Markets with the Most Office-to-Apartment Conversions

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The number of apartments scheduled for conversion from old office spaces more than quadrupled over the past three years, jumping from 12,100 to 55,300, according to a recent study by RentCafe.
Office conversions now represent 38% of the 147,000 apartments in future adaptive reuse projects. The average age of office buildings being transformed into rentals is 72 years, 20 years younger than those previously converted.
Here are the top ten metros with the most planned conversions in the pipeline:
  1. Washington, DC – 5,820
  2. New York, NY – 5,215
  3. Dallas, TX – 3,163
  4. Chicago, IL – 2,822
  5. Los Angeles, CA – 2,442
  6. Cleveland, OH – 2, 012
  7. Cincinnati, OH – 1,563
  8. Kansas City, MO – 1,510
  9. Atlanta, GA – 1,411
  10. Phoenix, AZ – 1,377

Our take
We love this report! As you know, we’re strong proponents of office-to-apartment conversions. The concept just makes total sense to us, especially given that remote and hybrid work is here to stay. We’re mindful that conversions aren’t easy. They also can be difficult and pricey if local governments don’t change their zoning restrictions or provide incentives to developers. Since we need much more housing in this country, we want to continue to see more of this trend.

 

James and David, The Blueprint

February 20, 2024