Office To Apartment Conversions Start With Location

In real estate, if you are going to perform research on a concept, you need to go all in. The purpose is not to prove your theory. It is to gather enough data and information to be able to make an informed and unbiased decision. I recently had a coaching client tell me he did not need to research converting office space to apartments any further because he saw where doing so is not cost effective. Upon my query, he told me his finding was based on data for the large city closest to where he lives.

Although office space conversion may not be feasible in his area of concentration, his answer forced me to remind him that his research was not complete. My first question to him was “What is your intention?” Upon his silence, I expanded on my response. “What was your goal? Is it to find a location to do an office conversion? Or is it to find a good real estate investment within your local area?”

The answers to those questions go a long way in determining the next step. Those staying on top of the office space to residential trend know that some cities have solid opportunities for profit while others most definitely do not. It all depends on where you are looking, and that’s the point. 

Los Angeles needs the housing, but bureaucracy continues to make doing office to residential conversions too much of a challenge to adjust within the current climate. In Stamford, CT, developers are creating conversions even before legislators can keep up because there is so much demand and plenty of opportunities. In Pittsburgh, the city offers incentives and projects are affordable, but the demand for more housing is not enough to support the effort. Houston brings logistical concerns, such as office buildings not having enough parking sufficient for a large residential complex. 

There are plenty of situations where these conversions are appealing to all concerned, but it takes thorough research to find them. Meanwhile, there are plenty of cities with solid real estate development and investment opportunities, which may or may not involve conversions. Establishing clear goals is necessary before your research person or team begins to investigate. My client is another example of why you need a research person or team to help you make important choices.

 

https://propmodo.com/how-cities-are-turning-empty-offices-into-housing-and-what-it-really-takes-to-make-it-work/