A National Bureau of Economic Research working paper from researchers at New York University and Columbia Business School indicates that about 11% of U.S. office buildings may be suitable for conversion to green multifamily properties.
According to a report at Globe St., the researchers created “a set of criteria to identify commercial office properties that are physically suitable for conversion.” The paper also discusses “several policy levers available to federal, state, and local governments that could accelerate the conversion.”
The researchers identified candidates for conversion according to the following criteria:
- Locations in a city with the strongest negative valuation pressures and with strong transportation options
- Buildings constructed before 1990 that tend to be cheaper, have smaller floor plates, and are more charming, increasing conversion appeal
- Class A, B, and C buildings that are underused
- Buildings at least 25,000 sf in size to ensure enough economies of scale
- Buildings with a distance from windows to core of more than 60 feet were excluded
- Eliminated buildings with no or few long-term leases left
The researchers showed an example pro-forma for a 212,500 sf office building that would result in post-conversion rent of $8 per square foot as compared to a $3.50 post-pandemic rent if the property remained as an office building.
Related Stories
| Jan 31, 2013
More cities requiring large buildings to use EPA’s energy management and reporting
In 2012, Philadelphia joined several other U.S. cities in passing a requirement that large buildings use Portfolio Manager, the Environmental Protection Agency’s energy management tool, to measure and report energy performance.
| Jan 29, 2013
Astellas' New Headquarters for the Americas Earns LEED Gold Certification
The new headquarters for Astellas in the Americas in Northbrook, Ill., has been awarded LEED Gold certification by the USGBC.
| Jan 16, 2013
SOM’s innovative Zhengzhou Greenland Plaza opens
The 2.59-million-square-feet building houses a mixed-use program of offices on its lower floors and a 416-room hotel.
| Dec 9, 2012
The owner’s perspective: high-rise buildings
Douglas Durst on the practicalities of development: “You must think about a building from the inside out.”
| Nov 28, 2012
Project team to showcase design for first mixed-use retail center of its kind in Mexico City
Project reaching construction milestone, offering national model for urban development in Mexico.
| Nov 6, 2012
Goettsch Partners designs new tower in Shunde, China
200-meter-tall building will be located between Guangzhou and Hong Kong.
| Nov 1, 2012
Greenbuild 2012 Report: Green Architecture Firms
Design firms deliver gold, platinum, even net-zero projects
| Oct 17, 2012
Denver office building makes use of single-component wall system for retrofit
The Building Team selected Centria's Formawall Dimension Series to help achieve the retrofit project's goals of improved aesthetics, sustainability, and energy efficiency.
| Oct 10, 2012
Foster + Partners to Design New 425 Park Avenue Tower
Conceptual designs submitted by Foster, Hadid, Koolhaas and Rogers to be on exhibit during Municipal Art Society’s Annual Symposium