Record-Breaking 71K Apartments Set to Emerge From Office Conversions

• The number of apartments set to be converted from office spaces has skyrocketed from 23,100 in 2022 to a record-breaking 70,700 in 2025.
• Office conversions now make up almost 42% of the nearly 169,000 apartments in future adaptive reuse projects.
• Adaptive reuse of newer buildings (built between the 1990s and 2010s) is on the rise, increasing from 1.27% of past projects to a projected 7% of future projects.
• The New York metro leads the nation in future office-to-apartment conversions with 8,310 units in its pipeline. It’s followed by last year’s #1, Washington, D.C. (6,533 units), and then Los Angeles in third place (4,388 units).

Office-to-apartment conversions are surging in popularity, with 2025 set to reach a record-breaking milestone of almost 71,000 units in the pipeline. This surge comes amid a nationwide shortage of apartments for rent and intense competition among renters. More than just creating housing, this trend reflects a shift toward sustainable, community-focused urban spaces that cater to the evolving lifestyles and priorities of modern American cities. So, as remote work continues to reshape the workplace and a significant share of the U.S. office space remains empty, repurposing offices into residential spaces offers a practical response to the growing need for housing.

Click here to see the interactive map of all metro areas converting office buildings to apartments.

While the volume of office-to-apartments conversions is growing, indicating increased interest in this type of retrofitting, the carryover of pending projects from one year to another is quite large. This suggests that other factors like conversion feasibility, construction costs, and local incentives come into play. Of the 55,339 office-to-apartments in some phase of development in January last year, only 3,709 were completed by December, leaving 51,630 units that carried over into 2025. This, combined with 19,021 new proposed conversions, represents a significant 28% year-over-year growth in the pipeline at the start of 2025.

Notably, innovative office-to-apartment conversions are by far the most popular type of adaptive reuse project, accounting for almost 42% of the 168,500 future conversion projects — a considerable growth from last year, when this category made up 38% of all conversions. This comes in the wake of rising vacancy rates in office buildings across the country, stagnating rents, as well as declining commercial property values. All of this helps make revamping offices into unique living spaces more financially viable.

Interestingly, this trend has seen remarkable growth in recent years. For instance, in 2022, the number of upcoming office-to-apartment conversions totaled 23,100 units before nearly doubling to 45,200 in 2023. Then, the growth continued in 2024, when the pipeline reached 55,300 future apartments. Now, in 2025, it’s climbed to an all-time high of 70,700 offices to be converted. This significant increase highlights the evolving nature of America’s cities that are driven by shifts in living preferences and changes in work habits. Thus, as office spaces are reimagined to meet the demand for housing, it’s clear that adaptive reuse is playing a key role in reshaping urban landscapes.

A notable shift is indicated by the increase in adaptive reuse projects involving newer buildings constructed between the 1990s and 2010s. While only 1.27% of completed projects utilized these newer buildings, the figure jumps to 7.03% for future projects. This increase suggests a growing preference for repurposing newer structures (likely because they meet modern standards and are easier to adapt for new uses).

At a national level, more than 1.2 billion square feet of office space (or 14.8% of total office inventory) is considered suitable for conversion, as sourced from the Conversion Feasibility Index (CFI) from CommercialEdge.

New York has the largest office-to-apartment conversions pipeline

The New York metro area leads the way with 8,310 office units set to be transformed into apartments. As a result, Washington, D.C., now ranks second with 6,533 future apartments to be converted after leading last year. It’s followed by Los Angeles in third place with 4,388 upcoming conversions, marking an impressive 80% increase from last year.

Not to be outdone, big urban hubs like Chicago, Dallas and Atlanta are also following the national trend and embracing office-to-apartment conversions.

To further promote conversion projects, many cities are offering financial incentives and streamlining the conversion process. For instance, in New York City, converted buildings with at least 25% affordable apartments can qualify for tax exemptions of up to 90%. Similarly, Washington, D.C., offers a Housing in Downtown program, which provides 20-year tax abatements for commercial-to-residential conversions. Furthermore, cities like Minneapolis and San Francisco are actively simplifying the approval process. Minneapolis recently removed public hearing requirements, while San Francisco has updated building codes, revised the Planning Code, and created a dedicated financing district to facilitate these conversions.

