Home Business Houses became offices and offices became homes

Houses became offices and offices became homes

by SuperiorInvest

About 28,000 new rental units were created in the United States by converting large, former commercial buildings to residential from January 2020 to December 2021, a significant increase compared to pre-pandemic and a decade ago.

Old office buildings have led the way in what’s known as adaptive reuse, according to a new study RentCafe, a property surveying, listings and management company that has been involved in converting buildings into residences with a minimum of 50 units.

As homes became remote offices during the pandemic, about 11,090 rental apartments were created in former office buildings, accounting for more than 40 percent of all adaptive reuse units completed in 2020 and 2021, the study shows. Reconstructions of factories and hotels followed.

Almost 7,800 units were created from office buildings in 2018 and 2019. A total of about 2,700 were built in 2010 and 2011.

As remote work continues, demand for office space falls: The national vacancy rate hit a record 19.1 percent in the third quarter of 2022, according to Jones Lang LaSalle, a commercial real estate services company. It should come as no surprise that a high concentration of adaptive housing has been found in major cities such as Washington, Philadelphia, and Chicago, where offices are common.

Adaptive apartments are still a smaller share of development compared to the 791,081 units of new-build rental units built between January 2020 and December 2021. But that was just a 10 percent increase over the previous two-year period, while adaptive reuse apartments rose 25 percent in that period .

This year, Los Angeles leads the adaptive drive field with 1,242 units completed. Nationwide, 77,100 adaptive reuse units are under construction, planning or awaiting approval to be completed in the next few years.

For weekly email updates on residential real estate news, register here.

Source Link

Related Posts

%d bloggers like this: