Gensler Principal Steven Paynter shares an update announcing important statistical findings related to his firm’s work surrounding the adaptive reuse and conversion of office buildings worldwide.

The data report has been updated to reflect changes in office conversions. The firm shares that an estimate of only 25% of buildings (from Gensler's original assessment) are suitable for conversion. This is a decrease from the 33% figure that was reported in January as Gensler began marketing its proprietary metric of office conversions.

The new study was expanded to cover some 1,000 buildings, an increase from their previous analysis of 300 buildings. Paynter and his team now report that conversion is "an unprecedented opportunity to create new residential stock quickly, sustainably, and at a 30% lower cost than new construction."

The assessment also provided some interesting details related to the spatial potentials of antiquated office layouts. As Paynter explains in Gensler's Research and Insights blog post, “All the features that result in an unpleasant office make for an excellent multifamily product. For example, a floor-to-floor height that’s typical of a Class C building is approximately 12 feet. Today, that’s considered oppressively low, as it translates to 8-foot ceilings in the office. With all the office ducts, lights, and ceilings removed, it can create a soaring 11-foot clear height in a residential building, which is considered luxurious.”

This “surprise” finding correlates with the relatively new definition of a “Goldilocks zone,” a set of architectural parameters that identify the optimal conditions for a new residential space based on floor plate size, the building’s form and envelope, and ceiling heights as described above. 

Despite the statistical grain of salt, the firm feels strongly that we will inevitably see the necessary conversions done at a mass scale. Paynter says they are consulting with over a dozen cities to help them achieve benchmarks and stabilize their downtown cores. 

"Our study, and now our completed projects, have proven the case for conversions, but more than that, they have answered the question about which buildings can really be converted and how. What we’re offering is not a silver bullet for all buildings, nor does it need to be. The office still has its place, but we have an unprecedented opportunity to create incredible new residential stock quickly, sustainably, and at a 30% lower cost than new construction," he wrote finally.

A look forward to the 2024 conversion market can be found here via CBRE.