Converting Vacant Commercial Space: Strategies for Success

As remote work continues to reshape urban landscapes, many downtown business districts face an oversupply of vacant office space, impacting local economies. A natural solution is to convert underutilized office buildings into housing and mixed-use developments. According to JLL, office conversions reached record highs in 2022, 2023, and 2024, with no signs of slowing. However, these projects come with significant challenges, including structural limitations, regulatory hurdles, and financial feasibility concerns. To address these barriers, cities are introducing zoning reforms and financial incentives to encourage adaptive reuse. Successful conversions not only increase housing supply but also create dynamic, resilient commercial districts by integrating residential, retail, and office spaces. Conversion projects can be successful, including a focus on sustainability. This panel will explore key factors for executing effective office-to-residential and mixed-use conversions, including market conditions, structural adaptability, regulatory considerations, and financing strategies.