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
| Mar 1, 2012
Reconstruction of L.A.’s Dunbar Hotel underway
Withee Malcolm Architects’ designs for the project include the complete renovation of the Dunbar Hotel and the Somerville Apartments I and II.
| Feb 15, 2012
NAHB sees gradual improvement in multifamily sales for boomers
However, since the conditions of the current overall housing market are limiting their ability to sell their existing homes, this market is not recovering as quickly as might have been expected.
| Feb 10, 2012
Atlanta Housing Authority taps Johnson Controls to improve public housing efficiency
Energy-efficiency program to improve 13 senior residential care facilities and save nearly $18 million.
| Feb 8, 2012
Nauset completes addition and renovation for Winchester senior living community
Theater, library, fitness center, and bistro enhance facility.
| Jan 3, 2012
Rental Renaissance, The Rebirth of the Apartment Market
Across much of the U.S., apartment rents are rising, vacancy rates are falling. In just about every major urban area, new multifamily rental projects and major renovations are coming online. It may be too soon to pronounce the rental market fully recovered, but the trend is promising.
| Dec 27, 2011
Ground broken for adaptive reuse project
Located on the Garden State Parkway, the master-planned project initially includes the conversion of a 114-year-old, 365,000-square-foot, six-story warehouse building into 361 loft-style apartments, and the creation of a three-level parking facility.
| Dec 12, 2011
Mojo Stumer takes top honors at AIA Long Island Design Awards
Firm's TriBeCa Loft wins "Archi" for interior design.
| Dec 5, 2011
Gables Residential brings mixed-use building to Houston's Tanglewood area
The design integrates a detailed brick and masonry facade, acknowledging the soft pastel color palette of the surrounding Mediterranean heritage of Tanglewood.
| Dec 2, 2011
What are you waiting for? BD+C's 2012 40 Under 40 nominations are due Friday, Jan. 20
Nominate a colleague, peer, or even yourself. Applications available here.
| Dec 2, 2011
Goody Clancy awarded Ohio State residential project
The project, which is focused on developing a vibrant on-campus community of learning for OSU undergraduates.