Office-to-Residential Conversions Are Booming — And They’re Fixing Two Crises at Once

When the pandemic emptied our downtowns, few imagined that housing would emerge as the unlikely savior of office towers.

Today, across U.S. cities, outdated office buildings are being reborn as apartments—and the results are staggering.

Explained in 30 Seconds

Office vacancy rates in many cities have surpassed 20%.

At the same time, the U.S. faces a shortage of millions of housing units. Conversion projects offer a creative answer:

Adaptive reuse cuts construction time and waste, turning empty towers into modern homes.
Cities are loosening zoning rules, speeding approvals, and incentivizing conversion investments with tax abatements and grants.

NYC’s 25 Water Street is now America’s largest office-to-residential conversion: over 1,300 apartments, from studios to high-end amenity-rich units, made possible by a special tax exemption program.
55 Broad Street is being transformed into 571 apartments, signaling major lenders and developers are aligning around conversion strategies.

Some cities—like Houston—are taking affordability seriously by converting offices into coliving or micro-housing units:

Studies show rental rates as low as $700/month for furnished, shared units
These projects cluster amenities and reduce per-unit costs by 25–35% compared to traditional conversions

Sky-high vacancy and plunging office values
Government actions: zoning reform, tax freezes, and fast‑track approvals
Social pressure to alleviate housing shortages
Adaptability of office layouts for residential use—especially in high‑rise settings

Converting offices into homes isn’t easy:

Code compliance issues: You must retrofit plumbing, HVAC, access, egress
Infrastructure limits: Older buildings may need full seismic or fire upgrades
Financing complexity: Those historic structures might need grants or tax credits to pencil out

Office-to-residential conversion is shaping into a powerful tool to tackle urban vacancy and the housing crisis.

But it requires smart policy, technical finesse, and bold public-private partnerships.

Conversions exploded in 2024, with many more projects imminent
Strategic incentives—federal and local—are essential to make projects viable
Major metros like NYC tied policy shifts to adaptive reuse programs
For developers and urban planners, conversions offer speed, cost savings, and sustainability

Thinking about converting an office property—or need to navigate zoning and permit hurdles?

Reach out if you’d like help optimizing your project and making approvals fast and efficient.

- Odysseas Lamprianidis

"Fortune Favors Him Who Dares"