Office Conversions, Amenities Races Reshape Multifamily

Western Real Estate Business featured “Office Conversions, Amenities Races Reshape Multifamily,” an article written by OTL’s CEO J. Wickham Zimmerman.

Demand for office conversions is on the rise in many Western markets. In fact, the national pipeline of office-to-apartment conversions has quadrupled in the past four years with more than 55,000 units planned in 2024 alone.

We anticipate this trend will persist as the nation continues to grapple with housing shortages, while cities and local governments begin to incentivize conversions as they reimagine their downtown Central Business Districts.
Conversions can be expensive. Fire permits, sewer needs and floor planning can also be time-consuming and challenging. However, when approached strategically, conversions can revitalize communities and bring
much-needed housing options to local markets. It makes sense when you think about it. These former office buildings are already centrally located in downtown hubs, offering unparalleled access to metro centers and convenient proximity to where renters work, where they want to live and where they want to play.

Convenient locations are a great selling feature for residents, to be sure but it’s far from the only consideration. With that in mind, investors and developers thinking about undertaking an office conversion must determine how they can attract residents in a multifamily environment defined by an increasing flight to quality.

Oftentimes, this strategy comes down to the type, quantity and quality of amenities offered.

Read the full article here.