Opinion Piece Explains Challenges of Office-to-Residential Conversions

The Washington Times Editorial Board recently published an opinion piece titled “Just Look at Why It’s So Hard To Turn Offices Into Homes.” In it, the authors observe that most major U.S. cities are experiencing an approximately 20% office vacancy rate, but that only 2% of office space in major cities is currently being converted to residences. Highlighting 10 major U.S. cities with office vacancy rates ranging from 27.3% (San Francisco) to 15.5% (Cleveland), a graph highlights the U.S. office vacancy average of 18.2%. Cities’ residential conversion statuses range from a fraction of a percentage point to an impressive 10.8% in Cleveland, where office properties have been underutilized for years and are available at very appealing prices. The plumbing, electrical systems and architectural dimensions of offices typically require major reconfiguration to convert them to residences, and that comes with a hefty price tag. That, along with prohibitive zoning regulations, dissuade developers from embarking on such projects. One way cities can spur such development is by offering resources, both monetary and red-tape wise, to developers. Calgary, Canada, is among cities seeing success from such programs, and NYC hopes to, too, with efforts like the recently unveiled Office Conversion Accelerator group and the Midtown South Neighborhood Action Plan.