Abandoned office buildings all over the U.S. are being converted into apartments.
By the numbers: In 2020 and 2021, a whopping 13,250 apartments across the country have come from repurposed offices, per a new report from RentCafe.
- Former office buildings make up 41% of the apartment conversion market, which also includes old hotels, warehouses, factories and even hospitals.
It's a sign of the times. As the pandemic normalizes remote work, lots of firms — from startups to multinational corporations — are downsizing their offices. A logical new purpose for these centrally located buildings with big parking lots is housing.
- Repurposing old buildings as apartments is easier on developers, too. The renovations can cost up to 40% less than a new construction, per RentCafe's report.
The top cities for converted apartments are Philly (1,863 new units in 2020 and 2021), D.C. (1,762 units) and Cleveland (1,179 units).
What to watch: It's not just old office buildings that are undergoing a retrofit. As we've reported, ugly parking garages all over America are getting new lives as apartments, commercial kitchens and elevated public parks.
