Lawmakers around the country are looking for ways to spur conversions of office space to residential use.
Such projects come with challenges such as inadequate plumbing, not enough exterior-facing windows, and footprints that don’t easily lend themselves to residential use. These conditions raise the cost for developers.
Some states are trying to make office-to-housing conversions more attractive options for those willing to invest in them. Remedies include waiving development impact fees, introducing tax incentives, and streamlining zoning changes to spur conversions.
With the national office vacancy rate at 17.1%, close to a 30-year high, and much higher in some locations, officials see an opportunity to revitalize downtowns by adding badly needed housing through conversions. That goal is resulting in targeted legislation.
One example: a Democratic legislator in Oregon is proposing a bill that would require local governments to waive most impact fees to reduce the cost of conversions. Impact fees typically go toward water, sewer, and transportation infrastructure. This shows that some lawmakers support office-to-residential conversions strongly enough to sacrifice impact fee income.
Related Stories
Multifamily Housing | Sep 16, 2020
8 (more) noteworthy multifamily projects to debut in 2020
An office-to-apartment conversion in Clearwater, Fla., and a modular affordable housing community in Portland, Ore., highlight the latest multifamily developments to open this year.
Multifamily Housing | Sep 14, 2020
McShane Construction begins work on Gilbert, Ariz., multifamily development
Continental Properties is the project owner.
Multifamily Housing | Sep 10, 2020
COVID-19: How are you doing?
Multifamily seems to be one sector in the construction industry that’s holding its own during the pandemic.
Multifamily Housing | Sep 10, 2020
EV charging webinar to feature experts from Bozzuto, Irvine Company, and RCLCO - Wed., 9-16
EV charging webinar (9/16) to feature Bozzuto Development, The Irvine Company, RCLCO, and ChargePoint
Multifamily Housing | Sep 2, 2020
8 noteworthy multifamily projects to debut in 2020
Brooklyn's latest mega-development, Denizen Bushwick, and Related California’s apartment tower in San Francisco are among the notable multifamily projects to debut in the first half of 2020.
Multifamily Housing | Sep 2, 2020
New affordable housing in the Bronx is designed for both seniors and teens
Body Lawson Associates designed the project.
Giants 400 | Aug 28, 2020
2020 Giants 400 Report: Ranking the nation's largest architecture, engineering, and construction firms
The 2020 Giants 400 Report features more than 130 rankings across 25 building sectors and specialty categories.
Sponsored | | Aug 26, 2020
Healthy air systems have become the new “standard equipment.”
As home buyers demand healthy air systems, builders look to differentiate themselves with a “Healthy Home Builder” designation.
Coronavirus | Aug 25, 2020
Video: 5 building sectors to watch amid COVID-19
RCLCO's Brad Hunter reveals the winners and non-winners of the U.S. real estate market during the coronavirus pandemic.
Multifamily Housing | Aug 24, 2020
Portland’s zoning reform looks to boost the ‘missing middle’ of housing
The city council in Portland, Ore., recently approved the “Residential Infill Project” (RIP), a package of amendments to the city’s zoning code that legalizes up to four homes on nearly any residential lot and sharply limits building sizes.
