This year, a record-breaking number of office-to-residential conversions are scheduled for redevelopment. The latest RentCafe annual Adaptive Reuse report shows that there are 55,300 units in the pipeline as of 2024—four times as much compared to 2021.
Office building conversions represent 38% of the 147,000 residential adaptive reuse projects. This makes up the largest share with hotel-to-res following at 24 percent, factory conversions at 13 percent, and healthcare buildings at 6 percent.
The office buildings being picked for conversion are, on average, 72 years old (20 years younger than many of the ones previously converted). This suggests a preference for newer buildings that require less refurbishment and investment to meet modern standards.
Where are the most office-to-res conversions taking place? According to the report, Washington, D.C., is the leading metropolitan area with 5,820 units slated for conversion starting this year. New York, N.Y., follows closely behind at 5,215 units, and Dallas, Texas, takes third place with 3,163 units.
The top 10 metros for office-to-res conversions in 2024
1. Washington, D.C.
5,820 units under conversion for office-to-residential (year-over-year increase of 88%).
2. New York, N.Y.
5,215 units under conversion for office-to-residential (year-over-year increase of 18%).
3. Dallas, Texas
3,163 units under conversion for office-to-residential (year-over-year increase of 58%).
4. Chicago, Ill.
2,822 units under conversion for office-to-residential (year-over-year increase of -9%).
5. Los Angeles, Calif.
2,442 units under conversion for office-to-residential (year-over-year increase of 6%).
6. Cleveland, Ohio
2,012 units under conversion for office-to-residential (year-over-year increase of -10%).
7. Cincinnati, Ohio
1,563 units under conversion for office-to-residential (year-over-year increase of -6%).
8. Kansas City, Mo.
1,510 units under conversion for office-to-residential (year-over-year increase of 84%).
9. Atlanta, Ga.
1,422 units under conversion for office-to-residential (year-over-year increase of 40%).
10. Phoenix, Ariz.
1,377 units under conversion for office-to-residential (year-over-year increase of 114%).
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