There are now clear signs that a drive to adapt underused office space in many of the nation's cities for other uses is under way. The 100 office conversions due to be completed this year represent more than double the annual average of 41 between 2016 and 2022.
Square feet also tell the tale, up 1.2% since Q4 2022 to 60 million SF in conversions currently planned or underway, a new CBRE report reveals. As of 3Q 2023, an additional 42 projects are underway for 2024 with 18 more planned, while plans have been announced for 20 in 2025 and 117 for the years 2026 and beyond.
Nevertheless, CBRE cautions, "Conversions alone cannot resolve the challenges facing the U.S. office market."
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