According to a recent report by PropertyShark, New York City boasts an impressive 85 million square feet of office space, primarily located in Manhattan. This top-tier group consists of 754 buildings and accounts for 31% of the city’s total office stock, but only holds 15% of its overall office space.
However, there is still potential for residential conversion in an additional 34% of NYC’s office space. While these properties may come with design and structural limitations that make conversion more challenging, they still offer opportunities for development. The remaining 51%, however, presents significant obstacles and high costs when it comes to converting them into residential units.
The report also highlights ten neighborhoods – all except one located in Manhattan – that hold approximately three-quarters (74%) of the city’s most desirable spaces for converting offices into residences. In the next three years alone, these neighborhoods are expected to see $4 billion worth of maturing loans on their top convertible office buildings. Of this amount, $952 million will mature in just one year -2025.
In summary: Nearly one-third (31%)of NYC’s total numberofofficebuildings have strong potentialforconversiontoresidential use accordingtoPropertyShark.The remainingofficebuildingsmay posechallengesandhigher coststo convert,buttherearestillopportunitiesfordevelopmentintheseareas.TenneighborhoodsinManhattanholdthemajority(74%)ofthebestspacesforcoversion,andtheywillsee$4billioninduepaymentsontheirtopconvertibleofficespacesoverthenextthreeyears,$952millionbeingduein2025alone.Thisreportshowsthepromisingpotentialfornyc’sofficebuildingstoberepurposedasresidencesinthefuture.