1. New York, NY

• Future office-to-apartment conversions as of 2025: 8,310 units
• Share of office-to-apartment conversions as of 2025: 53%
• Office space suitable for residential conversion: 305.4 million square feet

The New York metro area leads the nation in terms of office-to-apartment conversions with 8,310 of these innovative units currently in the works — a 59% increase from last year. It’s worth noting that NYC, in particular, boasts North America’s largest office market with nearly 730 million square feet of space. And, Manhattan alone contains more than 80% of the Big Apple’s office space. Plus, more than 305.4 million square feet out of the available office space in the area (or almost 46% of the metro’s total office inventory) holds the potential for more office-to-apartment conversions. A standout project is the transformation of the former global headquarters of Pfizer at 219 E 42nd St., which is expected to deliver 536 rental units. Coupled with the adjoining building at 235 E 42nd St., the conversion project will yield 1,600 apartments, a quarter of which will be affordable units.

2. Washington, D.C.

• Future office-to-apartment conversions as of 2025: 6,533 units
• Share of office-to-apartment conversions as of 2025: 62%
• Office space suitable for residential conversion: 61.3 million square feet

Washington, D.C., comes in second in terms of office-to-apartment conversions after falling out of the top spot since last year. Though suitable conversion candidates make up only 14% of the metro’s total inventory across 61.3 million square feet of office space, its 2025 pipeline features 6,533 future apartments for a 12% year-over-year increase. A key conversion in the area is the Universal Buildings project at 1825-1875 Connecticut Ave. NW. The property — totaling more than 1 million square feet — will be transformed into The Geneva, a residential complex containing 525 new apartments with at least 69 affordable units.

3. Los Angeles, CA

• Future office-to-apartment conversions as of 2025: 4,388 units
• Share of office-to-apartment conversions as of 2025: 49%
• Office space suitable for residential conversion: 83 million square feet

The wildfires in the Los Angeles area have devastated thousands of homes, worsening the metro’s already severe housing shortage. However, innovative office-to-apartment conversions are likely to address some of this increased demand, with almost 4,400 upcoming units, making up a 49% share of all future adaptive reuse projects. Additionally, more than 83 million square feet of office space (or 25% of the metro’s total office inventory) is deemed suitable to be revamped. To that end, one significant project is the ARCO Tower redevelopment, which will transform the 33-story office building at 1055 Seventh St. into 691 brand-new apartments.

4. Chicago, IL

• Future office-to-apartment conversions as of 2025: 3,606 units
• Share of office-to-apartment conversions as of 2025: 54%
• Office space suitable for residential conversion: 67.5 million square feet

With 3,600 units to be built, future office-to-apartment conversions in the Chicago metro area account for more than 54% of all adaptive reuse projects, reflecting a 28% increase year-over-year. Here, office buildings totaling more than 67.5 million square feet are considered suitable for such reinventions (or 18% of the metro’s total office inventory, exceeding the national average). One major project is 30 N LaSalle St., where 432,000 square feet of space will be revamped into 432 new apartments, including 130 affordable units.

5. Dallas, TX

• Future office-to-apartment conversions as of 2025: 2,752 units
• Share of office-to-apartment conversions as of 2025: 79%
• Office space suitable for residential conversion: 21.7 million square feet

The Dallas metro area is set to add more than 2,720 apartments converted from office spaces, making up 79% of all upcoming adaptive reuse projects. Even so, office-to-apartment conversions are down nearly 14% from last year, likely because of the limited share of office inventory suitable for conversions (6.4%, well below the 14.8% national average), totaling over 21.7 million square feet. In this case, Bryan Tower in Dallas stands out as a key project to watch: Built in 1973 and purchased by Woods Capital in 2022, the 1.1-million-square-foot glass tower will be transformed into 425 new apartments.

