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
Office Buildings | Mar 3, 2021
Turano Baking Company’s new HQ and test kitchen completes in Oak Park, Ill.
Wright Heerema Architects designed the project.
Office Buildings | Feb 26, 2021
KWK Architects repurposes industrial site and warehouse into office space for Washington University School of Medicine
The project’s first two phases have been completed with the third and final phase under way.
Coronavirus | Feb 24, 2021
COVID-19 spurs need for specific building solutions
A medical supply house’s new call center and a vaccination module that can handle more patients faster are among the latest projects.
Market Data | Feb 24, 2021
2021 won’t be a growth year for construction spending, says latest JLL forecast
Predicts second-half improvement toward normalization next year.
Office Buildings | Feb 18, 2021
Bungie breaks ground on new, expanded HQ
NBBJ is designing the project.
Great Solutions | Feb 11, 2021
Simplifying the return to the office
A new web-based tool from Sasaki takes the guesswork out of heading back to the workplace.
Office Buildings | Feb 8, 2021
Walgreens Technology Center of Excellence completes in Chicago’s Old Post Office
Stantec designed the project.
Office Buildings | Feb 8, 2021
Six lessons learned from our first Fitwel Viral Response Module certification
The Fitwel Viral Response Module is one of several frameworks that real estate owners and operators can use to obtain third-party certification for their efforts ensuring their properties are ready for a safer and healthier return to work.
Building Owners | Feb 4, 2021
The Weekly show, Feb 4, 2021: The rise of healthy buildings and human performance
This week on The Weekly show, BD+C editors speak with AEC industry leaders from Brookfield Properties, NBBJ, and UL about healthy buildings certification and improving human performance through research-based design.
Office Buildings | Feb 3, 2021
NBCU News Group unveils new Washington bureau and studios
The project spans six floors and 80,000 sf.
