Yair Titelboim’s Post

Conversion to housing is often touted as a solution to the problems facing the office sector, and a new study points to a more efficient way to pull off such overhauls, which are usually costly and difficult. "Flexible co-living," or dormitory-style apartments where residents share kitchen, bathroom, laundry and living spaces, could be a more efficient path to converting unused space, according to a study published Tuesday by the Pew Charitable Trusts and design firm Gensler. In an example mapped out for Seattle, where the downtown office vacancy rates average 30%, the study propsed a 120 square foot unit outfitted with a bed, desk, microwave, and refrigerator. (The typical studio in Seattle is more than three times that size at 440 square feet.) Such a model would cost renters around $1,000 per month, or $700 each for a double room, while a typical studio apartment in downtown Seattle rented for approximately $1,530 per month as of August 2024. The study's authors say this type of housing could reinvigorate downtown areas plagued by empty office buildings, the experts say.

New Life for Old Offices: The 2024 Trend of Converting Workspaces into Living Spaces 🏢➡️🏠   As we embrace 2024, a remarkable urban transformation is unfolding. The pipeline of office-to-apartment conversions is rapidly expanding. Office buildings, long-standing symbols of corporate life, are morphing into residential havens. But what do the numbers say about this shift? Let's dive into the data: 1.    Four Years, Four Times the Apartments: The office-to-apartments conversion pipeline has experienced a remarkable fourfold growth - from a modest 12,100 apartments as of 2021 to a staggering 55,300 as of 2024. 2.    Dominant Trend: Office-to-apartment conversions now make up 38% of the 147,000 future adaptive reuse projects, overtaking other building types. 3.    Younger Buildings Selected for Conversion: The average age of #office buildings undergoing conversion is 72 years, notably 20 years younger than their predecessors, hinting at a strategic shift towards buildings with modern potential. 4.    Conversion Hotspots: Washington, D.C. leads with 5,820 units, followed by New York (5,215 units) and Dallas (3,163 units), showcasing a significant step towards urban reshaping. 👉 Want to explore more about future #conversion trends? Dive into our comprehensive report for an in-depth exploration of office-to-apartment conversions and their impact on urban living. https://lnkd.in/eqrJcnew Have you seen this trend in your city? What are your thoughts on this shift? Share your views below. 👇  #RealEstateTrends #OfficeToApartment #AdaptiveReuse #UrbanLiving

From 2021 to 2024, the number of apartments scheduled for conversion from old office spaces increased from 12,100 to 55,300. Office conversions now represent 38% of the 147,000 apartments in future adaptive reuse projects. The average age of office buildings to be transformed into rentals is 72 years, 20 years younger than those previously converted.

I was initially captivated by discussions on converting office buildings into residential spaces, but now it seems like a distraction from real conversations about under utilized office space. Let’s tackle this challenge head-on. Here are 4 things we can do. Assessment: If you’re considering converting a commercial office, start by evaluating the zoning laws, conversion costs, and the owner's willingness. While these projects make for compelling stories and contribute to conservation, realistically, they might only apply to less than 1% of buildings. Rental Strategy: There's likely a rental rate that would attract new tenants—it might just be significantly lower than current rates. Alternative Tenants: Explore the possibility of different organizations using the building with minimal changes. Consider schools, nonprofits, retail outlets, gyms, and production companies. There’s a diverse range of groups that could benefit from this space. Have you considered all potential tenants? Plan for the Worst: Consider the land value of the building. In the worst-case scenario, the building could be sold for the value of the land, demolished, and replaced with something new. Know this value as it is a backstop for your decision. Office buildings and urban centers are incredible assets. Let’s keep our discussions dynamic and focused on practical solutions, let's not just get romanticized by the allure of converting offices to residential units as the sole solution.

