Conversions of non-residential forms of commercial real estate to multifamily units is not only possible — it appears to make financial sense much of the time, according to a new report from the National Multifamily Housing Council and ULI.

Noting that such conversions have become "a mainstream development option, and perhaps even a specialized niche sector," the report finds that local, regional and national developers alike have honed the skills necessary to convert non-residential buildings to residential ones, and both institutional and private capital are actively pursuing investment opportunities in that regard. And "many of those interviewed (for the report) indicated that this was their first or second conversion of CRE to multifamily, having a track record already in ground-up development or investment in office and/or residential properties, while others have long specialized in revitalizing old buildings," the report states.

Overall, such conversions appear to be financially feasible in a broad range of markets, from small cities to large metros, as well as across a spectrum of original uses, building conditions, and other circumstances. What's more, occupancy does not seem to be an impediment to the process "and complete vacancy is not an absolute requirement," accordion to NHMC.