{"id":1004770551,"date":"2025-10-13T03:04:15","date_gmt":"2025-10-13T11:04:15","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004770551"},"modified":"2025-12-01T07:58:49","modified_gmt":"2025-12-01T15:58:49","slug":"the-rise-of-retail-to-office-conversions","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/the-rise-of-retail-to-office-conversions\/","title":{"rendered":"The Rise of Retail-to-Office Conversions"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a0e64e0644f2&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignright size-full is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"620\" data-attachment-id=\"1004770553\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/the-rise-of-retail-to-office-conversions\/221204_loffler\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_1.jpg\" data-orig-size=\"800,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Brandon Stengel&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1675186386&quot;,&quot;copyright&quot;:&quot;Brandon Stengel&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;221204_Loffler&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Loffler_StLouisHQ_Gensler\" data-image-description=\"&lt;p&gt;image sent via wetransfer by Gensler PR  Mia DiMeo&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Loffler Cos. has relocated its offices to a former Sam\u2019s Club grocery store in St. Louis Park, Minn., repurposed into modern workspace.&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_1.jpg?w=800\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_1.jpg\" alt=\"Modern open office space with high ceilings, featuring a wooden staircase, gray and red seating, and people engaged in conversation. Contemporary and inviting atmosphere.\" class=\"wp-image-1004770553\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_1.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_1.jpg?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_1.jpg?resize=768,595 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">Loffler Cos. has relocated its offices to a former Sam\u2019s Club grocery store in St. Louis Park, Minn., repurposed into modern workspace. <em>Image by Brandon Stengel, courtesy of Gensler<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>Once viewed as a last resort for struggling assets, retail-to-office conversions are emerging as a creative fix for two of commercial real estate&#8217;s most pressing challenges: stubborn retail vacancies and rising demand for flexible, <a href=\"https:\/\/www.commercialsearch.com\/news\/enhancing-work-environments-through-creative-offices\/\">creative work environments<\/a>. <\/p>\n\n\n\n<p>Though still a niche strategy, retail-to-office conversions are drawing growing interest from developers, designers and institutional investors alike. Their appeal lies in a rare combination of location, scale and adaptability\u2014qualities that stand out as many traditional malls and big-box stores continue to grapple with declining foot traffic and shifting consumer habits.<\/p>\n\n\n\n<p>With the right partners and vision, these underused assets can become lively workplaces that meet the needs of modern office tenants, ultimately transforming a liability into a lasting source of value.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO: <\/strong><a href=\"https:\/\/www.commercialsearch.com\/news\/rethinking-mixed-use-office-space-with-retail\/\">Why Retail Belongs in Office Projects<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-retail-to-office-conversions-are-gaining-ground\">Why retail-to-office conversions are gaining ground<\/h2>\n\n\n\n<p>The collapse of traditional mall anchors\u2014particularly in Class B and C properties\u2014is creating fertile ground for such conversions, according to Deborah Smith, co-founder &amp; CEO of CenterCap Group. <\/p>\n\n\n\n<p>&#8220;Consumer appetites have shifted toward immersive experiences like entertainment and F&amp;B that elevate retail space from mere shopping zones into destinations,&#8221; she said. &#8220;Retail-to-office conversions are emerging as a creative response, spurred by the <a href=\"https:\/\/www.commercialsearch.com\/news\/return-to-office-rebounds\/\">return-to-office movement<\/a>, the widening quality gap between trophy and secondary office spaces.\u201d<\/p>\n\n\n\n<p>Many aging retail structures offer inherent advantages such as open floorplans and strategic locations. These features make them ideal candidates for conversion into flexible, amenity-rich workplaces.<\/p>\n\n\n\n<p>&#8220;In essence, repurposing retail into office space isn\u2019t just practical\u2014it\u2019s a thematic match: breathing new life into old infrastructure that once anchored community life of past generations,&#8221; Smith added.