Apartment demand is soaring at a decade-high level, while office vacancy rates have spiked, and hybrid working-from-home situations are emerging to be the new normal. This has prompted the question of converting vacant office buildings into housing, particularly multifamily rental housing or owner-occupied condominiums. NAR’s latest study―Analysis and Case Studies on Office-to-Housing Conversions― shows a strong potential for conversion of Class B office units in New York, Chicago, Los Angeles, and Boston, but little potential in Washington DC and San Francisco. In 22 markets that have been hit hardest by the pandemic, about 45,000 housing units can be created, or 6% of housing starts.
Read more about economists thoughts’ on office vacancy rates and rent growth in multifamily buildings compared to office buildings indicate a potential for office-to-housing conversions.
Full Article – HERE