{"id":40686,"date":"2024-12-10T07:27:30","date_gmt":"2024-12-10T04:27:30","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?p=40686"},"modified":"2025-07-18T15:27:49","modified_gmt":"2025-07-18T12:27:49","slug":"top-u-s-cities-office-conversion-feasibility","status":"publish","type":"post","link":"https:\/\/www.commercialcafe.com\/blog\/top-u-s-cities-office-conversion-feasibility\/","title":{"rendered":"What Are the Top U.S. Cities for Office Conversion?"},"content":{"rendered":"
[vc_row][vc_column][vc_column_text css=””]As 2024 winds to a close, it is decidedly a time of changes, choices, and consideration in the real estate sector as much as it is in every other industry. Granted, some changes to our built environment are undeniably necessary. Namely, current challenges include: aging and obsolete office buildings left vacant by the flight-to-quality movement; a commercial real estate sector in dire need of decarbonization<\/a>; an increasingly tight housing sector; and big-city downtown economies that struggle in the dwindling foot traffic of recent years.<\/p>\n

Of course, changes require choices and wherever there is choice, there is opportunity. So, with consideration to the importance of all of the above, we turned to CommercialEdge research on the feasibility of office-to-residential conversions. Specifically, we looked at how much urban core office space is a quality<\/em>\u00a0or\u00a0top-tier candidate<\/em>\u00a0for such neighborhood revitalizing transformation. See our methodology<\/a><\/strong> section for details and read on for our list of the\u00a0top 30 U.S. cities for office conversion<\/strong>.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_message message_box_style=”outline” css=””]The conversion feasibility index (CFI) is a new market intelligence tool developed by CommercialEdge. The index evaluates office properties based on building characteristics; location and placement; architectural considerations; and environmental factors. The resulting score places the property in one of three categories:<\/p>\n

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  1. Tier I is 90 to 100 points and marks top conversion candidates (easily adaptable to multifamily property use)<\/li>\n
  2. Tier II is 75 to 89 points and identifies quality conversion candidates (conversion may require some special effort, but is still largely viable)<\/li>\n
  3. Tier III is 74 points or less and includes properties that are more difficult candidates for conversion (conversion is possible, but comes with considerable challenges)<\/li>\n<\/ol>\n[\/vc_message][\/vc_column][\/vc_row][vc_row][vc_column][vc_raw_html css=””]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[\/vc_raw_html][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=””]\n

    How Much Could Transforming Aged Office Space Revitalize America\u2019s Premier Downtowns?<\/h2>\n

    As more and more residents were\u00a0priced out of city core housing markets<\/a>\u00a0in recent years, commuting into work became the main driver of foot traffic downtown. This also made retail and other service sectors in the downtowns of the country\u2019s most prominent urban hubs dependent on the increasingly tense pre-pandemic workplace paradigm.<\/p>\n

    As we prepare to enter 2025, a multitude of cities in the U.S. are faced with a dual challenge \u2014 a glut of underutilized office space alongside a scarcity of affordable housing. However, within these complex challenges lies opportunity: Across the top 30 U.S. cities we analyzed, the great majority of Tier I and Tier II conversion-feasible office spaces are concentrated in the central business districts and surrounding urban submarkets \u2014 the same areas that have been most affected by office vacancy rates since 2020 and the flight-to-quality office leasing trend that took off before that. While some cities \u2014 particularly those that had room to sprawl \u2014 also have some space feasible for office-to-residential conversion in their suburban segments, the majority of office space has historically been concentrated in the urban core, where data also showed the largest potential for redevelopment.<\/p>\n

    A focus on Tier I conversion-feasible stock in these 30 central business districts and surrounding urban segments alone could mean turning roughly 167 million square feet of aging office space into modern residential and mixed-use properties. That would bring more residents back into the urban core and make for more inclusive live\/work\/play downtown communities, as well as better building practices in terms of urban planning and environmentally conscious construction.<\/p>\n