Too many cubicles, too few homes spur incentives to convert offices to housing

HERNDON, Va. — Juan Ramirez, watching his dog play in Chandon Park here in suburban Virginia on a Saturday morning, tries to imagine the massive office buildings next to the park becoming apartments and townhouses.

“I guess it’s inevitable. People don’t use offices as much now. I hope it’s affordable. Maybe it’ll bring more young people to town, more taxes for parks,” said Ramirez, 38, who grew up in the area and returned recently to take a restaurant management job after living in Minnesota and Ohio.

Cities and suburbs around the country are struggling with vacant office space as remote work becomes an established post-pandemic reality. States are stepping in with tax breaks and zoning changes to help replace the unwanted cubicle farms with much-needed housing. In suburbs such as Herndon, the answer might be tearing down an office complex and replacing it with a residential building. In more urban environments it might mean renovating and retrofitting office buildings to create apartments.

“Office vacancy has climbed to a 30-year high and at the same time there’s a housing shortage. So naturally the question is, ‘Why can we not convert all these vacant office buildings into housing?’” said Jessica Morin, research director for CBRE, a commercial real estate firm. CBRE research shows converting offices to other uses, mostly housing, is set to peak this year at more than 20 million square feet, up from 6.3 million in 2021.

https://washingtonstatestandard.com/2024/04/17/too-many-cubicles-too-few-homes-spur-incentives-to-convert-offices-to-housing/