administration will sell surplus federal properties that might be appropriate for residential conversions. The Treasury Department is reminding developers, investors, and owners about multifamily construction tax deductions.
Federal agencies have published information to spur conversions. The Department of Energy has a toolkit of technical and financial guidance for using tax deductions and credits that can apply to residential conversions. The White House also published a guidebook for commercial-to-residential conversions, which includes data on federal loan, grant, tax credit, and technical assistance programs for conversions.
Related Stories
Adaptive Reuse | Mar 15, 2024
San Francisco voters approve tax break for office-to-residential conversions
San Francisco voters recently approved a ballot measure to offer tax breaks to developers who convert commercial buildings to residential use. The tax break applies to conversions of up to 5 million sf of commercial space through 2030.
Sustainability | Mar 13, 2024
Trends to watch shaping the future of ESG
Gensler’s Climate Action & Sustainability Services Leaders Anthony Brower, Juliette Morgan, and Kirsten Ritchie discuss trends shaping the future of environmental, social, and governance (ESG).
Adaptive Reuse | Mar 7, 2024
3 key considerations when converting a warehouse to a laboratory
Does your warehouse facility fit the profile for a successful laboratory conversion that can demand higher rents and lower vacancy rates? Here are three important considerations to factor before proceeding.
Urban Planning | Feb 5, 2024
Lessons learned from 70 years of building cities
As Sasaki looks back on 70 years of practice, we’re also looking to the future of cities. While we can’t predict what will be, we do know the needs of cities are as diverse as their scale, climate, economy, governance, and culture.
Adaptive Reuse | Feb 4, 2024
Corporate modernist buildings increasingly popular fodder for adaptive reuse projects
Beginning in the 1970s adaptive reuse projects transformed 19th and early 20th Century buildings into distinctive retail destinations. Increasingly, developers of adaptive reuse projects are targeting outmoded corporate buildings of the 1950s to 1980s.
Luxury Residential | Jan 30, 2024
Lumen Fox Valley mall-to-apartments conversion completes interiors
Architecture and interior design firm Morgante Wilson Architects (MWA) today released photos of its completed interiors work at Lumen Fox Valley, a 304-unit luxury rental community and mall-to-apartments conversion.
Senior Living Design | Jan 24, 2024
Former Walgreens becomes affordable senior living community
Evergreen Real Estate Group has announced the completion of Bellwood Senior Apartments. The 80-unit senior living community at 542 25th Ave. in Bellwood, Ill., provides independent living options for low-income seniors.
Adaptive Reuse | Jan 23, 2024
Adaptive reuse report shows 55K impact of office-to-residential conversions
The latest RentCafe annual Adaptive Reuse report shows that there are 55,300 office-to-residential units in the pipeline as of 2024—four times as much compared to 2021.
Adaptive Reuse | Jan 18, 2024
Coca-Cola packaging warehouse transformed into mixed-use complex
The 250,000-sf structure is located along a now defunct railroad line that forms the footprint for the city’s multi-phase Beltline pedestrian/bike path that will eventually loop around the city.
Adaptive Reuse | Jan 12, 2024
Office-to-residential conversions put pressure on curbside management and parking
With many office and commercial buildings being converted to residential use, two important issues—curbside management and parking—are sometimes not given their due attention. Cities need to assess how vehicle storage, bike and bus lanes, and drop-off zones in front of buildings may need to change because of office-to-residential conversions.
