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Rethinking Spaces: The Growing Trend of Office-to-Residential Conversions

The changing economy and persistent housing shortage have significantly impacted businesses and the housing market. In response, office-to-residential conversions in the past few years, particularly in the wake of the pandemic. According to a report by the real estate research firm RentCafe®, conversions have increased from 12,100 units in 2021 to more than 55,300 at the beginning of 2024–a number that has quadrupled. What is driving this trend, and what will the future hold? Let’s explore this growing phenomenon.

Key Drivers Behind Office-to-Residential Conversions?

There are several factors at play for the rise in office-to-residential conversions, including:

Increasing Housing Demand

With an ongoing national housing shortage, cities are looking for innovative ways to create housing opportunities. Converting underutilized spaces, such as offices and warehouses, into residential units is an efficient way to meet the demand without requiring new land development.

office to residential conversions - Think Architecture

Vacant Office Spaces

Because many companies have downsized or fully transitioned to remote work, vacant office buildings have become more common. Property owners and developers seek creative and unique ways to repurpose these spaces and increase their value.

Urban Revitalization

Repurposing underutilized spaces in prime urban areas brings new life to otherwise dormant areas. Because many of these office spaces are in central business districts, conversions could have a favorable downstream effect, transforming central business districts into successful mixed-use developments.

Sustainability

Repurposing an existing space saves an incredible amount of materials and reduces carbon emissions, especially compared to new construction. In addition, some developers choose to incorporate green building practices, which create a healthy living environment for residents and lower utility costs.

Overcoming Challenges to Office-to-Residential Conversions

Like many other types of development, office-to-residential conversions can present potential challenges. In many cases, the primary challenges are economic, such as acquisition costs, policies, incentives, and financing. Other common challenges include zoning and code compliance, cost and time, and market demand. Buildings, especially older buildings, can bring uncertainties that can be costly, such as the presence of asbestos. Also, traditional office building floor plates usually don’t facilitate economical dwelling unit layouts.

What is the Future of Office-to-Residential Conversions?

The future of office-to-residential conversions remains positive as the demand for flexible and affordable housing continues to grow. As remote work remains popular, there will likely be more vacant office buildings available to repurpose, providing opportunities for developers and city planners. Even though these projects present some challenges, the ability to identify and secure approval for conversion while experiencing financial incentives is becoming more attainable.

Graystone Adaptive Reuse Architecture Project near Salt Lake City, Utah | Sugar House Architects | Think Architecture

Graystone Flats: A Conversion Success Story

During the Cold War between the United States and Russia, fallout shelters became a civil defense initiative designed to reduce civilian casualties if there was a nuclear attack. The shelters were designed to protect people until radiation levels dropped to a safe level. The Graystone condominiums have been a fixture near Sugarhouse in Salt Lake City since the early ‘60s, and they needed a new life after being unused for some time.

Developers saw a unique opportunity in this building: the chance to provide affordable housing in Sugarhouse, one of the most prominent, high-demand neighborhoods in the Salt Lake City metro area. The building was converted into 800-square-foot or larger new apartments that appeal to students and young professionals. Click to read more about this exciting project.

For Office-to-Residential Conversion in Utah, Trust Think Architecture

Completing a successful office-to-residential conversion in Utah requires a deft, expert hand. As cities continue to grow, revitalizing and reusing existing spaces becomes paramount. If you’d like to get started on an adaptive reuse or a residential architecture project, contact the architects in Utah at Think Architecture.