Intro
In this episode of “99% Invisible,” the focus is on the conversion of vacant office spaces into housing units in New York City. With a major housing problem and a significant amount of office space currently vacant, the idea of repurposing these buildings has gained traction. However, actual projects are few and far between. This episode explores the challenges and potential solutions for converting offices into housing.
Main Takeaways
Converting Offices into Housing: A Hot Idea with Few Projects
- New York City is considering converting vacant office spaces into housing units.
- 18% of office space in Manhattan is currently vacant.
- The City of New York has a major housing problem with over 100,000 people using the municipal shelter system.
- Office to housing conversions are a hot idea in many big cities in North America.
- Converting an office into housing solves problems using one piece of property, but there are surprisingly few projects actually underway.
Challenges and Benefits of Office to Housing Conversions
- Adaptive reuse of office buildings into housing is appealing because it creates new housing without riling up neighborhood opposition.
- The greenest building is one that’s already built.
- Converting an office into housing solves problems using one piece of property.
- Office buildings are not designed the same way as apartment buildings, which means that developers have to redo a lot of the plumbing and other infrastructure.
- The floor plate of an office building is often much larger than that of an apartment building, which can be a major complication when converting.
- Despite the challenges, office to apartment conversions can be cheaper than building a new building from scratch.
- Old office buildings make for great conversion prospects because of their narrow shape and similarity to residential buildings.
- Modern office buildings have wider, deeper floor plates, making conversions complicated due to lack of natural light access.
- Converting from office to apartment triggers compliance with a different regulatory regime, making it difficult to do legally.
- In New York City, commercial buildings constructed after 1961 are not eligible for full conversion into housing due to a cutoff year rule.
Efforts and Policies to Encourage Conversions
- The Water Street conversion effort in Lower Manhattan is a mission that is impactful and huge.
- The city announced a plan to change the rule to spur more conversions, especially in midtown Manhattan.
- Developers would include affordable units if given incentives or tax breaks from the government.
- Office to apartment conversions are a good policy change, but won’t radically remake communities.
- Cities can encourage more conversions with tax breaks, new zoning rules, and public spending.
Previous Conversions and Alternate Uses
- In the 1990s, Lower Manhattan faced a real estate recession that caused the value of buildings to go down and the vacancy to be very high, with 30% or more in empty office spaces.
- The city responded by bringing in tax breaks and incentives to encourage the conversion of older office buildings into housing.
- This led to quite a few older office towers being converted into housing, including some iconic New York buildings such as the Woolworth building.
- The approach of adaptive reuse added some 20,000 or so units and about 40,000 new residents to Lower Manhattan, which changed the sense of a residential neighborhood.
- Today, it’s harder to come by buildings like the ones that were converted in the 90s, making a massive conversion of newer office towers unlikely.
- Abandoned office buildings in New York City are unlikely to be converted into housing due to expensive interventions required for light and air access.
- Alternate uses for these old office buildings include medical centers, vertical/urban farms, schools, and pet care.
Summary
Converting Offices into Housing: A Solution to New York City’s Housing Problem
New York City is facing a major housing problem, with over 100,000 people relying on the municipal shelter system. To address this issue, the city is considering converting vacant office spaces into housing units. This idea is not unique to New York City, as many big cities in North America are exploring office to housing conversions. The concept is appealing because it allows for the creation of new housing without facing opposition from neighborhoods. However, despite the potential benefits, there are surprisingly few projects currently underway. Converting an office into housing presents various challenges, including the need to redo plumbing and infrastructure, as well as the difference in floor plate sizes between office and apartment buildings. In New York City, there is a cutoff year rule that prevents commercial buildings constructed after 1961 from being fully converted into housing. However, the city has announced plans to change this rule to spur more conversions. While office to apartment conversions are a good policy change, they won’t radically remake communities. Cities can encourage more conversions through tax breaks, new zoning rules, and public spending. Previous conversions in the 1990s added thousands of units and residents to Lower Manhattan, but newer office towers are less likely to be converted due to the high costs of interventions required for light and air access. These abandoned office buildings can find alternate uses such as medical centers, vertical/urban farms, schools, and pet care facilities.
Conclusion
Converting vacant office spaces into housing units presents a potential solution to New York City’s housing problem. While the idea is gaining traction, there are challenges to overcome, including the need for infrastructure changes and compliance with different regulatory regimes. However, with the right policies and incentives, more office to apartment conversions can be encouraged. The previous conversions in the 1990s showcased the positive impact of adaptive reuse, adding new units and residents to Lower Manhattan. As the real estate market faces an inflection point with high office vacancies, exploring alternative uses for these spaces becomes crucial. By repurposing office buildings, cities can address housing needs and transform neighborhoods.
