The number of adaptive reuse projects in the pipeline grew to a record 122,000 in 2023 from 77,000 registered last year, according to RentCafe’s annual Adaptive Reuse Report.
Of the 122,000 apartments currently undergoing conversion, 45,000 are the result of office repurposing, representing 37% of the total, followed by hotels (23% of future projects). Factories come in third place with 14% of the total.
In a significant development, former hotels experienced a record-breaking 2,954 new apartments resulting from conversion, a five-year high. This building type’s easier, more straightforward transformation path likely spurred a 43% increase in 2022 compared to 2021.
At the local level, Los Angeles leads the pack with 4,566 apartments expected to be created through conversion. New York City (3,987 apartments) and Chicago (3,519 apartments) rank second and third.
In 2022, the number of office conversions completed dropped by 15%, but interest in those projects remains high, and their number could rebound this year.
“Office-to-multifamily conversions target smaller, older properties, yielding limited sector effects,” says Doug Ressler, senior analyst and manager, Business Intelligence, Yardi Matrix. “Based on the latest research by CBRE, the conversion of office spaces into multifamily units will primarily be restricted to smaller, older office properties due to factors such as construction costs and regulations related to residential construction.”
Related Stories
Multifamily Housing | Feb 27, 2018
Victorian era gasholders become modern residences in London
The new residences are part of the King’s Cross redevelopment scheme.
Education Facilities | Jan 8, 2018
Three former school buildings are repurposed to create mini-campus for teacher education
The $25.3 million project is currently under construction on the Winona State University campus.
Adaptive Reuse | Jan 4, 2018
Student housing development on Chapman University campus includes adaptive reuse of 1918 packing house
The Packing House was originally built for the Santiago Orange Growers Association.
Adaptive Reuse | Dec 11, 2017
Detroit's economic improvement a boon to its hotel sector
Detroit Foundation, a stylish boutique hotel, is the Motor City’s newest hospitality venue.
Adaptive Reuse | Nov 29, 2017
‘Eat-ertainment’ establishment grants abandoned air traffic control building a second life
The concept’s design reflects the golden age of flight.
Adaptive Reuse | Nov 10, 2017
Austin’s first indoor shopping mall becomes Austin Community College’s new digital media center
Renovation of the defunct mall represents Phase 2 of ACC’s $100 million adaptive reuse project.
Adaptive Reuse | Oct 23, 2017
A tableware storage space is reset to accommodate an investment firm’s headquarters in Raleigh, N.C.
This adaptive reuse establishes more direct visual and physical connections to a growing city.
Adaptive Reuse | Oct 5, 2017
Wexford’s latest innovation center breaks ground in Providence
The campus is expected to include an Aloft hotel.
Office Buildings | Jun 13, 2017
WeWork takes on a construction management app provider
Fieldlens helps turn jobsites into social networks.
Office Buildings | Mar 27, 2017
New York warehouse to become an office mixing industrial and modern aesthetics
The building is located in West Chelsea between the High Line and West Street.