Companies are trying their best to get their office workers to return to the office, at least a few days a week, with only middling success. Landlords are starting to face what many say is the inevitable: some buildings will simply stay empty. As they come to this reckoning, they turn to the oft-repeated mantra that these properties can be candidates for a residential conversion.
The truth is, though, that not many are, according to a white paper by Northmarq.
The concept is good in theory, but it comes with several practical challenges, according to SVP Craig Tomlinson. Still, it is worth considering especially in view of the increasing office vacancies, now estimated by CoStar at 13.2% nationwide, with some markets showing even higher numbers. In addition, many companies are about to see leases expire in the coming few years, which will make the supply of office space grow more.
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