As commercial and office real estate markets continue to be upended by societal shifts touched off by the COVID-19 pandemic, some economists are looking to these now under-utilized spaces as potential avenues for bringing additional housing supplies online in American cities.
A recent report from nonprofit think tank RAND Corporation explains that 40% of respondents to a recent survey by the firm indicated that they are working from home, a figure that paints an uncertain picture for the millions of square feet of office spaces these workers are no longer utilizing. The report explains that many office spaces are grouped in specialized central business districts, where they draw from regional populations in order to fill their cubicles and open offices areas. With the massive shift in how and where people work currently underway, the RAND associate economist Jason Michael Ward offers that the crisis may "represent a once-in-a-lifetime opportunity to reallocate portions of the built environment away from declining commercial demand and toward the urgent demand for affordable housing."
Ward points toward successes in Los Angeles, were a decades old industrial conversion law has spurred the creation of over 14,000 residential units across the city's Downtown and Arts District neighborhoods. Though much of this development has been high-end and market-rate, Ward sees potential for a similar retrofit and reuse-based approach that could turn under-performing office towers into new affordable homes. Ward argues that this approach that may allow architects and developers to side-step the vicious rezoning and upzoning battles that have been taking place at the neighborhood level around the state.
With the demand for commercial construction set to drop precipitously over the next few years and increasingly meager prospects for the architecture industry in terms of ground-up projects on the horizon, could this approach help bring economic stability to the industry while also helping to address one of the nation's most persistent social needs?
8 Comments
Should shuttered office buildings be converted to housing?
Yes, but as alluded, not at high-end or market-rate. Those will not solve the housing crisis in big cities. There could be and will be a huge market for 2 bedroom 1.5 bath type of approx 800-1000 sq.ft. affordable ownership near the city centers.
There is a big vacancy rate at that size new apartment units in buildings popping up in many cities because of market rate rentals. In Los Angeles, those newly built apartments going for $2500 and up for a one bedroom. Recent job market can't feed that kind of gold rush. Do you think market rate will be adjusted downward?
It would be amazing someone builds those units at half of the market prices and already vacant apartments I described above become available at a developer's loss.
More affordable ownership, more affordable rent. Let the people live a little!
bring the Loft Law back!
let's have another Factory!(ies)
Make NYC Art Again!
It all depends on zoning and financing - once the government and banks get on board, developers and owners will join the fray.
Strange, no mentioning of Trump or Carson in this article? Here from good ol' archinect itself: https://archinect.com/news/art...
"President Donald Trump’s administration is looking at ways to convert a glut of commercial real estate resulting from the coronavirus pandemic and ensuing lockdowns, into affordable housing"
That nasty Trump wants to create more affordable housing, boo! Let's not mention him in this article, or give him credit for this, whatsoever!
I gave cable news journalists/twitter monkees a chance until Van Jones was criticized for supporting that presidents prison reform thingy, and a well qualified support if I remember well...remember only like 140 million people voted, assume 70 million not for the president, so you're talking 1/5 ish of the US population, and many of those people are sane, leaving maybe 10% who are very vocal...so if you think about it...loud people but not important.
Yes, but who pays for them?
It is probably a sign of the times that offices and housing will become one and the same. More people working from home, less jobs, etc. As long as there is a focus on maximizing space per person -- like a large live/work space. This is where there architecture happens! Think FLW home studio space....
If you did that with the Caesar Pelli designed sales Force tower in San Francisco, It would be just another multi-megabuck condos, no BMR
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