In New York City, a lot of empty office buildings are being turned into apartments. This is happening faster than it has in almost 20 years. Developers are using old office buildings to help with the city’s housing shortage.
How many buildings are being converted?
This year, construction has started to turn 4.1 million square feet of office space in Manhattan into homes. That’s the most since 2008, when 4.8 million square feet were converted, according to real estate data from Cushman & Wakefield.
Why this is happening
The pandemic made some offices less needed. New city policies and a focus on housing have made it easier to convert offices into apartments. Manhattan has a big housing shortage—only about 3% of apartments are empty—so old office buildings are being reused to help people find homes.
Examples of conversions
- The Flatiron building on Fifth Avenue will become luxury apartments.
- The old Pfizer headquarters in Midtown is being converted and will be the largest office-to-apartment project in the city’s history.
Where it’s happening the most
In the past, Downtown Manhattan (the financial district) saw the most conversions. Now, Midtown—near Times Square and Grand Central—leads, with 54.8% of all conversions since 2020, compared to 35.5% in Downtown.
Looking ahead
Experts say more office-to-apartment projects are planned. Around 8.8 million square feet could be converted across 25 properties. But it’s not certain all projects will happen. Jared Koeck from CoStar said, “Most of the low-hanging fruit has been picked,” meaning the easiest buildings to convert are already being used.