MyEListing.com, a free-to-use commercial real estate data and listings platform, recently published a report examining how some office space landlords have fought back against the sector’s newfound woes amidst remote work schedules and falling demand.
According to the report, hospitality conversions hold the most promise for distressed office properties. “Where [office] properties are not a good fit for residential conversion,” states the report, “property owners are increasingly looking at hospitality as a viable alternative due to the challenges associated with transforming office spaces into residential residences.”
The report outlines three examples:
- The conversion of an office building at 960 Sixth Avenue in New York City to a hotel;
- The conversion of an older office building in Chicago’s downtown loop into a chic boutique hotel; and
- The conversion of an older office building in Philadelphia into a mixed-use development containing a hotel, shops, and apartments.
Ultimately, the study surmises that, while conversion of distressed office properties into residential housing is not impossible, the structural, zoning, and architectural challenges of doing so may prove prohibitive: Office buildings generally don’t contain the necessary amenities to comfortably host residential living, such as bedrooms, kitchens, and larger living spaces. The report concludes that, so far, office-to-hospitality conversions tend to provide the greatest long-term benefits, even amidst the potential blunders of doing so.
You can read the full report here: https://myelisting.com/commercial-real-estate-news/1519/office-buildings-reimagined-hospitality-conversions-unlock-new-potential/
MyEListing.com is a national commercial real estate marketplace and data platform helping real estate professionals and others from all corners of the industry. Users can sign up for free and get access to accurate local market intelligence, comp software, and more. The site also supports other players in the industry, including NAI Global, Colliers, and Cushman & Wakefield.