Adaptive reuse is becoming a significant trend in commercial real estate due to shifts in market demand, sustainability goals, and the need for creative solutions to vacant or underutilized properties. 1. Office-to-Residential Conversions With the rise of remote and hybrid work, demand for traditional office space has decreased, leading to a surge in converting office buildings into residential units. This is especially relevant in urban areas where housing shortages persist. Connecticut's proximity to New York City makes this trend promising, as people may prefer more affordable residential options while still having access to the city. 2. Repurposing Industrial Spaces Old factories and warehouses are increasingly being transformed into mixed-use developments, such as creative office spaces, retail stores, or event venues. Industrial-to-office conversions often appeal to startups and tech companies, which seek out unique, open-floor spaces with historical charm. Fairfield County, with its mix of old industrial properties and affluent markets, could be ripe for these conversions. 3. Retail-to-Mixed-Use Developments Retail, particularly big-box stores and shopping malls, is undergoing a transformation. Many large retail spaces that once anchored malls are being repurposed into mixed-use developments that combine residential, office, and community spaces. This is especially relevant in suburban areas where vacant malls can be reimagined as vibrant community hubs. 4. Sustainability and Green Building Adaptive reuse aligns with sustainability goals, as it reduces the need for new construction and minimizes environmental impact. Investors and developers are increasingly prioritizing eco-friendly projects. Repurposing existing buildings often comes with tax incentives or grants related to sustainability, making it an attractive financial strategy as well. 5. Public-Private Partnerships Cities and municipalities often encourage adaptive reuse projects by offering incentives, easing zoning restrictions, or forming partnerships with private investors. 6. Flexible and Creative Use of Space Tenants are increasingly looking for flexible spaces that can adapt to multiple uses over time, especially post-pandemic. Developers are converting properties to accommodate co-working spaces, shared industrial kitchens, or multi-purpose retail spaces. Flexibility is key, allowing a property to evolve based on future market demands. 7. Historical Preservation There’s also growing interest in preserving the character of older buildings while updating them for modern use. Properties that have architectural significance or a unique history can attract tenants who value aesthetics and cultural heritage. These projects often appeal to a niche market but can offer high returns, especially when combined with retail or creative office spaces.

How San Francisco Real Estate is Adapting by Converting Office Buildings into Mixed-Use Spaces 🏢🏠 San Francisco's real estate market is evolving as office buildings undergo major transformations into vibrant mixed-use spaces. With the shift toward remote work and changing demand for office space, developers are creatively repurposing older structures for residential, retail, and recreational use. This trend not only revitalizes urban areas but also addresses the growing need for flexible living and working environments. Discover how this adaptive reuse is shaping the future of San Francisco's urban landscape. #SanFranciscoRealEstate #MixedUseSpaces #UrbanDevelopment #OfficeToResidential #RealEstateTrends #AdaptiveReuse #CityRevitalization https://lnkd.in/dT6mAYrm

For Sale: Exclusive 20,000 SF Class A Office Building – A Rare Trophy Asset Seize the opportunity to own an iconic Class A office building featuring 20,000 square feet of high-end, custom-designed space. This property is not just an investment—it's a symbol of success in commercial real estate. Landmark Visibility This custom brick building with striking architectural windows is unmissable. Located in a high-traffic area, it serves as a landmark, boosting visibility and brand presence for tenants. Prime Occupancy with Minimal Vacancy With only one small vacancy, this nearly fully occupied property promises stability and income. The available space offers extra income potential or an opportunity for an owner-occupier. Established, Long-Term Tenants Reputable medical practices and professional offices have called this property home for years, providing steady revenue and low turnover risk. Smart Investment Opportunity High visibility, premium tenants, and stable occupancy make this property a valuable addition to any portfolio, combining capital appreciation with rental stability. Premium Amenities and Design The building’s quality finishes, comfortable lobbies, conference rooms, and ample parking create a professional atmosphere ideal for high-end tenants. Ideal for Investors or Owner-Occupiers This building suits both investors and business owners seeking a prestigious, low-maintenance asset with high visibility. Schedule a Private Showing Today Don’t miss this chance to own a trophy office building that exemplifies excellence in commercial real estate. Contact us today to schedule a private tour. Own success. Invest in a legacy.

