There’s a national housing shortage, both market rate and affordable housing. At the same time there’s a large supply of empty office space and underutilized—and closed—hotels across the country. Owners and developers are increasingly examining the viability of commercial to residential conversions as a solution to both problems.
Hotels and office buildings present distinctly different factors to consider when evaluating the feasibility of potential residential conversion opportunities.
Issues with Hotel-to-Residential Conversions
Hotels have a distinct floorplan compared to office buildings that makes hotel-to-residential conversion more practical and less costly. Systems such as water and waste lines are already in place and can usually be relatively simple to modify them in converting a hotel building to apartments units. As a result, a hotel conversion project can be completed faster and at a lower cost than converting an office building to residential.
Hotel conversions are not without challenges. “While some underutilized hotels are located in city centers, other potential conversion candidates are in less desirable locations next to airports or off major highways far from residential communities—factors that can suppress the value and appeal of residential conversions,” said Chris Walker, Planning and Community Development Project Manager, Aufgang Architects.
These issues can be of less concern in converting hotels to affordable or supportive housing rather than market rate.
RELATED: Massachusetts launches program to spur office-to-residential conversions statewide
Walker was on the Aufgang team that designed the residential conversion of the 36 year old former JFK Airport Hilton Hotel in Queens, the first hotel-to-residential conversion in NYC.
The shuttered 350-key hotel was converted to the new Baisley Pond Park Residences, a 100% affordable, 318-unit multifamily building offering supportive services to low-income and formerly homeless families and individuals. The Baisley Pond Park Residences was developed by Slate Property Group and the nonprofit RiseBoro Community Partnership.
Issues with Office-to-Residential Conversions
Office buildings are usually located in city centers where many people work, with close access to public transportation, increasing their appeal as residential units, thus making them attractive to developers for conversion.
However, office-to-residential conversions often present design challenges that can be costly to address. Office buildings, despite large windows not commonly used in residential design, usually have deep footprints which deprive interior spaces of access to sunlight and outside air.
This can be overcome through innovative design, such as creating an open core or atrium through the height of the building. Also, elevators, stairways and systems such as water risers are usually centrally located in the cores of office buildings, requiring adding risers and lines to each new apartment unit, which increases conversion costs and lengthens construction time.
About Aufgang Architects
Established in 1971 Aufgang Architects is a certified New York City and New York State Minority Business Enterprise. In the past 22 years the firm has designed and consulted on more than 20 million sf of built space, including over 14,000 units of affordable housing.
Related Stories
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.
Mixed-Use | Jan 29, 2024
12 U.S. markets where entertainment districts are under consideration or construction
The Pomp, a 223-acre district located 10 miles north of Fort Lauderdale, Fla., and The Armory, a 225,000-sf dining and entertainment venue on six acres in St Louis, are among the top entertainment districts in the works across the U.S.
Apartments | Jan 26, 2024
New apartment supply: Top 5 metros delivering in 2024
Nationally, the total new apartment supply amounts to around 1.4 million units—well exceeding the apartment development historical average of 980,000 units.
Self-Storage Facilities | Jan 25, 2024
One-quarter of self-storage renters are Millennials
Interest in self-storage has increased in over 75% of the top metros according to the latest StorageCafe survey of self-storage preferences. Today, Millennials make up 25% of all self-storage renters.
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.
Modular Building | Jan 19, 2024
Virginia is first state to adopt ICC/MBI offsite construction standards
Virginia recently became the first state to adopt International Code Council/Modular Building Institute off-site construction standards.
Mixed-Use | Jan 19, 2024
Trademark secures financing to develop Fort Worth multifamily community
National real estate developer, investor, and operator, Trademark Property Company, has closed on the land and secured the financing for The Vickery, a multifamily-led mixed-use community located on five acres at W. Vickery Boulevard and Hemphill Street overlooking Downtown Fort Worth.
Affordable Housing | Jan 18, 2024
Habitat tops off second apartment building at 43 Green
The co-developers of 43 Green celebrate the latest milestone for the $100 million, mixed-income, mixed-use project in Bronzeville: topping off Phase 2 while reaching full lease-up of the Phase 1 apartment building.
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.