Commercial real estate may have been hit hard this past year due to spikes in remote working and the emergence of "post-COVID ghost towns." However, has the opportunity for converting empty offices and hotels turned into a feeding ground for developers? Must the solution always result in some form of housing option? In a recent New York Times article C.J. Hughes reports on the possible future for offices and hotels that have been empty for a year due to the COVID-19 pandemic. While he opens with the notion of plans for transforming these "eerily empty commercial structures and converting them to housing of some kind and perhaps other uses," who actually benefits from these conversions? 

Beyond renovation costs and safety requirements, Hughes provides more details on the growing opportunities within New York commercial real estate. He connected with the managing principal of Metroloft Management, Nathan Berman, who shared, "Covid has expedited the ultimate repurposings," and these empty buildings have become "perfect targets" for developers to work with. Hughes continues to add that with support from the city to "breathing new life into struggling buildings," developers are jumping at the opportunity. 

"From corporate high-rises in the financial district to boutique lodgings near Central Park to mid-market accommodations in Midtown, real estate players are redeveloping or canvassing dozens of sites, according to those involved," explained Hughes. 

Abandoned office, hotel, and retail space conversions have happened in other cities as well. While some states like Massachusetts, for example, have experienced a different type of adaptive reuse boom, other states like California continue to struggle with building conversions and their hopes to tackling LA's affordable housing crisis.

Halfway through the article, Hughes inquires, "how easily can structures where people once pecked at computers and huddled in conference rooms become places to live?" He connected with architects like John Cetra, co-founder of CetraRuddy, Mark Ginsberg, a principal at Curtis + Ginsberg Architects, and Ted Houghton, the head of Gateway Housing, for answers. From understanding the potential "lease span" of spaces to building codes, converting empty buildings into housing has its obstacles. Hughes reminds us of New York's recent state budget that passed in April. He explains, "$100 million to reinvent hotels as affordable housing. Plus, $270 million in the federal American Rescue Plan is designated for the homeless in New York, and those funds could potentially help finance conversions as well."  

Hughes added, "so far, most of the attention has been trained on Manhattan, home to the city’s largest business and tourism districts, and where the pandemic has dealt the harshest blows. But hotels in Brooklyn, where prices for buildings are generally lower, are also getting a look. The conversions seem to fall into three categories: offices to housing, hotels to housing, and hotels turning into offices, though not for long stays but short-term sessions."

While the opportunity for building renewal is there, what does "breathing new life into struggling buildings" actually mean for cities, and more importantly, for their community? There have been examples of positive conversion projects that provide aid and growth for cities. However, it's been observed that many of these "well-pitched" conversions often work in favor of luxury housing projects that benefit a specific demographic.