CNN: Work from home could lead to more homes in vacant offices

Developers are increasingly converting vacant office buildings into apartments due to the rise of remote work reducing office attendance. However, transforming these spaces presents challenges, such as reconfiguring layouts and dealing with unexpected costs. Despite these difficulties, high office vacancy rates and a housing shortage have led local governments to incentivize these conversions with tax breaks and streamlined approvals.

Nearly 70 million square feet of office space was being repurposed in early 2024, with most aimed at becoming multi-family housing. Successful conversions, like Groove Lofts at Northstar Center in Minneapolis and Landmark Tower in St. Paul, both of which are two historic redevelopments by Sherman Associates, require extensive renovations and can be costly. Only older buildings with certain characteristics are typically suitable. Sherman has a significant history of converting office to housing including Midtown Exchange in Minneapolis, Rayette Lofts in St. Paul, and Paper Box Lofts in Milwaukee.

Local government support is crucial for these projects, exemplified by recent initiatives in New York City and Los Angeles to facilitate conversions. Beyond office buildings, Sherman has also repurposed schools and hotels to housing, with notable successes in Duluth, Minnesota; Cedar Rapids, Iowa; and Des Moines, demonstrating the potential for creative reuse of existing structures.

Read the article here: https://www.cnn.com/2024/07/17/business/office-building-conversion-to-apartments/index.html