Could Vacant Offices Fill The Affordable Housing Void

Could vacant offices fill the housing void?
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Due to affordable housing production lagging demand for decades, housing affordability has become the #1 challenge for mid and low income households throughout the world. 

The Office Conversion Opportunity

Experts feel that when located in dense, highly walkable neighbourhoods that are close to work and urban amenities — like parks, markets, and schools — conversion from office to residential can be helpful in addressing the world’s affordable housing shortage. 

If we can think of office conversions as a small answer to our affordable housing needs, and not a sole solution, there is no reason it can't work. But, there are pros and cons, per Forbes.  

Conversion Yays

🔼 Demand for office space has taken a big hit and old office buildings in the downtown areas are probably never going to see optimum occupancy anytime soon. Converting them into small affordable housing units can make them viable again. 

🔼 Conversion is the fastest way to provide affordable housing in an employment-rich location, which is where most aging office buildings are located.

🔼 Central business district (CBD) conversions are less likely to face local opposition than construction in established residential neighbourhoods.

🔼 Office to housing conversion can take advantage of existing infrastructure, (including water, electrical, broadband, sidewalks and fire hydrants, etc.), and crash project times significantly. 

Conversion Nays

🔽 The biggest hurdle and the reason we have seen so little office to residential conversion – is because it can be crazily expensive to achieve. 

🔽 Unpredictable construction challenges, unusual floor plans could mean higher costs, translating into higher rents killing affordability. 

🔽 The lack of interest among commercial landlords to become residential owners, making sales necessary to achieve these conversions. 

🔽 Conversion could trigger a plethora of difficult-to-navigate regulatory hurdles and land use conversion roadblocks. 

Despite the nays, are building owners trying out such conversions even as you read this? 

♻ Yes. In fact, one of the upcoming real estate trends, really – is adaptive reuse. 
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