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NYC Ranks Number One In Office-to-Apartment Conversions
NYC is now at the forefront of office-to-apartment conversions nationwide. A recent report from RentCafe reports that over 8,300 office units are transforming into apartments in NYC — a 59% increase from 2024. This shift is part of a growing trend of repurposing office spaces to meet the city’s ever-growing demand for affordable housing.
Why Are Office-to-Residential Conversions On The Rise in NYC?
NYC has the largest office market in North America. This fact alone makes it a prime candidate for these renovations. The city has almost 730 million square feet of office space, almost half suitable for residential conversions.
Millions of workers have also started working remotely since the pandemic. Even those in hybrid or fully on-site roles have seen their companies shift to coworking spaces at fast rates. With traditional offices seeing less demand, the city government has a chance to repurpose the spaces into much-needed residential housing.
Local Initiatives For Residential Conversions
The city and state governments have come up with two major initiatives accelerating office-to-apartment conversions.
The state reformed its property tax law and introduced a new tax incentive that qualifies building owners for tax breaks if they meet certain conditions. They need to set at least 25% of the new dwelling aside for affordable housing and start their project before June 30, 2031, to qualify.
Mayor Eric Adams also passed the “City Of Yes” measures last month, making buildings in 1991 or older eligible for conversion projects. They also expanded the eligibility to the entire city. Previously, only building owners in a few parts of Manhattan and Long Island City were allowed to convert their properties. With these initiatives, the city plans to build over 82,000 homes in the next 15 years.
If you’re a commercial property owner with a building that can produce 50 or more housing units, contact the city’s Office Conversion Accelerator to learn more about the next steps.
“It makes no sense to allow office buildings to sit empty while New Yorkers struggle to find housing. By enabling office conversions, New York will reinvigorate its business districts and deliver new homes near jobs and transit,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “Taken together, these aggressive actions deliver on Mayor Adams’ promise to make New York a ‘City of Yes.’”
Buildings With Office-to-Residential Conversions In The Works
Some NYC buildings that plan to undergo office-to-residential conversions include:
- 219 E. 42nd St. (Former Pfizer Building) – 536 rental units
- 5 Times Square – 952 rental units
- 219 E. 42nd and 235 E 42nd St. – 1,600 rental units
- Flatiron Building – 38 rental units
- 750 Third Ave – 639 rental units
Office-to-Apartment Conversions Are The Future Of NYC Housing
Why leave so many office spaces empty when thousands of New Yorkers are looking for a new home? NYC’s office-to-apartment conversion projects are a practical solution to the city’s housing shortages. Over time, these conversions will create more affordable housing options and give the city’s commercial buildings a new life.
