Office to residential conversions should be a new focus in the future for real estate pioneers. There are opportunities as far as the eyes can see. Currently, there are roughly 100 conversion projects in the pipeline in the United States through 2023 and now. We will see this trend continue to climb as developers and cities work together for the necessary good.
Office vacancy rates remain high since Covid and conversions to residential can help a significant need. Strategic conversions of obsolete offices can supply the affordable housing shortage. There is a learning curve and an understanding of the complexities of rezoning, repurpose and redesign of an office conversion. It will be a specialty to those who make it their niche. The public sectors as well as private sectors must be creative with robust tax rebates and incentives to stimulate finance and redevelopment opportunities.
As demand grows in conversions of office to multifamily, its success is contingent upon key factors like acquisition costs, interest rates and municipal acceptance. Conditions could not be more favorable for metro cities to be a leader in this space that have experienced the flight of office businesses. The vision of a smart city can be realized with new neighborhoods in an urban core that thrives.