City of Seattle’s Post

Office-to-residential conversions are teetering on the edge of the "trough of disillusionment," but Boston's not ready to swipe left just yet. City of Boston and Commonwealth of Massachusetts are doubling down on this urban Tinder experiment, injecting $15 million of state cash into the city's matchmaking efforts. Since October, Boston's been playing cupid with surprising success: nine applications, 412 potential new homes, and 403,000 square feet of office space ready to trade water cooler gossip for home-cooked meals. It's like watching your workaholic friend finally discover Netflix and sweatpants. The state's offering up to $215,000 per affordable unit, capped at $4 million per project. Think of it as a government-sponsored extreme makeover for buildings having a midlife crisis. With the program extended to December 2025, city planners are hoping to conjure another 300-500 units out of thin air. It's urban alchemy at its finest - turning empty cubicles into cozy studios. This state-city partnership is the secret sauce, the WD-40 of urban development. As Boston Planning & Development Agency puts it, it's "significantly bolster[ing]" their efforts, smoothing out the creaky joints of a process that's usually about as nimble as a rusty file cabinet. Executive Office of Housing and Livable Communities calls it "good for housing, the environment and our economy." In the end, it's a numbers game. And in this case, the numbers might just add up to a solution hiding in plain sight - or rather, in plain high-rise. . https://lnkd.in/gwnC3Mff.

Great article focusing on Chicago’s response to the big post-covid issue facing many cities - huge surplus office space, particularly with older buildings leading to a lack of vibrancy in streets and neighbourhoods. Chicago’s answer - private/public partnerships and subsidies for developers to convert old offices to residential & mixed use to meet demand for city living. The subsidies support increased provision of affordable/lower cost homes as they recognise it is in the city’s interest to create vibrant, safe streets with all the amenties there to support and enhance living in the City. We could learn from this in Belfast as well as Dublin. In addition to looking at the larger new-build BTR resi models in Belfast we should also be looking for opportunities to do similar- let’s call it RTR - ‘Repurpose to Rent’ - to help bring life back to some parts of the city centre by looking at how we can adapt and repurpose what we can into homes.

Re-purposing under used former office blocks in our city centres as housing is to be applauded. Breeding new much needed life back into our urban centres. There are numerous opportunities that will arise in the coming years as hybrid working becomes rooted in society. Reduced working weeks and a more concentrated and efficient management of workers time rotation programming will result in a potential drop of up to a third in office floor space demand in city centres. So some of the older, out-dated and poorly serviced office buildings are likely to be replaced or re-purposed. Prime city centre opportunities in 1970’s buildings will present themselves in the coming years. This is already happening in many cities in U.K. and with local planning legislation not requiring a change of use application for office to residential, the path is well set. The course of reduced office demand looks certain to continue for the coming 10 years before equilibrium in demand is likely to be reached. In addition, the on-coming emergence of autonomous vehicles and car sharing (robocabs & uber type ownership) will mean the demise of the urban multi-storey car park demand and these valuable city centre sites will become available for development. The changing landscape of our cities is emerging and hopefully one that will include more people and families living in cities

ℝ𝕖𝕒𝕔𝕙𝕚𝕟𝕘 𝕗𝕠𝕣 𝕥𝕙𝕖 𝕔𝕠𝕟𝕧𝕖𝕣𝕤𝕚𝕠𝕟 ᴀɴ ᴇxᴀᴍᴘʟᴇ ꜰᴏʀ ᴅᴏᴜʙʟɪɴ ᴄɪᴛʏ ʟɪᴠɪɴɢ. Chicago Mayor Johnson is proceeding with a revamp of empty downtown buildings estimated at $1 billion, to counter a commercial real estate crisis. LaSalle Street, once known as the Wall Street of Chicago, has been struggling to fill offices after the pandemic, which has hollowed out parts of downtown. Chicago financially supports projects to transition some office buildings into residential to provide affordable housing. It’s in the city’s interest to have downtown as a vibrant place. The LaSalle Street initiative, offers generous subsidies to developers, to revamp outmoded office properties (#strandedassets) with apartments, where min 30% of units are affordable. Public funding through district tax-increment financing offers supports ranging from a quarter to half the budget. Chicago wants to draw people to its theaters, restaurants and amenities, Eighty-five percent of real estate in the area is dedicated to office space, with 5 million square feet vacant. Companies are uping pressure for workers to return to the office. But the city has recognised a revitalised downtown can’t rely on traditional office space alone. It’s needs residential units in the mix. https://lnkd.in/eCUsguAt

