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
| May 24, 2018
Accelerate Live! talk: Security and the built environment: Insights from an embassy designer
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), embassy designer Tom Jacobs explores ways that provide the needed protection while keeping intact the representational and inspirational qualities of a design.
Office Buildings | May 22, 2018
AAA headquarters embodies a road trip atmosphere
HGA designed the space.
Office Buildings | May 22, 2018
Where fun follows function: New study reemphasizes the value of play in the workplace
Perkins Eastman recommends personalization, access and “linkages,” and variety as design criteria.
Office Buildings | Apr 25, 2018
Cardiff is home to the new BBC Cymru Wales headquarters
Foster + Partners designed the building.
Office Buildings | Apr 23, 2018
Activity-based design takes precedence in new office projects
The latest report by Ted Moudis Associates also finds more space being allocated for amenities and wellness.
Office Buildings | Apr 19, 2018
From fitness to bowling alleys: How commercial office buildings are differentiating themselves through amenities
Here are five ways that amenities can help developers and building owners attract and secure tenants by appealing to their inhabitants.
Office Buildings | Mar 21, 2018
Yeti’s new global headquarters evokes the outdoors
Gensler designed the new HQ.
Office Buildings | Mar 19, 2018
A cost guide to office fit-outs provides comparisons for 59 markets
The new JLL report also finds landlords offering more generous tenant improvement allowances.
Movers+Shapers | Mar 19, 2018
Movers + Shapers: Tech takeover
From Chicago to Charlotte, the tech boom is transforming urban real estate markets and redefining workplace design.
Office Buildings | Mar 19, 2018
The new office has roots in retail
How retail’s focus on brand authenticity, heritage and education are transforming workplace design.