The same story is playing out across the country, as developers are contemplating office-to-residential conversions and other ways to reinvigorate downtowns. Washington, D.C., has
2.5 million square feet of office space dedicated to residential conversions, and is actively courting developers to find ways to transform some of the 20 million more that’s sitting empty. Last month, New York-based commercial landlord Silverstein Properties announced plans to funnel $1.5 billion to
turn office towers into apartments.
But the numbers are hard to make work. Because of their different design, not many office buildings work for conversion, and even for those that do, the process can be difficult and costly. And in general, office space commands a higher rent than residential, leading owners to want to hold on and hope, Loh said. So cities that want to convert buildings should look at incentives for building owners, she said.