Cities from Paris to Washington, D.C., are increasingly converting underused office buildings into residential apartments, as persistently low occupancy rates push property owners and policymakers to rethink the future of commercial real estate. The shift follows years of hybrid and remote work patterns that have left swaths of office space vacant, depressing valuations and straining urban tax bases. In response, developers are pursuing adaptive-reuse projects that transform dormant towers into housing, often with government incentives aimed at easing regulatory hurdles and accelerating approvals. Proponents argue the conversions can address housing shortages in supply-constrained cities while revitalizing central business districts that have struggled to attract workers back on a full-time basis.
The trend is not without challenges. Structural constraints, including deep floor plates, limited window access and complex plumbing and electrical retrofits, make many older office buildings costly or impractical to convert. Financing has also become more difficult amid elevated interest rates and tighter lending standards, slowing some projects. Nonetheless, the momentum is notable on both sides of the Atlantic, with Paris and Washington among the cities advancing policies to encourage conversions. Analysts say the outcome will depend on construction costs, local housing demand and the willingness of governments to offset risks. For now, the redevelopment wave reflects a broader recalibration of urban real estate as cities adapt to lasting changes in how and where people work.
Independent reporting synthesized from primary wires and global correspondents.