The boom in office-to-housing conversions is being driven largely by plummeting values for offices, which have struggled to retain tenants in the aftermath of the pandemic.
CBRE’s report shows that most of these former offices are being turned into housing, accounting for 74% of the projects underway or completed this year.
Even after the lockdowns of the pandemic lifted in many places, office vacancy rates have remained high across the U.S., reaching record levels of nearly 20%.
Given the multi-year timeframe of urban development projects, many of these pandemic-related conversion projects are finally coming online, providing much-needed housing.
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