Office-to-residential conversions tick upward in July 2026
Office-to-residential conversions are increasing in 2026, driven by declining vacancy rates and attractive development opportunities, with a record 11.8 million sf completed or underway in 2025.
View of Cordova Street in downtown Vancouver during summer with buildings and vehicles. Vancouver, BC, Canada – July 19, 2026: Cordova Street in downtown Vancouver on a summer day. Tall buildings frame the street while cars and taxis are parked along the sides. The sky is clear and blue, adding a bright backdrop to the urban view. People can be seen walking along the sidewalks as they enjoy the warm weather
National vacancy rates have slowly begun to decline, but they still remained elevated at 17.7% in June.
"Projects are increasingly available to developers willing to hunt for bargains that offset the costs associated with converting a building," the report states.
In 2025, office-to-residential conversions reached a record 11.8 million sf completed or under construction, surpassing every previous year. Yardi’s Conversion Feasibility Index also identified nearly two billion sf of office space as viable candidates for conversion. Of that total, 4.6% was classified as Tier I—the most suitable for immediate conversion—while 18.8% fell into Tier II, indicating strong potential with some modifications required.
Quinn Purcell is the Managing Editor for Building Design+Construction. Covering the building industry for over four years, he has contributed to several award-winning industry reports, physical/digital magazines, and online news coverage. Quinn delivers content ranging from multifamily housing, technology, sustainability, and more.
For BD+C, Quinn runs the brand's 40 Under 40 program, covers product updates monthly, manages a blog partnership with over 50 AEC firms, and writes daily analytic-driven content for the website.
