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 | Jan 21, 2016
Nike reveals design, first images of planned 3.2 million-sf expansion to its world headquarters
The expansion looks to combine design elements inspired by human movement, speed, and the strength and energy of competition.
| Jan 14, 2016
How to succeed with EIFS: exterior insulation and finish systems
This AIA CES Discovery course discusses the six elements of an EIFS wall assembly; common EIFS failures and how to prevent them; and EIFS and sustainability.
Office Buildings | Jan 14, 2016
JLL: Slowdown not expected for office market
The booming sector had an occupancy growth rate 1.3 times that of new supply in the fourth quarter of 2015.
Office Buildings | Jan 11, 2016
Spec for tech: Designing for the creative class
The new work environment, settings which blur the line between work and life, is inspired by cities and the attributes that all great urban environments share, writes Ben Tranel of Gensler.
Office Buildings | Jan 6, 2016
4 tips for creating flow in a multi-level workspace
Successful workplaces enable a clear progression of ideas and people, which can be challenging for workplaces that occupy multiple levels. Perkins+Will's Sarah Stanford found some strategies that have proven successful.
Office Buildings | Dec 23, 2015
Good design alone won’t eradicate mindless meetings
Gensler's Johnathan Sandler discusses efficient alternatives to dull, wasteful workplace meetings.
Office Buildings | Dec 17, 2015
John Buck Company to develop CNA’s Chicago headquarters
The 35-story building will have plenty of column-free space.
Office Buildings | Dec 9, 2015
HOK collaborates with IFMA on new workplace strategy research report
Report cites work-life balance as the top reason for implementing “distributed work” strategies.
Greenbuild Report | Dec 8, 2015
Is ‘green’ still a selling point in the office sector?
Some developers are missing an opportunity by downplaying sustainability at a time when demand for such features is palpable among lessee firms who are trying to attract younger workers.
Energy Efficiency | Nov 16, 2015
Amazon will heat its new Seattle campus with waste heat from next-door data centers
Up to 4 million kilowatt-hours of energy will be saved each year.