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
Government Buildings | Nov 25, 2020
New Indiana Toll Road headquarters creates unified environment for staff
New LEED Gold facility consolidates operations for tollway authority.
Smart Buildings | Nov 20, 2020
The Weekly show: SPIRE smart building rating system, and pickleball court design tips
The November 19 episode of BD+C's The Weekly is available for viewing on demand.
Office Buildings | Nov 17, 2020
Former elementary school becomes modern office space in North Charleston
The Middleton Group is designing the project.
Government Buildings | Nov 13, 2020
Tax shortfalls nip government projects in the bud
Federal contracts are proceeding, but states and cities are delaying, deferring, and looking for private investment.
AEC Tech | Nov 12, 2020
The Weekly show: Nvidia's Omniverse, AI for construction scheduling, COVID-19 signage
BD+C editors speak with experts from ALICE Technologies, Build Group, Hastings Architecture, Nvidia, and Woods Bagot on the November 12 episode of "The Weekly." The episode is available for viewing on demand.
Office Buildings | Nov 9, 2020
HWKN unveils Bushwick Generator office campus
The building will become a new hub for innovative companies in Brooklyn.
Building Team Awards | Nov 2, 2020
It's back to the future for this contractor
Poettker Construction’s new headquarters in rural Breese, Ill., is recognized with a Bronze Award in BD+C’s 2020 Building Team Awards.
Smart Buildings | Oct 26, 2020
World’s first smart building assessment and rating program released
The SPIRE Smart Building Program will help building owners and operators make better investment decisions, improve tenant satisfaction, and increase asset value.
Office Buildings | Oct 14, 2020
Chicago’s Bank of America Tower completes, opens
Goettsch Partners designed the project.
Office Buildings | Oct 9, 2020
One of the few Class A office buildings in New York’s East Harlem should start construction early next year
Big floor plates will accommodate tenant customization.