Number of Offices Converted to Apartments Spikes

As the urban landscape continues its makeover, shifting from corporate to community, more office buildings are being converted into apartments, according to a new report from RentCafe.

The report said the number of apartments being transitioned increased from 12,100 to 55,300 from 2021 to 2024.

This growth is occurring, in part, because of the $150 billion in office mortgages due by 2024, according to the report.

“Entering 2024, our cities are riding a wave of change that’s been building up for the last four years,” writes RentCafe report author, Andrea Neculae.

Office conversions now represent 38% of the 147,000 apartments in future adaptive reuse projects, outpacing any other building type, according to the report.

Newer buildings – relatively speaking – are playing a bigger role with the average age of office buildings to be transformed into rentals being 72 years, 20 years younger than those previously converted.

The trend is most prominent in Washington, DC (5,820 units), New York (5,215 units), and Dallas (3,163 units). Seattle and Los Angeles are also participating in the trend.

In DC, the transition to apartments represents a 64.5% share of the area’s total conversions – a “staggering” 88% increase compared to a year ago, according to the report.

“This movement is not just about adding housing; it’s a shift towards more sustainable and community-focused urban environments, indicative of changing lifestyles and priorities in American cities,” Neculae said.