How Can We Help You?

Sector and market analytics

Driven by economists and leveraged by market makers.

CRE performance across major metros and asset classes. History and forecast by CBRE.

Depth, breadth and rigor concentrated at all levels.

Synthesizing macro factors and leading indicators into actionable national, sector and market research.

Perspectives, scale and connections that work.

Commercial and cultural insight aligned with intellectual capital and experience to fuel informed real estate decision-making.

Explore

Data views and extracts by scenario and on demand.

Check out the fundamentals, capital markets, and data tools now on our one-pager.

Download Now

See first hand why top institutional investors, direct lenders and private equity firms are clients.

Set a time that works for you.

Schedule Now

Click the link above to access all EA Insights

Mar 20, 2023, 15:21 PM by Dennis Schoenmaker

By: Nathan Adkins & Dennis Schoenmaker, Ph.D.

Executive Summary

Office-to-multifamily (OTM) conversions is a popular topic in the media, but rare, and unlikely to impact the bottom line of either sector. OTM conversions made up approximately 1% of multifamily deliveries over the past 20 years.
Despite a wide gap between office and multifamily vacancy rates, OTM conversions are only slightly up, and there’s no evidence they’ve significantly increased.
Construction costs and regulations on residential construction will continue to limit conversions to smaller, older office properties—whose floor plates make for an easier conversion—in markets with either high multifamily demand or government incentives aimed at historic restoration.
Though we expect OTM conversions to remain rare, there are high-demand multifamily markets in the West with untapped conversion potential due to a relatively large amount of smaller, older office buildings.

WATCH NOW

TRY IT TODAY

NEXT STEPS