The Case For Conversions

The demand for office space has declined due to the rise of remote work. While occupancy rates have improved, they are unlikely to return to pre-pandemic levels, especially for older Class B and C buildings. These structures struggle to compete with modern Class A offices that offer better amenities and work environments. As a result, converting underutilized office spaces into residential units presents a practical solution for property owners and city planners. Office-to-residential Conversions provide a pathway to repurpose underperforming assets, enhance property values, and contribute to the city’s housing and sustainability goals. By adapting to market shifts and regulatory requirements, building owners can create vibrant, energy- efficient communities while ensuring long-term economic viability.

GOTHAMBUILDING.COM

REPURPOSING UNDERUTILIZED PROPERTIES

THE CASE FOR CONVERSIONS

The demand for office space has declined

due to the rise of remote work. While

occupancy rates have improved, they are

unlikely to return to pre-pandemic levels,

especially

for

older

Class

B

and

buildings. These structures struggle to

compete with modern Class A offices that

offer

better

amenities

and

work

environments.

As

a

result,

converting

underutilized office spaces into residential

units presents a practical solution for

property owners and city planners.

Response

To Change

In Demand

Housing +

Economic

Benefits

GOTHAMBUILDING.COM

Office-to-residential

conversions

support the city’s efforts to address the

housing

crisis.

By

transforming

outdated

office

buildings

into

apartments, cities can increase housing

supply while revitalizing local districts.

These

conversions

create

24-hour

neighborhoods,

improving

safety,

economic activity, and the live-work-

play

dynamic

that

attracts

both

residents and businesses.

With the implementation of Local Law

97, building owners must either invest

in costly upgrades to reduce emissions

or face financial penalties. Converting

office buildings into residences can

significantly lower carbon footprints,

aligning

with

the

law’s

emissions

reduction targets. Research by Arup

suggest

that

such

transformations

could lead to a 54% decrease in carbon

emissions by 2050, helping property

owners avoid fines while supporting

environmental sustainability.

Environmental

+ Regulatory

Benefits

ARUP. (2023). OFFICE TO RESIDENTIAL CONVERSIONS: THE CARBON STORY

GOTHAMBUILDING.COM

Prewar

office

buildings,

designed

before the advent of air conditioning,

are

particularly

well-suited

for

residential conversions. Their original

layouts—with windows for natural light

and ventilation, perimeter unit designs,

and

centrally

located

hallways,

elevators, and staircases—align with

modern

apartment

needs.

These

structural advantages make conversion

projects

more

feasible

and

cost-

effective.

Ideal Candidates:

PRE-WAR

BUILDINGS

GOTHAMBUILDING.COM

Office-to-residential

conversions

provide

a

pathway

to

repurpose

underperforming

assets,

enhance

property values, and contribute to the

city’s housing and sustainability goals.

By

adapting

to

market

shifts

and

regulatory

requirements,

building

owners can create vibrant, energy-

efficient communities while ensuring

long-term economic viability.

A

Win-Win

Solution

GOTHAMBUILDING.COM

CONTACT US

.com

info gothambuilding

.com

www.gothambuilding

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