The city of Denver is doing some excellent work shifting vacant offices to homes. The 475 17th street project is a great example. This development, aiming to transform a 16-story office building into 210 mixed-income units by 2025, is a direct response to the city's housing needs, supported by initiatives like the Adaptive Reuse Pilot Program and a city-funded study showcasing the project's viability. This endeavor ties back to Denver's broader strategy, as seen in last year's property tax reassessment where 450 office properties achieved a $223 million valuation drop, reflecting a strategic shift in property use and economic priorities. By repurposing underutilized spaces, Denver is not just addressing its housing shortage but also adjusting its fiscal landscape to support sustainable urban growth. **Tying It All Together**: The 475 17th St. project is a cornerstone of Denver’s broader pivot from office vacancies to vibrant residential spaces, underlined by significant tax reassessments. It showcases Denver's commitment to adaptive reuse as both a practical approach to housing and a strategic move towards fiscal resilience. https://lnkd.in/gzMvwq9U #DenverRealEstate #AdaptiveReuse #UrbanRenewal #HousingInnovation #SustainableCities #MixedIncomeHousing #UrbanPlanning #RealEstateDevelopment #PropertyTax #EconomicDevelopment #CityLiving #OfficeConversion

Amidst a continuing #housingcrisis in Los Angeles, the concept of converting vacant office buildings into residential spaces is not only intriguing but potentially transformative. According to the LA Times in their article, "Turning office buildings into apartments is how California eases the housing crisis," new legislation is opening the door for such transformations, making them increasingly feasible. California's Assembly Bill 2011, set to take effect this year, is a key player in this narrative. It expedites the approval process for 100% affordable housing projects on properties originally zoned for retail, office, or parking, unlocking vast potentials — one analysis suggests that underutilized commercial properties in LA County could accommodate up to 1.6 million housing units.Los Angeles is no stranger to adaptive reuse; the city’s 1999 ordinance catalyzed the transformation of older downtown buildings, producing 12,000 housing units in 15 years. Now, with hopes to expand this successful program citywide, mid-rise office towers on the Westside and in the Valley could soon be communities’ newest residences. Yet, the conversions themselves come with their own challenges. Updating a 40-year-old building to meet modern standards can be prohibitively expensive, and Assembly Bill 529 aims to modernize building codes to facilitate these transitions without compromising essential safety standards. While the vision of transforming ‘zombie’ office buildings into vibrant residential hubs is compelling, it isn't a simple switch. Developers, stakeholders, and city planners must consider construction costs, building codes, neighborhood character, and long-term sustainability. This strategy could be a dual solution—addressing both the ghost-town appearances of some LA commercial districts and the city's dire need for more housing. But it requires meticulous planning, a substantial investment, and a cooperative legal landscape. With housing needs reaching critical levels, can Los Angeles afford not to reimagine its empty offices and strip malls as potential homes? This remains the compelling question at the heart of a debate that is sure to shape the city's future. For more insights into the evolving landscape of Los Angeles real estate, follow our page for regular #marketupdates.

The Age today has a story about one of central Melbourne's open secrets in planning: that the development bonus to allow buildings above the density cap is producing almost nothing but office space and, despite affordable homes also being a defined "public benefit" under that development bonus scheme, not a single affordable home has been built under the scheme since it started. The development bonus scheme is just one part of the central city built form controls introduced by Minister Wynne in 2016. Those controls have served the City well and provide a far superior framework than what existed before. They were necessary because of the previous Minister's propensity to waive discretionary controls and approve super-dense towers that compromised on quality, amenity, tower separation, setbacks and energy efficiency. Think the northern stretch of Elizabeth Street - the densest blocks in the country without any beneficial returns to the public and without any generosity in the way the buildings relate to their streets. Despite the overwhelming success of the controls, the missing piece has been the review of the development bonuses mechanism, which was promised to be annual and in consultation with the Council but which has never been genuinely attempted. The pandemic-induced recession and changes in land use patterns only expose just how quickly the mechanism has aged. This stuff isn't rocket science: we will get more affordable homes if the way the development bonuses are calculated boosts the value of affordable housing relative to office floor space. And if we want to allow a suite of other public benefits, then they too need to be genuinely appealing relative to office floor space. It is probably past time to retire the office floor space option entirely. While there's plenty of naysayers, I have a lot of confidence in the recovery and expansion of the CBD office market, with new builds and retrofits both part of the pipeline. And let's not forget the abundant land in Fishermans Bend, Arden and City North earmarked for office and employment uses. This city has an extraordinary capacity for more office space. But a development bonus scheme that produces nothing but office space only risks distorting the central city land use mix, and stretches the definition of 'public benefit' too far. So let's do that review!

