Converting unused office space can be a great opportunity for commercial property owners and investors, while providing plenty of work for contractors, brokers, lenders, designers, and other services related to real estate transactions. From what I'm seeing, it appears to make a difference which municipality you are considering for making a conversion happen.
Some cities are looking to regulate conversions to the point of helping with grants and tax incentives. Other cities are trying to regulate rental costs or the exact type of build(s) allowed. Stamford CT is an interesting example of what can happen. The city is not offering any grants, tax incentives, or advantages, but several developers are doing conversions anyway. Although the demand appears to be there to support the need for housing over office space, some cities are more concerned with controlling rent than with providing needed housing.
It is likely that municipalities making it more challenging will lose out to others that are making it easy. This situation is another example of how and why research and having the best information can make a huge difference when it comes to real estate.
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