Converting office buildings to apartments is cheaper and greener than tearing down old office properties and building new residential buildings.
That may explain why several developers in some large cities have acquired office properties to convert to residential use. It’s a trend that could gain momentum in a post-pandemic environment where vacancies in office towers are on the rise and the prospects for leasing them are not good.
Office towers have advantages for residential conversions. Among them: adequate electricity and plumbing infrastructure, and comfortable ceiling heights for apartments.
Developers in cities including Dallas, Houston, New York, and Salt Lake City have announced office-to-apartment conversions. Most office properties can be converted for residential use, developers say.
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