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a0e64e065a7c&quot;}\" data-wp-interactive=\"core\/image\" class=\"aligncenter size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"667\" data-attachment-id=\"1004770554\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/the-rise-of-retail-to-office-conversions\/221204_loffler-2\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_2.jpg\" data-orig-size=\"1000,667\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Brandon Stengel&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;Brandon Stengel&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;221204_Loffler&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Loffler_StLouisHQ_Gensler2\" data-image-description=\"&lt;p&gt;image provided via wetransfer by Gensler PR Mia DiMeo&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Loffler Companies&#8217; new space features open catwalks, bold diagonal stairs, and floor-to-ceiling stadium seating and wide-open layout. Image by Brandon Stengel; courtesy of Gensler&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_2.jpg?w=1000\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_2.jpg?w=1000\" alt=\"Spacious modern office with people collaborating. Features open seating, a central staircase, and lofted area. Bright, airy space with sleek design.\" class=\"wp-image-1004770554\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_2.jpg 1000w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_2.jpg?resize=300,200 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_2.jpg?resize=768,512 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">Loffler Cos.&#8217; new space features open catwalks, bold diagonal stairs, floor-to-ceiling stadium seating and wide-open layouts. <em>Image by Brandon Stengel, courtesy of Gensler<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>From a design perspective, there&#8217;s a lot of opportunity in the architectural bones of retail buildings, according to Deanne Erpelding, managing director with Gensler\u2019s Minneapolis office. With generous floorplates and soaring ceilings, they can be reimagined as engaging workplaces that support collaboration, wellness and community.<\/p>\n\n\n\n<p>&#8220;End users are driving these transformations, prioritizing collaboration, amenities and culture-building experiences that enrich daily life,&#8221; Erpelding said. &#8220;With their scale and adaptability, retail-to-office conversions offer a blank slate for designers to create flexible, hospitality-forward environments that bring teams together and transform underused structures into vibrant workplaces.&#8221;<\/p>\n\n\n\n<p>Data from\u00a0a 2024 CBRE office conversion report\u00a0shows that developers are expected to remove\u00a023.3 million square feet\u00a0of office space this year\u201412.8 million through conversions and 10.5 million via demolitions. Although multifamily remains the dominant destination for conversion projects, retail-to-office initiatives are quietly gaining traction in select markets. <\/p>\n\n\n\n<p>Cities like\u00a0Dallas, Cleveland and Minneapolis\u00a0are leading the charge, thanks to favorable demographics, civic support and an oversupply of aging retail assets. In Cleveland, for example,\u00a08.4 percent of office inventory\u00a0is either undergoing or is planned for conversion, driven by decades of adaptive-reuse experience and limited land availability.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO: <\/strong><a href=\"https:\/\/www.commercialsearch.com\/news\/top-retail-trends-uncertainty-shifts-demand-dynamics-in-2025\/\">Top Retail Trends<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p>Still, retail-to-office conversions remain a niche segment of the broader repositioning movement.<\/p>\n\n\n\n<p>&#8220;Access to capital is the life blood of every real estate firm, so every strategy\u2014especially niche plays\u2014that we evaluate, must be viewed through the lens of institutional market appeal,&#8221; Smith said. &#8220;Filling out the capital stack for retail\u2011to\u2011office conversions hinges on a strategic, institutionally credible sponsor, especially given today\u2019s high interest rates and lenders\u2019 reluctance to finance distressed retail collateral.&#8221;<\/p>\n\n\n\n<p>To mitigate risk, Smith recommends early de-risking strategies such as securing a committed tenant, signing a long-term lease or leveraging public-private partnerships.