Based on a new report from RentCafe, it seems safe to say that converting office buildings for residential use is no longer just a kind of Hail Mary play to salvage a losing investment, but a valid development strategy– one that increasingly includes newer buildings.

According to the report, the number of apartments set to be converted from office spaces has more than tripled from 23,100 in 2022 to a record-breaking 70,700 in 2025. Office-to-apartment conversions are now the most popular type of adaptive use project, “At a national level, more than 1.2 billion square feet of office space (or 14.8% of office inventory) is considered suitable for conversion,” the report stated.

The shift to apartment use has been encouraged by the shortage of affordable housing. “More than just creating housing, this trend reflects a shift toward sustainable, community-focused urban spaces that cater to the evolving lifestyles and priorities of modern American cities,” the report noted.