Office-to-resi conversions may be a hot topic, but they’re hardly a new idea. This recent article from The New Yorker interviews Nathan Berman of Metro Loft Management in New York— a firm that has been converting office buildings to apartments since 1997. What used to be a niche business model is now highly sought after by some of the largest real estate investors in the nation. As someone at the forefront of office-to-resi conversions in #Seattle, a few things stood out to me in this article: - By utilizing existing structures, developers can often create more livable space than if they were to develop a new building, due to current zoning restrictions. - Dependent on cost basis in the existing structure, the lesser cost of repurposing an old building can allow rental prices to be set lower than they would be in a new one. - These projects are good for the planet. According to a recent paper by the National Bureau of Economic Research, converting an office building into apartments can increase its energy efficiency by as much as 80%. What do you think of conversions as a concept? What will the ripple effects be thru our economy and society if we don’t start to convert? https://lnkd.in/dSdJR3Yg #officetoresi #CRE #sustainability #conversion #adaptivereuse

The New Yorker article delves into an emerging strategy to revitalize downtown areas hit by the pandemic and changing work habits: converting office buildings into residential apartments. The COVID-19 crisis drastically reduced office occupancy as many companies reassessed the need for large physical spaces due to the success of remote work. This situation has left numerous skyscrapers and office complexes empty or underutilized, especially in central urban areas. Proponents of converting offices into residences highlight several advantages. Firstly, it presents an opportunity to meet the growing demand for urban housing, often in short supply. Converted office buildings can become modern and affordable apartments, helping to alleviate the housing crisis. Moreover, transforming offices into residences can rejuvenate urban areas, bringing in new residents who support local businesses and enhance the safety and vibrancy of city streets. However, this process is not without its challenges. Office buildings are often not designed to become living spaces, requiring significant structural and infrastructural renovations. Additionally, there are economic and regulatory considerations, such as differences in building codes for commercial and residential structures and potential resistance from local communities concerned about the impact of new residential developments. The article examines various case studies, highlighting experiences in cities like New York, San Francisco, and Chicago, where conversion projects have been initiated. Some of these projects have succeeded, leading to an increase in the resident population and greater economic activity in the surrounding areas. In other cases, technical and economic difficulties have slowed or halted projects, leaving buildings in a state of limbo. Converting office buildings into apartments represents a promising but complex strategy to save downtown areas from post-pandemic stagnation. It requires a coordinated approach among public administrations, private investors, and local communities, along with creative solutions to overcome technical and regulatory challenges. If successfully implemented, this transformation could not only address housing demand but also revitalize the economy and vibrancy of urban areas. #revitalize #urbanstrategies #buildingconvertion #realestatechallenges

Office Space to Living Space: Conversions to Skyrocket in Major U.S. Cities 🚀 The landscape of urban living is undergoing a remarkable transformation, as evidenced by the latest RentCafe report. Over the past four years, we've witnessed a surge in office buildings being repurposed into residential spaces—a trend that reflects changing work habits and urban dynamics. In 2021, approximately 12,100 apartments emerged from former office spaces. This number soared to 23,100 by 2022 and continued its upward trajectory to 45,200 in 2023. As we navigate through 2024, the pipeline boasts an impressive 55,300 apartments, marking a fourfold increase since this trend's inception. This shift is not merely a matter of changing preferences but is also influenced by economic factors. A staggering $150 billion in office mortgages are set to mature by 2024, prompting property owners to rethink their strategies and adapt to the evolving market demands. The conversion of office spaces to residential units is more than a trend; it's a forward-thinking response to the need for adaptive reuse in our cities. It represents a positive step towards sustainable development and urban revitalization. https://lnkd.in/ebgdnyr7 #adaptivereuse #regeniumcapital