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-execution-challenges-amp-financial-realities\">Execution, challenges &amp; financial realities<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a0e64e066cc9&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignleft size-full is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"620\" data-attachment-id=\"1004770556\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/the-rise-of-retail-to-office-conversions\/221204_loffler-3\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_3.jpg\" data-orig-size=\"800,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Brandon Stengel&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1675186630&quot;,&quot;copyright&quot;:&quot;Brandon Stengel&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;221204_Loffler&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Loffler_StLouisHQ_Gensler3\" data-image-description=\"&lt;p&gt;image provided via wetranfer by Gensler PR Mia DiMeo&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Loffler Companies&#8217; converted headquarters is a Class A asset that prioritize flexibility, wellness and connection. Image by Brandon Stengel; courtesy of Gensler&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_3.jpg?w=800\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_3.jpg\" alt=\"Modern office interior with a wooden staircase at the center. A woman sits on a gray sofa using a phone. Glass-walled meeting room visible on the left.\" class=\"wp-image-1004770556\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_3.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_3.jpg?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/Loffler_StengelBrandon_Gensler_3.jpg?resize=768,595 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">Loffler Cos.&#8217; converted headquarters is a Class A asset that prioritizes flexibility, wellness and connection. <em>Image by Brandon Stengel, courtesy of Gensler<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>From an investment perspective, retail-to-office conversions often pencil out more favorably than retail-to-multifamily redevelopments. One reason is the potential to prelease space before completion, which provides a measure of financial certainty that\u2019s rarely possible with multifamily projects.<\/p>\n\n\n\n<p>Beyond financial factors, multifamily conversions also demand major structural, mechanical and regulatory upgrades to meet strict code requirements.<\/p>\n\n\n\n<p>&#8220;As with any real estate project, it all comes down to location, purpose and tenants,&#8221; Smith emphasized. \u201cReal estate is a local market business.&#8221;<\/p>\n\n\n\n<p>Still, that doesn&#8217;t mean retail buildings, especially big-box stores, come without challenges. As Erpelding notes, mechanical, electrical and plumbing systems often need modernization, and HVAC systems must be reinforced to support open office occupancy.<\/p>\n\n\n\n<p>\u201cOccupancy codes require careful review, particularly when mezzanines or accessibility features are introduced,\u201d she said.<\/p>\n\n\n\n<p>Another major hurdle can be the lack of natural light in deep floorplates.<\/p>\n\n\n\n<p>&#8220;Strategic interventions like carving lightwells, adding windows or introducing new walls help bring daylight into the space,&#8221; Erpelding said. &#8220;Retail properties rarely offer the kind of arrival sequence expected in purpose-built office buildings, so we create hospitality-inspired lobbies to elevate the user experience.&#8221;<\/p>\n\n\n\n<p>That&#8217;s exactly what Gensler did for\u00a0Loffler Cos.&#8217; headquarters\u00a0in St. Louis Park, Minn. The team transformed a former Sam\u2019s Club into a Class A office with open catwalks, bold diagonal stairs and floor-to-ceiling stadium seating. Amenities such as a caf\u00e9, fitness center, yoga studio and golf simulator were added, as well as a 3,000-square-foot outdoor veranda.<\/p>\n\n\n\n<p>Another standout redevelopment that Gensler worked on is\u00a0The Dayton\u2019s Project, a century-old department store in downtown Minneapolis that was transformed into a mixed-use hub featuring a private lounge, library, fitness center and rooftop terrace.<\/p>\n\n\n\n<p>\u201cThese projects show how retail spaces of all scales can be reimagined as character-filled workplaces,\u201d said Erpelding.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-s-next\">What\u2019s next?