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CAA: Office-to-Apartment Conversions Accelerate in LA, San Francisco
Office-to-apartment conversions in California are accelerating, especially in Los Angeles and San Francisco, as developers seek to address housing shortages and repurpose vacant office space, according to the California Apartment Association. Citing a report from RentCafe, CAA said Los Angeles ranks third in the U.S. for future office-to-apartment conversions, with units in the pipeline increasing 80% year-over-year.
CAA said LA also has significant potential for further conversions, with 83 million square feet of office space, roughly 25% of the metro’s total inventory, considered suitable for residential redevelopment. One example is the transformation of ARCO Tower, a 33-story office building at 1055 Seventh St., into apartments.
San Francisco, which has also seen rising office vacancies, has taken steps to encourage conversions. The city has updated its building codes, revised its Planning Code, and created a dedicated financing district to streamline approvals and provide financial incentives for redevelopment projects, said CAA.
- ◦Development
