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Manhattan Enters New Era of Office-to-Resi Conversions
New York City is entering a new era of office-to-residential conversions, CBRE reported. Conversions in Midtown Manhattan are taking place at an unprecedented rate, as developers acquire underperforming assets in the primary business district and peripheral areas. And the conversion trend is not limited to Midtown, with the pipeline reaching from Battery Park to Central Park.
CBRE reported that Manhattan’s supply of properties undergoing conversions has a median age of 68 years, with 60% of the 8.3 million square feet located in Midtown. More than 50% of the square footage currently being converted in Manhattan was built after 1961.
“While office-to-residential conversions will not fix Manhattan’s oversupply of office space, adapting some of the older product will certainly help in making the remaining office space more attractive,” said CBRE’s Doug Middleton. “In addition, it will provide a boost to the city’s dire shortage of residential housing and inject thousands of new residents in areas traditionally reserved for office use.”
Pictured: The former Pfizer headquarters, now being converted to residential use.
- ◦Development
