Office to Residential Conversions: A Win-Win for Both Sides
The concept of adaptive reuse and apartment conversions is hardly new, but the number of conversions happening has increased, particularly among newer buildings constructed after World War II. The trend has also spread beyond Lower Manhattan, among the first places where factories and warehouses in cast-iron buildings became artists’ lofts in the 1960s and ’70s, especially after New York City legalized loft living in 1971.
Architect Charles F. Bloszies, FAIA, says the vacancy rate in San Francisco where he lives and works is now 40%, a historic high. As leases expire, he expects more offices to empty. “Conversion is the way to go to help owners avoid having to give their properties back to banks,” he says.
The period between 2019 and 2020 became a peak time for the process, followed by a slowdown in 2022. It’s now expected to pick up momentum again, according to RentCafe.