6. Atlanta, GA

• Future office-to-apartment conversions as of 2025: 2,239 units
• Share of office-to-apartment conversions as of 2025: 56%
• Office space suitable for residential conversion: 14.2 million square feet

The Atlanta metropolitan area will see 2,239 spaces come to life through office-to-apartment conversion projects, which make up 56% of all adaptive reuse projects underway. Boasting a 57% year-over-year increase in office conversions, Atlanta has emerged as a key player in the adaptive reuse landscape. But, only 14.2 million square feet’s worth of office buildings (6% of the metro’s total office inventory) is deemed suitable for future office-to-apartment conversions. A notable project is the transformation of the building at 2 Peachtree St., which is expected to create at least 600 new apartments within its 890,000 square feet of space.

7. Minneapolis, MN

• Future office-to-apartment conversions as of 2025: 1,873 units
• Share of office-to-apartment conversions as of 2025: 78%
• Office space suitable for residential conversion: 18 million square feet

Next, the Minneapolis metro has 1,873 apartments waiting to be transformed from office spaces. Of these, office-to-apartment conversions make up nearly 78% of all adaptive reuse projects in the area — a 40% increase from last year. Here, the transformation of the Medtronic Sullivan Lake Campus in Columbia Heights, MN, stands out. Spanning nearly 12 acres, the site will be repurposed into a mixed-use complex with an 85% residential and 15% commercial focus and a target density of 25 to 65 units per acre.

8. Charlotte, NC

• Future office-to-apartment conversions as of 2025: 1,787 units
• Share of office-to-apartment conversions as of 2025: 55%
• Office space suitable for residential conversion: 4.6 million square feet

Charlotte is experiencing a whopping growth in office-to-apartment conversions, with 1,787 units in the pipeline for 2025, effectively doubling its numbers from last year. However, only 4.6 million square feet of office space (or 5% of the metro’s total office inventory, well below the national average) is suitable for this type of transformation. One key example is the redevelopment of the 16-acre site at 2101 Rexford Road, which will accommodate up to 675 new apartments.

9. Cincinnati, OH

• Future office-to-apartment conversions as of 2025: 1,753 units
• Share of office-to-apartment conversions as of 2025: 63%
• Office space suitable for residential conversion: 11.9 million square feet

Cincinnati is keeping pace with 1,754 upcoming office-to-apartment conversions — making up 63% of all adaptive reuse projects and up 12% year-over-year. Plus, with almost 12 million square feet of office space (18% of the area’s total office inventory) deemed suitable for future transformations, the metro shows significant potential for more redevelopment. In particular, the rehabilitation of the Carew Tower is set for completion in 2027. This ambitious effort will transform the nearly 2,000-acre property into 385 new apartments.

10. Kansas City, MO

• Future office-to-apartment conversions as of 2025: 1,676 units
• Share of office-to-apartment conversions as of 2025: 55%
• Office space suitable for residential conversion: 8.3 million square feet

Likewise, the Kansas City metro area is set to welcome 1,676 apartments from offices for an 11% year-over-year increase. That represents almost 55% of all adaptive reuse projects in the area. Yet, only 8.3 million square feet of office space (10% of the metro’s office inventory, well below the national benchmark) is suitable for future conversions. A standout project is the reinventing of the Plaza Corporate Center, which will be transformed into 119 new apartments. Additionally, the nearby office parking garage will be turned into another 202 apartments.

Rounding out the top 20 are Phoenix (#11 with 1,634 units); Cleveland (#12 with 1,619 units); Bridgeport, CT (#13 with 1,473 units); Jacksonville, FL (#14 with 1,418 units); Denver (#15 with 1,398 units); Omaha, NE (#16 with 1,294 units); Pittsburgh (#17 with 1,250 units); Philadelphia (#18 with 1,232 units); Boston (#19 with 1,167 units); and Detroit (#20 with 962 units).

South dominates the US in apartments repurposed from offices

At the regional level, the South takes the lead in the office-to-apartment conversion trend, with more than 22,000 projects. Specifically, Washington, D.C.; Dallas; and Atlanta hold the podium in terms of upcoming apartments. The Northeast is next with more than 18,200 upcoming conversions. Of course, New York easily takes the crown here with its 8,310 future apartments. It’s followed by Bridgeport, CT, with 1,473 and Pittsburgh with 1,250.

