Market Briefings: Adaptive Re-Use - What’s Next for Office?-Market Briefings Adaptive Re-Use

Video Transcription

Video Summary

This ECEC market briefing, "Adaptive Reuse: What's Next for Office?" held May 1, 2024, explored the transformation of underutilized office buildings into residential and other uses. Panelists included Aaron Jodka from Colliers, Steven Painter of Gensler, and Rob Wenger from WCS Construction. Aaron provided a market overview highlighting rising office vacancies, especially in older Class B and C buildings, and noted strong capital interest for opportunistic acquisitions despite financing challenges. He emphasized that although many buildings face obsolescence, only about 30% of office buildings are structurally viable for conversion into housing or other uses. Steven discussed Gensler’s algorithm that rapidly assesses office buildings' suitability for conversion based on floor plate, site, and structural factors. He shared examples from cities like Calgary and Toronto where large-scale conversions are underway. Rob detailed a specific office-to-residential project in Washington, D.C., explaining demolition strategies, HVAC system choices, and structural solutions to maximize space and cost efficiency. The panel addressed challenges such as high retrofit costs, financing hurdles, and the need for incentives to enable conversions. They also discussed demographic and regional demand trends supporting ongoing multifamily housing needs. Federal and local incentive programs were highlighted as critical to fostering adaptive reuse, with attention to policy updates accelerating conversions to meet housing shortages across U.S. markets.

Keywords

adaptive reuse

office building conversion

residential transformation

office vacancies

structural viability

conversion algorithm

retrofit costs

housing incentives

multifamily housing demand