Percentage of Office Conversions More than Double Previous Years, CBRE Reports

Originally published on October 5, 2023, by Anneliese Mahoney by the Mortgage Bankers Association.

CBRE, Dallas, found nearly 100 office-conversion projects are slated to be completed in major U.S. cities this year. That’s more than double the average of 41 per year from 2016 to 2022.

There are currently 60 million square feet of office conversions planned or underway or 1.4% of total U.S. office inventory. That number stood at 1.2% in the fourth quarter of 2022.

About half of those projects are for multifamily buildings, at 48%, followed by life sciences at 19%. Transformation into mixed-use space is 18% of ongoing or planned projects. There are smaller numbers of hotel and industrial conversions.

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