Study: Office Conversions One-Third More Affordable Than New Housing

Where conditions are right for office-to-residential adaptive reuse, projects can be completed faster and at a significantly lower cost than new construction.

1 minute read

November 21, 2023, 12:00 PM PST

By Diana Ionescu @aworkoffiction


White round pillars in empty office building with windows across all walls and white floors and ceiling.

Astro-0/KOTO / Adobe Stock

A study from Gensler reveals that converting office buildings to housing could cost 30 percent less than new construction—where conversion is feasible. As Nish Amarnath explains in Smart Cities Dive, “Gensler said U.S. office vacancies reached a 30-year high in the second quarter of 2023, according to the Council of Economic Advisers,” prompting a strong interest in the adaptive reuse of office buildings.

According to the study, 25 percent of the over 1,000 buildings and sites surveyed met the criteria for conversion. “Factors including building form, location and floor plate size helped Gensler determine a building’s suitability for adaptive reuse into housing. Gensler notes that ‘unpleasant’ office features, like low ceilings, can be translated into desirable attributes for a residential building by removing office ducts, lights and drop ceilings to make way for ‘luxurious’ 11-foot clear ceiling heights.”

An adaptive reuse initiative in Calgary is expected to yield an increase in residential units of 24 percent in that city’s downtown core. Meanwhile, the U.S. federal government announced a $350 million investment to support office conversions and adjusted regulations to make office conversion easier for local governments.

Tuesday, November 21, 2023 in Smart Cities Dive

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Paved walking path next to canal in The Woodlands, Texas with office buildings in background.

Retro-silient?: America’s First “Eco-burb,” The Woodlands Turns 50

A master-planned community north of Houston offers lessons on green infrastructure and resilient design, but falls short of its founder’s lofty affordability and walkability goals.

February 19, 2025 - Greg Flisram

Painted bike lane with bike symbol and diamond on street in downtown Toronto, Ontario.

A Troubling Trend of Backlash to Bike Lanes

Some cities are going so far as to rip out protected bike infrastructure that took years of advocacy to build.

February 19, 2025 - Momentum Magazine

Cars on a New York City street

USDOT Revokes Approval for NYC Congestion Pricing

Despite the administration’s stated concern for the “working class,” 85 percent of Manhattan commuters use public transit to enter the city.

February 20, 2025 - StreetsBlog NYC

View of downtown Los Angeles at dusk with Echo Park lake and palm trees in foreground.

Parks for All: LA Looks to Residents to Help Shape Park Equity and Access

Los Angeles is launching a citywide park needs assessment to gather resident input on improving its park system, addressing inequities in access, and making the case for increased funding and long-term investments.

March 2 - Ethnic Media Services

Blurred black and white image of bicycle laying down in road with orange traffic cone in foreground.

Trump Administration Takes Aim at Transportation Research

Researchers warn of a “chilling environment” as studies examining road safety and other topics are killed off and layoffs hit federal agencies.

March 2 - Bloomberg News

View of Los Angeles skyline at sunrise with yellow and green trees in foreground

LA’s Trees Absorb More Carbon Than Expected, But Can’t Do It Alone

A USC study finds that Los Angeles’ urban trees absorb more carbon than expected, but while they provide crucial environmental benefits, they cannot replace the urgent need for systemic emissions reductions.

February 28 - Phys.org

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.