Roughly one in three office buildings in the largest U.S. cities are well suited to be converted to multifamily residential properties, according to a study by global real estate firm Avison Young.
Some 6,206 buildings across 10 U.S. cities present viable opportunities for conversion to residential use. These buildings were built before 1990 with floor sizes below 15,000 sf, making them good candidates for conversion. Such properties are better suited for converting to apartments or condominiums than buildings with larger floor plans that are harder to divide into living spaces.
New York City, the largest U.S. office market at 975 million sf, has the most older buildings available at 1,698, according to Avison Young. Los Angeles is second with 1,212 and Chicago comes in third with 1,030.
The volume of conversions has risen considerably since 2016. A CBRE report last December showed 85 conversions underway this year, double those completed last year. In 2016, the there were 24 conversions.
Converting old office buildings to other uses has gained momentum since the Covid pandemic struck. Office utilization is at an average of 50% across major cities, according to a recent study by security technology firm Kastle Systems.
If that level of use persists, there will be more pressure to convert older offices, which generally operate less sustainably than new properties built to more stringent energy codes, for other purposes.
Related Stories
| Sep 16, 2013
Study analyzes effectiveness of reflective ceilings
Engineers at Brinjac quantify the illuminance and energy consumption levels achieved by increasing the ceiling’s light reflectance.
Smart Buildings | Sep 13, 2013
Chicago latest U.S. city to mandate building energy benchmarking
The Windy City is the latest U.S. city to enact legislation that mandates building energy benchmarking and disclosure for owners of large commercial and residential buildings.
| Sep 13, 2013
Chicago latest U.S. city to mandate building energy benchmarking
The Windy City is the latest U.S. city to enact legislation that mandates building energy benchmarking and disclosure for owners of large commercial and residential buildings.
| Sep 13, 2013
Video: Arup offers tour of world's first algae-powered building
Dubbed BIQ house, the building features a bright green façade consisting of hollow glass panels filled with algae and water.
| Sep 11, 2013
BUILDINGChicago eShow Daily – Day 3 coverage
Day 3 coverage of the BUILDINGChicago/Greening the Heartland conference and expo, taking place this week at the Holiday Inn Chicago Mart Plaza.
| Sep 10, 2013
BUILDINGChicago eShow Daily – Day 2 coverage
The BD+C editorial team brings you this real-time coverage of day 2 of the BUILDINGChicago/Greening the Heartland conference and expo taking place this week at the Holiday Inn Chicago Mart Plaza.
| Sep 4, 2013
Smart building technology: Talking results at the BUILDINGChicago/ Greening the Heartland show
Recent advancements in technology are allowing owners to connect with facilities as never before, leveraging existing automation systems to achieve cost-effective energy improvements. This BUILDINGChicago presentation will feature Procter & Gamble’s smart building management program.
| Sep 3, 2013
Delinquency rate for commercial real estate loans at lowest level in three years
The delinquency rate for US commercial real estate loans in CMBS dropped for the third straight month to 8.38%. This represents a 10-basis-point drop since July's reading and a 175-basis-point improvement from a year ago.
| Aug 26, 2013
What you missed last week: Architecture billings up again; record year for hotel renovations; nation's most expensive real estate markets
BD+C's roundup of the top construction market news for the week of August 18 includes the latest architecture billings index from AIA and a BOMA study on the nation's most and least expensive commercial real estate markets.
| Aug 23, 2013
Mack Urban, West Coast real estate and development firm, formed from intercompany collaboration
Urban Partners, LLC, Harbor Urban, LLC, and Mack Real Estate Group, three leading full service real estate firms known for high quality urban infill development, today announced the formation of Mack Urban, LLC, a premier West Coast real estate investment and development company.
