California CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
California Has 14K Apartment Conversions in the Pipeline
California’s commercial-to-apartment conversions have a promising future despite a slowdown in completed projects over the past year, according to a RentCafe report. The pipeline for such conversions is robust, with nearly 14,000 apartments in different stages of development.
Although hotel conversions gained popularity nationwide in the past year, California shows a strong preference for office conversions, with 4,306 office-to-apartment conversions in the pipeline, or 31% of the total. This addresses both office vacancies and housing scarcity, RentCafe said. Hotel spaces represent another 27% of the state’s pipeline.
Los Angeles leads the nation with 5,881 projected apartments from adaptive reuse projects, knocking Manhattan’s pipeline into second place, reported RentCafe. However, the office sector’s share of LA apartment conversions is slightly below the statewide average at 1,700 units, or about 29%.
The state’s second largest pipeline for conversions is in Fresno at 1,111 units, 795 of which will come from a former healthcare building. Sacramento, San Diego and San Jose round out the top five.
- ◦Development
