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outdated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
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