The idea of converting offices to multifamily has attracted a lot of interest, given falling valuations, uncomfortably high vacancy rates, the ongoing popularity of hybrid office use, and the uncertainty of the future.

However, Trepp suggests looking at lower-performing lodging properties for the conversion potential. They are more naturally amenable to conversions, given that they were designed as residences, even if temporary, in the first place.

What brings lodgings up for consideration are recent changes in the markets. "Performance in the lodging sector has been interesting to monitor, as delinquency rose again and remains high in many of the country's biggest metros," wrote Vivek Denkanikotte, a research analyst at Trepp. "Speaking more broadly, the outlook for lodging properties in certain regions is somewhat pessimistic as some economists expect high inflation to curb travel spending."