Could Your Empty Office Turn Into Apartments? The Rise of Office-to-Residential Conversions

The pandemic may have ended, but its impact on urban real estate continues to reshape our cities. One of the most striking shifts? Once-bustling office buildings now sit half-empty—or even abandoned—as remote and hybrid work models become the new normal. And with housing shortages rising globally, a new idea is gaining traction: turning empty offices into apartments.

Yes, your former 9-to-5 cubicle hub might soon become someone’s new living room.

The concept of office-to-residential conversions is not just a creative real estate trend—it’s quickly becoming a practical solution to two of today’s biggest urban challenges: underused commercial property and skyrocketing demand for housing.

Let’s explore why this trend is growing, what’s driving it, and what the future might hold for your empty office space.

Why Offices Are Sitting Empty

When the world shifted to remote work in 2020, millions of offices were left vacant overnight. While some employees have returned in hybrid roles, many companies have downsized their physical footprints permanently.

According to a 2025 report from Cushman & Wakefield, office occupancy in major cities remains 30–50% below pre-pandemic levels, and long-term leases are being reconsidered or abandoned altogether.

This has created a commercial real estate crisis in cities like New York, San Francisco, London, and Toronto, where entire office towers sit unused, draining resources and devaluing assets.

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At the Same Time… Housing Demand Is Booming

While office demand has shrunk, the need for housing has never been higher. Cities across the globe are grappling with housing shortages, affordability issues, and rising homelessness.

Young professionals, students, and low-income families are particularly affected by rising rents and limited availability. The equation is simple: too many vacant office buildings + too few housing units = an opportunity.

This is where adaptive reuse comes in—the idea of taking an existing structure and repurposing it for a new function. In this case: turning workspaces into living spaces.

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How Office-to-Apartment Conversions Work

Transforming an office into a livable apartment building isn’t as easy as moving in a couch and bed—but it’s definitely possible.

Developers typically:

• Gut the interior layout to create residential units

• Install plumbing, kitchens, and private bathrooms

• Upgrade ventilation, lighting, and insulation

• Add residential elevators, lobbies, and amenities

Some buildings are better suited than others. Older office buildings with smaller floorplates and windows on multiple sides are easier to convert than massive corporate towers with limited natural light.

Cities like Washington D.C., Calgary, and Amsterdam have already launched incentive programs to support such conversions, offering tax breaks, grants, or zoning adjustments.

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Benefits of Office-to-Residential Conversions

There are several reasons this trend is gaining steam:

1. Revitalizing City Centers

With fewer office workers, downtown cores in many cities have grown quiet or even unsafe. Adding residents brings life, energy, and spending power back to local businesses and neighborhoods.

2. Sustainability

Reusing existing buildings reduces construction waste, energy usage, and carbon emissions—making it a more eco-friendly approach than tearing down and rebuilding.

3. Faster and Cheaper Than New Construction

While not always cheap, conversions are often quicker and more cost-effective than building brand-new apartments from the ground up, especially in land-scarce cities.

4. Meeting Housing Goals

Governments can help close housing gaps by partnering with developers to repurpose vacant commercial space, particularly for affordable or workforce housing.

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The Challenges Still Ahead

Of course, not every building is a good fit for residential conversion, and many challenges remain, including:

• Zoning restrictions: Some areas are legally designated for commercial use only.

• Cost and financing: Retrofits can be expensive, and investors may be hesitant.

• Design limitations: Offices often lack proper ventilation, plumbing, or window access required for apartments.

• Community resistance: Some residents may oppose changes to their neighborhood or the influx of new renters.

However, with the right incentives and public-private cooperation, these challenges are not insurmountable.

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Real-World Examples: Where It’s Already Happening

Several cities are leading the way in this urban reinvention:

• New York City: Mayor Eric Adams has proposed a plan to convert over 500 million square feet of underused office space into 20,000 apartments by 2030.

• Calgary, Canada: The city launched a $100M Downtown Development Incentive Program, converting over 1 million square feet of office space into residential.

• Amsterdam: A former IBM headquarters is now a sleek residential complex, complete with rooftop gardens and co-working spaces.

These projects show that with vision and innovation, cities can turn economic disruption into opportunity.

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Final Thoughts: Is Your Office Next?

As the modern workplace continues to evolve, many empty office buildings are no longer liabilities—they’re untapped assets. The shift toward office-to-residential conversions is more than a trend—it’s a creative solution to real-world problems.

For landlords, developers, and city planners, the time to act is now. For everyday citizens, this movement could mean more affordable housing options in vibrant urban centers.

So don’t be surprised if, one day soon, you walk into your old office building—and someone offers you a tour of their new apartment.