Office-to-Apartment Conversion Challenges

Office-to-apartment conversions face challenges due to financing issues, stagnating rental markets, and other obstacles. Seattle's office space demand is lowest among U.S. cities, attributed to the absence of demand for large spaces. The Flatiron Building in Manhattan is undergoing a $161 million renovation to become a condominium development, aligning with the nationwide trend of repurposing office buildings into housing. The Biden administration is releasing a new plan to facilitate office-to-residential conversions, including below-market financing programs and federal housing dollars.