Cities in Washington State will offer tax breaks for office-to-residential conversions

A law passed earlier this year by the Washington State Legislature allows developers to defer sales and use taxes if they convert existing structures, including office buildings, into affordable housing.

The law passed almost unanimously in the legislature. The state’s Department of Revenue has said that it expects to have preliminary guidance for local jurisdictions in August. Cities could launch a tax deferment program for conversions after that.

Cities and towns will be able to issue their own resolutions for sales and use tax deferrals, but they will have to follow the guidance from the Department of Revenue. To receive a deferral, a project must consist of multifamily housing units with at least 10% considered affordable, and a project must be located on what the city considers underutilized commercial property.

If a project retains those qualifications for at least 10 years, owners would not have to repay sales and use taxes. City councils in Seattle and Spokane have already indicated support for the new law.

A project to convert an underperforming mid-century office tower in Long Beach, Calif., created badly needed market rate housing with a significantly lowered carbon footprint. The adaptive reuse project, composed of 203,177 sf including parking, created 106 apartment units out of a Class B office building that had been vacant for about 10 years.

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Invest in existing buildings for your university

According to Nick Sillies of GBBN, students are increasingly asking: "How sustainable is your institution?" Reusing existing buildings may help answer that.

Government Buildings | Jan 9, 2023

Blackstone, Starwood among real estate giants urging President Biden to repurpose unused federal office space for housing

The Real Estate Roundtable, a group including major real estate firms such as Brookfield Properties, Blackstone, Empire State Realty Trust, Starwood Capital, as well as multiple major banks and CRE professional organizations, recently sent a letter to President Joe Biden on the implications of remote work within the federal government.

Adaptive Reuse | Dec 21, 2022

University of Pittsburgh reinvents century-old Model-T building as a life sciences research facility

After opening earlier this year, The Assembly recently achieved LEED Gold certification, aligning with the school’s and community’s larger sustainability efforts.

Adaptive reuse office interior modern design

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While new construction allows for incredible levels of customization, there’s no denying that new buildings can have adverse impacts on the climate, budgets, schedules and even the cultural and historic fabrics of communities.

Watermark District at WoodCreek_ Rendering Courtesy of Midway_0.jpg

Mixed-Use | Dec 6, 2022

Houston developer plans to convert Kevin Roche-designed ConocoPhillips HQ to mixed-use destination

Houston-based Midway, a real estate investment, development, and management firm, plans to redevelop the former ConocoPhillips corporate headquarters site into a mixed-use destination called Watermark District at Woodcreek.

Multifamily Housing | Nov 29, 2022

Number of office-to-apartment conversion projects has jumped since start of pandemic

As remote work rose and demand for office space declined since the start of the Covid-19 pandemic, developers have found converting some offices to residential use to be an attractive option. Apartment conversions rose 25% in the two years since the start of the pandemic, with 28,000 new units converted from other property types, according to a report from RentCafe.