Even before the coronavirus pandemic, in a number of large European cities experiencing “hungry” on residential areas, attempts were made to convert office and commercial buildings into residential. The reason was that most investors focused on office construction as a profitable segment. Over the years, however, the housing shortage grew and the idea of turning them into residential homes began to be considered.
A similar trend, but as a result of a shift to a home office or hybrid work model, is observed today – four years after the coronavirus and in the USA. However, developers there also face the problem that converting offices into residential buildings is an expensive pleasure.
The second quarter of the current year saw a record rate of vacant office space in the US – 20.1%, according to the latest data of Мооду's Аnаlуtісѕ. At the same time, demand continues to steadily exceed supply, which keeps prices high on the one hand, and is a good incentive for the conversion of offices into housing on the other.
The state knows that such a change is an expensive pleasure, and in order to stimulate investors, it offers them tax breaks and a faster approval procedure for changing the purpose of an office building. In the first quarter of the current year, 1.7% of office buildings have already been converted into residential buildings, according to the data of the consulting company SVRE. Over 60% of the conversions currently taking place should result in multi-family housing.
Another interesting tidbit is that only 15% of vacant offices in the US are technically suitable for conversion into apartments. So the problem of empty office buildings can be partially solved.
Old office buildings are best for a change. For example, apartments require windows that are lacking in new office buildings. The new offices also have a square footage that is much larger than the main office. of dwellings is difficult to distinguish between medium-sized dwellings.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE