The adaptive reuse of office buildings for residential and other uses will grow by as much as 63 percent in 2024 over last year.

Office conversion projects in the United States are expected to increase by 63 percent in 2024 over 2023, according to real estate services company CBRE.
Writing in Smart Cities Dive, Nish Amarnath notes that 73 adaptive reuse projects are already completed, while 30 more are expected to be finished by the end of the year. “Office-to-multifamily housing projects account for nearly 75% of the conversion pipeline in Q3, up from 63% in the first quarter, per the report.” In some cases, conversion can cost up to 30 percent less than new construction.
The growth comes as the demand for office space continues to lag far below pre-pandemic levels in most cities and the housing crisis rages on. At the same time, cities and states are adjusting regulations to encourage adaptive reuse and make conversions easier and more cost-effective.
The report adds that office-to-multifamily conversion projects have created 28,000 housing units since 2016. “The growing conversion activity is anticipated to reshape business-centric districts into dynamic mixed-use neighborhoods, the firm says.”
While not all office buildings are appropriate for residential conversion, some are also being transformed into life sciences facilities, hotels, and other types of uses.
FULL STORY: US office conversions could be up 63% in 2024 as cities remove barriers, real estate company says

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