Across many large cities, street life at mid-day has changed. Gone are the pre-pandemic business workers streaming out of office buildings for a quick bite at lunch. Empty malls and commercial buildings are a common sight today in ways no one could have imagined two years ago.
At the same time, housing has gotten tighter and more expensive in those cities. A person might wonder why they don’t simply convert those empty office buildings into condos…solve two problems at once! It turns out, there are several reasons:
- Developer resistance to giving up the more lucrative commercial space in exchange for condo rents. Many large property holders are hoping commercial will come back into style.
- Office to condo conversions are very expensive. Consider the requirements to turn a “cubicle farm” into several small living spaces, each with its own access, bathroom and kitchen.
- Lack of viability. Converting a large space from one use into another may not work for some structures. It makes sense for old hotels, but not necessarily for office buildings.
Tearing down and starting over may be the solution we see in years to come as cities step in with financing help as an incentive.