In recent years, many former office buildings have been renovated into apartments, driven by the COVID-19 pandemic’s lasting shift to work from home. Office vacancies hit a record 20.1% in the United States in the second quarter of this year, according to a recent report from Moody’s Analytics. This is up from 19.8% in the prior quarter and is the first time the 20% barrier has been broken.With supply of homes also persistently below demand, local governments have increased incentives, including tax breaks and quicker approval processes, for office building conversion, CNN reported. In the first quarter of this year, 1.7% of total U.S. office supply was in the process of being redeveloped for other uses, according to a recent report from CBRE. Approximately 120 office-conversion projects nationwide—one-third of them to multifamily—are expected to be completed this year, compared with an annual average of 45 between 2016 and 2023. This pipeline indicates higher-than-average conversion completions during the next several years...
RSK: Empty office space lowers the value of the buildings which in turn lowers the taxes paid by the owner. This shortfall is often made up by passing it onto homeowners. Nothing good from vacant buildings. Why many municipalities offer incentives to convert those vacant buildings into a higher and better use.
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- - Volume: 24 - WEEK: 30 Date: 7/23/2024 2:31:58 PM -