A Huge Demand for Housing Leads to a Spike in Multifamily Conversions

Developers are on pace for a record year of deliveries in adaptive reuse projects turning other property types into apartments.

Apartment developers will create more new apartments in 2021 in old office, retail and hotel buildings than any time in last decade.

The pandemic didn’t slow down apartment developers who adaptively reuse old buildings. Rising apartment rents allow investors to spend more to buy and redevelopment old buildings—income from the finished apartments should eventually pay for the high cost of development.

RSK: Not sure how the hvac and parking would be met in many of these conversions. In our market I do not believe we have many totally vacant office and retail buildings that could be converted. But as noted in the article Chicago and DC lead the way.

- - Volume: 9 - WEEK: 45 Date: 11/2/2021 8:56:39 AM -