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 13, 2015
SOM-designed Broadgate Exchange House wins Twenty-five Year Award
Exchange House, an elegant 10-story office building that spans over the merging tracks of London’s Liverpool Street Station, is located in London’s Broadgate Development.
| Jan 9, 2015
10 surprising lessons Perkins+Will has learned about workplace projects
P+W's Janice Barnes shares some of most unexpected lessons from her firm's work on office design projects, including the importance of post-occupancy evaluations and having a cohesive transition strategy for workers.
| Jan 9, 2015
Technology and media tenants, not financial companies, fill up One World Trade Center
The financial sector has almost no presence in the new tower, with creative and media companies, such as magazine publisher Conde Nast, dominating the vast majority of leased space.
| Jan 8, 2015
The future of alternative work spaces: open-access markets, co-working, and in-between spaces
During the past five years, people have begun to actively seek out third places not just to get a day’s work done, but to develop businesses of a new kind and establish themselves as part of a real-time conversation of diverse entrepreneurs, writes Gensler's Shawn Gehle.
Smart Buildings | Jan 7, 2015
Best practices for urban infill development: Embrace the region's character, master the pedestrian experience
If an urban building isn’t grounded in the local region’s character, it will end up feeling generic and out-of-place. To do urban infill the right way, it’s essential to slow down and pay proper attention to the context of an urban environment, writes GS&P's Joe Bucher.
| Jan 6, 2015
Construction permits exceeded $2 billion in Minneapolis in 2014
Two major projects—a new stadium for the Minnesota Vikings NFL team and the city’s Downtown East redevelopment—accounted for about half of the total worth of the permits issued.
| Jan 2, 2015
Construction put in place enjoyed healthy gains in 2014
Construction consultant FMI foresees—with some caveats—continuing growth in the office, lodging, and manufacturing sectors. But funding uncertainties raise red flags in education and healthcare.
| Dec 28, 2014
Robots, drones, and printed buildings: The promise of automated construction
Building Teams across the globe are employing advanced robotics to simplify what is inherently a complex, messy process—construction.
| Dec 28, 2014
AIA course: Enhancing interior comfort while improving overall building efficacy
Providing more comfortable conditions to building occupants has become a top priority in today’s interior designs. This course is worth 1.0 AIA LU/HSW.
| Dec 28, 2014
10 key design interventions for a healthier, happier, and more productive workplace
Numerous studies and mountains of evidence confirm what common sense has long suggested: healthy, happier workers are more productive, more likely to collaborate with colleagues, and more likely to innovate in ways that benefit the bottom line, writes Gensler's Kirsten Ritchie.