<\/h2>\n\n\n\n<p>Looking ahead, Smith expects investor interest to stay measured. \u201cIt&#8217;s a <a href=\"https:\/\/www.commercialsearch.com\/news\/construction-industry-faces-uncertainty-challenges\/\">challenging capital raising environment<\/a> right now, which naturally slows momentum,&#8221; she said. <\/p>\n\n\n\n<p>Even so, there&#8217;s growing institutional interest in niche asset classes in general\u2014but this niche is nascent. For now, the size of the addressable market is simply unclear. <\/p>\n\n\n\n<p>&#8220;Proof of concept is likely needed before institutional investors make any substantive move\u2014meaning for now, conversions will largely remain one-off projects,&#8221; Smith noted. <\/p>\n\n\n<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a0e64e0678b8&quot;}\" data-wp-interactive=\"core\/image\" class=\"aligncenter size-full wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"619\" data-attachment-id=\"1004770557\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/the-rise-of-retail-to-office-conversions\/daytonproject_gensler\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/DaytonProject_Gensler.jpg\" data-orig-size=\"1000,619\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Tom Harris&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1626354937&quot;,&quot;copyright&quot;:&quot;(c) Tom Harris 2017&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"DaytonProject_Gensler\" data-image-description=\"&lt;p&gt;image provided via wetransfer by Gensler PR Mia DiMeo&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;The Dayton\u2019s Project, a century-old Minneapolis landmark, was reimagined by Gensler to combine historic charm with modern function. Image by Tom Harris,  courtesy of Gensler&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/DaytonProject_Gensler.jpg?w=1000\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/DaytonProject_Gensler.jpg\" alt=\"Modern lobby with black grid ceiling and large columns. Blurred motion of people walking, a person seated at a white reception desk. Calm ambiance.\" class=\"wp-image-1004770557\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/DaytonProject_Gensler.jpg 1000w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/DaytonProject_Gensler.jpg?resize=300,186 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/DaytonProject_Gensler.jpg?resize=768,475 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">The Dayton\u2019s Project, a century-old Minneapolis landmark, was reimagined by Gensler to combine historic charm with modern function. <em>Image by Tom Harris, courtesy of Gensler<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>Even as investors tread carefully, Erpelding sees greater potential for conversions within the broader office supply pipeline. While they won\u2019t solve every vacancy issue, these projects highlight the underlying adaptability of retail assets. Over time, she expects to see more creative hybrid models to emerge\u2014mixing office, coworking, health care, residential and other uses.<\/p>\n\n\n\n<p>Not everyone shares that optimism, though. CBRE Americas Retail Investor Leader Todd Caruso remains skeptical that retail-to-office conversions will become a widespread strategy, calling them more of a \u201cdefensive move\u201d than a lasting trend. <\/p>\n\n\n\n<p>Smith and Erpelding, however, see something larger at play. For them, conversions aren\u2019t merely about repurposing square footage\u2014they\u2019re about reimagining the role of place itself, and how work, life and community intersect.<\/p>\n\n\n\n<p>\u201cRetail is changing. It isn\u2019t dead. <a href=\"https:\/\/www.commercialsearch.com\/news\/the-new-realities-of-retail-development-design-2025\/\">With change comes opportunity<\/a>,&#8221; Smith said. <\/p>\n\n\n\n<p>For that opportunity to endure, conversions must be strategic, not reactive. The projects that succeed will be those that align with real market demand, community needs and long-term vision. And as cities look to breathe new life into downtowns\u2014and developers seek cost-effective, sustainable solutions\u2014retail-to-office conversions may well define the next chapter of commercial real estate and the <a href=\"https:\/\/www.commercialsearch.com\/news\/evolving-workspaces-tips-for-modern-organizations\/\">future of office space<\/a>: one shaped by creativity, pragmatism and purpose.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Can dead malls become tomorrow\u2019s dream offices? Some experts think so. <\/p>\n","protected":false},"author":741,"featured_media":1004770553,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,21808,23891,21747,21749,51037],"tags":[32789,33012],"class_list":["post-1004770551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-featured","category-national","category-office","category-retail","category-trends","tag-cbre","tag-gensler"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Rise of Retail-to-Office Conversions<\/title>\n<meta name=\"description\" content=\"A new wave of retail-to-office conversions is reimagining how we work, live and gather\u2014turning vacant retail into 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