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 | Aug 27, 2018
5 noteworthy multifamily projects: summer 2018 edition
The 5 buildings highlight MFDC's summer issue noteworthy projects section.
Multifamily Housing | Aug 20, 2018
$53 million Chamberlain apartments will comprise six buildings, three new and three renovated
The project’s groundbreaking was held on July 19.
Multifamily Housing | Aug 17, 2018
Sound advice on multifamily construction
Four leading experts tell how to ensure your next multifamily project achieves acoustic privacy.
Multifamily Housing | Aug 15, 2018
Memphis construction: Can this city become the next Austin?
One local design firm is trying to make it happen.
Multifamily Housing | Aug 8, 2018
Flyin' high: Humphreys & Partners Architects keeps soaring to new heights
HPA, which reported $78.2 million in multifamily design fees in 2017, ranks as the nation’s largest multifamily design firm.
Multifamily Housing | Aug 7, 2018
Even after redevelopment, the iconic 'Chicago Tribune' sign will remain at 435 N. Michigan Ave.
The newspaper and the building's new owners reached a settlement.
Multifamily Housing | Aug 2, 2018
The recipe for bicycle kitchens
Bike storage and workshop spaces are rapidly turning into full-service social amenity spaces in multifamily projects.
Multifamily Housing | Aug 2, 2018
Bicycle kitchens give cyclists their very own amenity space
Bike storage and workshop spaces are rapidly turning into full-service social amenity spaces in multifamily projects.
Multifamily Housing | Jul 31, 2018
Put air rights to better use
If your school district is building a new school, build housing in the air space above it and put lower-paid public employees at the front of the line to live there.
Multifamily Housing | Jul 25, 2018
Multifamily market trends 2018: Demographic shifts reshape the residential landscape
Changing generational preferences are prompting multifamily developers to re-strategize.