The Midwest follows closely with a total of 18,038 future revamping projects. Here, Chicago takes the lead, with 3,606 upcoming residential units, followed by Minneapolis with 1,873 and Cincinnati with 1,753. Finally, the West trails behind with 12,291 units to be converted. Los Angeles is in first place in the region with 4,388 units, followed by Phoenix with 1,634 and Denver with 1,398.

Four metros more than double their pipelines since last year

Four of the top 20 metros recorded remarkable year-over-year growth in their office-to-apartment conversions with each metro’s pipeline more than doubling since 2024. More precisely, Charlotte, NC, experienced a twofold increase with 1,787 future conversions, thereby highlighting its commitment to adaptive reuse. Omaha, NE, also recorded a surge of 141% with an expected 1,294 of these lofty conversion projects.

Further south in Jacksonville, FL, the 1,418 future conversions represent a staggering 150% rise. At the same time, Boston saw the greatest pipeline increase in the top 20 — a whopping 160%. That’s as the number of upcoming conversion projects reached 1,167. These meteoric increases highlight the growing popularity of office-to-apartment conversions, as each metro sets out to transform underutilized spaces into much-needed housing solutions.

Office-to-apartment conversions exceed 50% of adaptive reuse projects in 16 top metros

In 16 of the top 20 metros featured in our ranking, office-to-apartment conversions make up more than 50% of their respective adaptive reuse pipelines. And, in major markets like Washington, D.C., and New York, these transformation projects account for 62% and 53% of projects, respectively, demonstrating their significant role in urban redevelopment.

Four metros stand out with shares exceeding 70% — Phoenix with 71%, Minneapolis at 78%, Dallas at 79%  and Omaha at a remarkable 85% — showcasing their strong commitment to repurposing vacant office buildings to address housing demand.

Pipeline of apartments created from offices shrinking in 3 metros

While most metros in our top 20 registered increases in office-to-apartment conversions, three stood out for their declines. First, the number of such reinvention projects in the Dallas metro dipped by nearly 14%. This is likely due to high interest rates in the area, as well as unfavorable floor plans or zoning regulations.

Similarly, the Cleveland metro area experienced a significant decline of nearly 20% in office-to-apartment conversions. In this case, the drop was likely influenced by factors such as high return-to-office rates, as well as financial hurdles and zoning constraints.

The Detroit metro also saw a decrease of 10% when it came to office-to-apartment conversions. This downturn can be attributed to high renovation costs for aging structures throughout the area, as well as structural issues and high-effort rezoning processes.

Methodology

• RentCafe.com is a nationwide apartment search website that enables renters to easily find apartments and houses for rent throughout the United States. This report was compiled by the RentCafe.com research team based on apartment data provided by our sister company, Yardi Matrix.
• Adaptive reuse refers to repurposing an existing building into rental apartments. This study is based on apartment data related to buildings containing 50 or more units.
• Future projects include projects that are under conversion, as well as planned and prospective redevelopment.
• Data is subject to change.
• Yardi Matrix defines completed buildings as those that have received a certification of occupancy, while those under conversion have yet to receive it or are currently being developed. Planned projects are actively engaged in the redevelopment approval process, while prospective redevelopments hold lower status in the probability of completion because they remain subject to entitlement approvals.
• Additionally, communities designated as prospective represent:
  • the intent of building on a respective piece of land
  • developments in project conception stages (design, surveys, environmental studies, neighborhood meetings, search for developers/investors, evaluation for zoning approval, etc.)
  • projects with conceptual plans submitted to planning/zoning authority for approval
  • projects temporarily placed on hold by the developer, holding a lower status in probability of completion.
• The share of buildings suitable for future conversions in each metro was calculated by combining the shares of Tier I and Tier II buildings, based on the Conversion Feasibility Index (CFI) from CommercialEdge. For New York, this metric was calculated the total office buildings that are good candidates for conversions in Manhattan, Brooklyn, Queens, the Bronx, and Staten Island.

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