A perfect storm of market conditions—including a shortage of multifamily housing, high rents and downsizing offices—combined with a massive inventory of aging, underused buildings in America's largest cities are expected to turbocharge adaptive reuse this year.
Apartment conversions doubled last year, to more than 20,000 units, with more than a third of the adaptive reuse projects involving old office buildings, according to data firm Yardi Matrix. The hottest markets for adaptive reuse were in Philadelphia, Washington DC, Cleveland and Chicago.
A new market for apartment conversion developed in Detroit last year, Yardi Matrix reported. Motown, which had no conversions in 2020, converted 874 units in 2021.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
