The debate and discussion on converting empty offices and hotels to housing is national in scope. Though the hotel industry has seen a recent spike in occupancy and tourism, especially in major urban cities, most economists say that the “hybrid” work force will remain in place for the foreseeable future and office footprints will be reduced. It is estimated that the United States needs to build 4.3 million multifamily units by 2035 to accommodate the growing population. Furthermore, the National Low Income Housing Coalition says there is a current need for 6.8 million units for families in need. So if there is vacancy, especially in the office market and an obvious need for housing on all levels, why isn’t this happening? Aren’t conversions the simple answer to a straightforward question?

First, national issues such as construction costs, financeability and NIMBYism drive this conversation and vary to a degree depending on the specific region. Multiple cities are offering tax breaks to incentivize officetoresidential (OTR) conversions, provided a portion are deemed to be affordable. Cities such as Pittsburgh, Boston and Washington, D.C. have issued revitalization plans to set the framework for OTR conversions, and Seattle recently launched a competition requesting owners and design firms to come up with conversion ideas.

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