When it comes to repurposing old buildings into residential communities, Houston is poised to become one of the top cities in the country.
Throughout 2022, a total of 10,090 U.S. apartments were created by transforming unused office or retail space into residential buildings. The future of this trend seems even more promising: across the country, approximately 122,000 adaptive reuse apartments are planned, with 45,000 of these coming from office conversions.
“Office-to-multifamily conversions target smaller, older properties, yielding limited sector effects,” said Doug Ressler, senior analyst and manager of business intelligence at Yardi Matrix. “Based on the latest research, the conversion of office spaces into multifamily units will primarily be restricted to smaller, older office properties due to factors such as construction costs and regulations related to residential construction.”