Feb 24 2025 16 mins
Summary
In today's episode, we explore the evolving landscape of commercial real estate, discussing the challenges and opportunities presented by rising office vacancies and the growing trend of adaptive reuse. We delve into the potential of converting vacant office spaces into much-needed housing, examining the economic, social, and governmental factors that can either hinder or help these projects. Highlighting examples from cities like Atlanta, Chicago, and Boston, we assess the effectiveness of various incentives, such as tax credits and grant programs, in making these conversions financially viable and impactful. We will also discuss how government entities, like DOGE, are cutting federal leases and saving money, thus impacting office vacancies. Tune in to understand how repurposing underutilized buildings can revitalize downtown areas, address housing shortages, and contribute to more sustainable urban development.
Highlights
- Financial incentives and their role in driving conversion projects
- The impact of remote work on commercial real estate
- The challenges of converting commercial buildings to residential use
References
1. Converting Vacant Office Space Into Housing, Center for American Progress, Michela Zonta, Lily Roberts, and Jessica Vela
2. DOGE Has Ended 2.3 MSF of Federal Leases, Saved $145M, CRE Daily, Han Lung
3. DOGE Takes Credit for Terminating Lease on Jimmy Carter's Office Space, Newsweek, Jesus Mesa
4. Downtown Atlanta Commercial-to-Residential Conversion Feasibility Study, HR&A Advisors
5. From Commercial to Residential: The cost of conversion, KB Advisory Group
6. Research notes from Arthur Nerbas / Nerbas Consulting Inc.