Commercial to Multifamily Conversions in North American Cities

The COVID-19 pandemic heavily impacted the commercial real estate industry. Office workers began to work from home, and many downtown business districts across the country shut down temporarily or indefinitely. While restrictions have been lifted and downtown areas are again open, there has been a shift to remote or hybrid work models, impacting commercial real estate occupancy and needs. As of July 2023, demand for office space has yet to return to pre-pandemic levels. At the same time, multifamily demand is booming, due to housing shortages across the country particularly but not limited to affordable housing.

As a solution to the persistent office vacancy rates and declining multifamily vacancy rates, many cities and developers have begun to explore the concept of commercial-to-residential conversions. Conversion projects repurpose existing commercial buildings, typically offices, into multifamily residential buildings. The trend is growing in the news, in research, and in local policy.

This anthology seeks to compile existing research reports, industry insights from major real estate companies, national news articles, local news articles, and state and local policies surrounding the topic of commercial-to-residential conversions. In total, the anthology is a snapshot of the conversions trend at the current moment. It can be used to understand the general feasibility of conversions and the key markets in which conversions are on the rise.