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| Gfycat |
Guess what we overheard at the water cooler? Office buildings are being transformed into residential units.
And btw, it's not a blip or an outlier, this has been a pandemic-era trend throughout the U.S. and Canada too.
The Memo
🔄 The Wray opened in May 2021 in Washington DC as an 8-storied apartment building with 158 luxury units. Earlier, it was a U.S. State Department office.
🔄 Multiple such buildings in Washington DC have been transformed into residential towers (roughly 1,091 new additions).
🔄 The same trend is visible in Alexandria, Virginia, with 955 new housing units.
🔄 Ex-offices account for 41% of all U.S. converted apartments over the last two years. They should provide at least a quarter of 52,700 units expected to come up this year.
Why Is This Happening?
🔖 Hybrid and remote working along with reduced office footprints of companies.
🔖 A super heated housing market.
🔖 Most American business districts are located in the core areas of cities where housing demand is also the highest.
The Positives
👍 More revitalized and populated downtowns.
😅 Economic relief from the pandemic.
❇ Better utilization of empty spaces.
📉 Cooler housing markets, more supply, lower prices.
🍀 Reduced global carbon emissions by 80% in the construction segment through adaptive reuse.