Interest in adaptive reuse projects, particularly office-to-multifamily conversions, rose following the start of the COVID-19 pandemic, both as a housing solution and a means to bring activity back to downtown areas, according to RentCafe.
Despite making up the majority of conversions in progress, office-to-multifamily deliveries are at their lowest point in a decade, with only 3,390 new units delivered in 2022. RentCafe notes that the office market is in limbo as remote work remains popular. At the same time, hotel conversion deliveries have risen to their highest level in five years, reflecting the drop in travel around the start of the pandemic.
