{"id":1004707799,"date":"2024-04-03T04:41:51","date_gmt":"2024-04-03T12:41:51","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004707799"},"modified":"2024-10-01T00:54:16","modified_gmt":"2024-10-01T08:54:16","slug":"can-adaptive-reuse-revitalize-us-cities","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/can-adaptive-reuse-revitalize-us-cities\/","title":{"rendered":"Can Adaptive Reuse Revitalize US Cities?"},"content":{"rendered":"\n

Communities nationwide are looking for creative ways to reuse vacant, outdated or underutilized real estate\u2014including office, hotels, manufacturing sites, warehouses, department stores and terminals. Most times, the endgame is much-needed housing and economic boosts, a lifeline for post-pandemic urban cores.<\/p>\n\n\n\n

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Gensler\u2019s Sheryl Schulze, Global Building Transformation + Adaptive Reuse Leader, said the architecture powerhouse is collaborating with several cities, but market conditions are stifling some projects.<\/p>\n\n\n\n

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READ ALSO:<\/strong> How Vacant Office Spaces Get New Life<\/a><\/p>\n\n\n\n

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Schulze has worked on many adaptive reuse developments, including 601W Cos.\u2019 $1.3 billion, 2.5 million-square-foot redevelopment of the Old Chicago Post Office<\/a> into a mixed-use office and events destination.<\/p>\n\n\n\n

\u201cThere\u2019s so much on the boards and there\u2019s so much ready to go,” Schutze mentioned. “It\u2019s unfortunate that due to these circumstances we haven\u2019t seen things be able to progress a little bit further.\u201d<\/p>\n\n\n\n

The focus on revitalizing buildings is driven, in part, by efforts to make cities more 24\/7 and the growth of the \u201c20-minute city,\u201d<\/a> where you can be within a 20-minute walking or transportation distance of where you work, live and play, noted Nancy Ruddy, executive director of interior design & founding principal with CetraRuddy. CetraRuddy has been doing office-to-residential conversions<\/a> since the late 1980s.<\/p>\n\n\n\n

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Interior of the 55 Broad coworking space in New York City. Image courtesy of CetraRuddy<\/em><\/figcaption><\/figure>\n\n\n\n

NYC renewal<\/h2>\n\n\n
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Exterior of 55 Broad St. in Manhattan.
Image courtesy of Joe Woolhead<\/em><\/figcaption><\/figure><\/div>\n\n\n

A New York City zoning rule, which spurred many projects in Manhattan\u2019s Financial District, allows commercial buildings constructed before 1977 to go full residential. CetraRuddy is working on two of the largest office-to-residential conversions in the city. One is 55 Broad St., a former Goldman Sachs headquarters, which opened in 1967 and is being transformed<\/a> into 571 market-rate apartments by Silverstein Properties and Metro Loft Management.<\/p>\n\n\n\n

The biggest such project<\/a> in the U.S. is also located in downtown Manhattan, at 25 Water St., where GFP Real Estate, Metro Loft Management and Rockwood Capital are redeveloping a former 22-story office building from 1969 into a 32-story tower with about 1,300 rental units.<\/p>\n\n\n\n

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READ ALSO:<\/strong> Refining a Brooklyn Sugar Factory for Today\u2019s Office Market<\/a><\/p>\n\n\n\n

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Having the largest office stock in the U.S., New York City is a prime example when it comes to such projects. Mayor Eric Adams launched an Office Conversion Accelerator to help create 20,000 housing units by repurposing empty office space. The city is also seeking to rezone Midtown South from only manufacturing and office space to allow housing.<\/p>\n\n\n\n

Yes, a lot is office (cue shock). But not all.<\/h2>\n\n\n\n

A recent NAIOP office space demand forecast<\/a> says that net office absorption in 2024 is expected to clock in at 5.7 million square feet, dropping to about 4.5 million square feet in 2025. As office leases expire, tenants are often taking less space at newer buildings, leaving vacancies in older, less amenitized buildings.<\/p>\n\n\n\n

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READ ALSO:<\/strong> Office-to-Resi Focus for Marty Burger\u2019s New Venture<\/a><\/p>\n\n\n\n

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Office conversions make up about 38 percent of the 147,000 apartments in future adaptive reuse projects across the U.S., with the overall figure growing fourfold in just four years, according to RentCafe. Of the conversion projects in the pipeline this year<\/a>, Washington, D.C, is set for 5,820 units, up 88 percent over 2023; followed by New York City with 5,215 units and Dallas with 3,163 units.<\/p>\n\n\n