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Resi Conversions Grab a Larger Share of the Market

The increase suggests a growing preference for repurposing newer structures.

By Philippa Maister | February 05, 2025 at 05:53 AM

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.

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