Let’s break it down: Converting commercial Space for housing… 1. **High Costs of Conversion** - Issue: Converting office buildings into housing is expensive. - Solution: Encourage tax incentives or grants to offset conversion costs, making it more appealing for developers. 2. **Housing Demand** - Issue: There's a high demand for housing in downtown areas. - Solution: Promote mixed-use development, including residential spaces within office complexes, to meet the demand effectively. 3. **Zoning Regulations** - Issue: Zoning regulations can be a hurdle for repurposing buildings. - Solution: Revise zoning regulations to allow for more flexible land use, encouraging adaptive reuse of office spaces. 4. **Community Impact** - Issue: Communities may be concerned about changes in their neighborhood. - Solution: Engage with local communities through public forums and hearings to address concerns and ensure their voices are heard in the redevelopment process. #housingsolutions #thinkoutsidethebox

Curious about the state of Denver office #conversions? These articles sum it up perfectly. It seems obvious - repurpose older and underperforming office buildings into affordable and market-rate apartments to ease Denver's housing challenges. So... what's the delay? Simply put, the majority of #office buildings make terrible #apartments. “If you take most office buildings and convert them to residential, you’re going to end up with a whole bunch of bowling alleys where you’ve got a set of windows at one end of your apartment or your condo and then nothing for 100 feet,” said Marcel Arsenault, founder and CEO of Real Capital Solutions. “Office buildings have large floor plates and therefore, they can’t really be converted into residential. That’s 90% of the office buildings.” 🔗 https://lnkd.in/gw5-WczJ Additional barriers include energy requirements, high construction costs, and high interest rates. Without the inclusion of public #incentives or outside funding, office conversions don't pencil. The Downtown Denver Partnership estimates that an office-to-residential conversion project in Denver needs between $15 million and $40 million in public incentives. But #Denver is laying the groundwork for a path forward. On August 16th, 2023, The City and County of Denver released a study evaluating the compatibility of underutilized office buildings for potential conversion to residential uses. The study, which was funded by the American Rescue Plan Act (ARPA), identified 21 downtown Denver buildings that are “Good Candidates for Conversion.” Some of the factors used to determine whether a conversion is feasible included #walkability, proximity to #transit, natural light, the shape of the building, existing window-to-wall ratio, and ease of window replacement. 🔗 https://lnkd.in/gSaaWrhj Recently, Colorado lawmakers introduced House Bill 24-1125 this session, which would create a new tax credit for commercial-to-residential projects to the tune of $5 million annually and $3 million per project. The city has also launched an Adaptive Reuse Pilot Program in Upper Downtown. The pilot program will help support the conversion of #commercial office space to multi-use residential space by providing a dedicated project coordinator to help applicants through the review and permitting process. Three very different buildings have been approved so far: ✅ The Symes Building at 820 16th Street (built in 1906) ✅ The Petroleum Building at 110 16th Street (built in 1957) ✅ 475 17th Street (built in 1975) The city hopes to find two more to join the program.

New York City's Bold Plan to Convert Vacant Offices into Homes New York City is taking a bold step to address its housing crisis by converting vacant office spaces into residential units. This is a creative solution that could have a major impact on the city's skyline and economy. Learn more about New York City's plan to convert vacant offices into residential havens at https://lnkd.in/gYaENZQs #NewYorkCity #OfficeConversion #Housing #UrbanRevitalization #RealEstate #AffordableHousing #SustainableDevelopment