Adaptive Reuse of Office Buildings

Traditional work spaces shifted dramatically as a result of the Covid-19 pandemic. Remote work became not only a safe option for many employees, but a convenient option as well. Even as much of our world settled back into routine during 2023, nearly 12.7% of full-time employees in the US continued to work from home, while a whopping 28.2% operated on a hybrid model, according to Forbes Advisor.

This, in turn, has major implications for office buildings. With less demand for in-person work spaces, US office vacancy rates hit 20% last year – the highest percent in decades. This number is only expected to grow, especially with a third of all office leases expiring in 2026. This might spell trouble for many urban centers in the years ahead.

While not always feasible, some developers and property owners are turning to adaptive reuse. 2023 saw over 100 office building conversion projects, a notable increase when compared to the 40 annual average conversion projects seen 2016 – 2022. This trend is expected to continue in the years to come.

Almost half of the projects that are currently underway or planned will be converted into multifamily apartments. Office-to-life science conversions make up about 20% of planned projects, while mixed-use and industrial uses make up a much smaller percentage.

Converting existing office buildings into other uses can be a complicated and expensive task. There are a variety of other roadblocks, which are explored in greater detail in this article from PBS News Hour.

All the same, there are already a few projects underway, including one in downtown Minneapolis.

As WFH continues to grow in popularity and as our work spaces change in the years ahead, cities will have to grapple with what to do with vacant office buildings. Converting them into other uses is just one solution that could change the feel and function of many urban centers.