Can Vacant Office Buildings be Re-Purposed as Housing?
October 28, 2021
Rising commercial vacancy rates and growing housing affordability and supply challenges have led to growing interest in the potential for converting office buildings into residential space. If office-to-residential conversions were feasible, these re-purposed properties could meet the two goals of addressing a weakening commercial market and providing much-needed housing.
Office-to-residential conversions can sometimes produce benefits not available with new construction projects. For example, older commercial buildings targeted for conversion often have unique features that home buyers and renters highly value. In addition, an office-to-residential conversion can result in new housing options that are well-connected to transit, jobs, and other services. Finally, there can be sustainability benefits associated with conversions that are not available in new construction projects.
Despite these benefits, there are challenges to converting office buildings into housing, including structural, zoning, and economic obstacles. There have been relatively few office-to-residential conversion projects, but there have been enough examples in Virginia to suggest some best practices for local officials, developers, and other real estate professionals interested in promoting these types of repurposing projects.
Read the full report on office-to-residential conversion, including case studies from Alexandria, Fairfax, and Richmond.
Click here to send any comments or questions about this piece to Virginia REALTORS® Chief Economist Lisa Sturtevant, PhD.
You might also like…
Collapse of Silicon Valley Bank and Signature Bank: What Happened and How It Impacts Your Business
By Virginia REALTORS® - March 17, 2023
By: Chief Economist Ryan Price & Deputy Chief Economist Sejal Naik Virginia REALTORS® is taking a look at the recent bank failures making headlines across the nation AND… Read More
Women’s Homeownership Trends in Virginia
By Dominique Fair - March 16, 2023
Women have made many strides over the past century. From gaining voting rights in 1920, to the Equal Credit Opportunity Act of 1974, which prevented lenders from discriminating… Read More
Multifamily Housing & New Construction Activity
By Sejal Naik - March 14, 2023
Low inventory continues to be a persistent issue in today’s housing market. In the current market, understanding the trends in new construction activity could be beneficial to determine… Read More