### Office-to-Apartment Conversions Accelerate in Los Angeles and San Francisco
Office-to-apartment conversions are gaining momentum in California, particularly in Los Angeles and San Francisco, as developers seek solutions to the ongoing housing shortage while repurposing vacant office spaces. According to the California Apartment Association (CAA), Los Angeles ranks third in the nation for future office-to-apartment conversions, with the number of units in development increasing by 80% year-over-year.
Los Angeles has significant potential for additional conversions, with approximately 83 million square feet of office space—around 25% of the metro area’s total inventory—considered suitable for residential redevelopment. A notable example of this trend is the transformation of ARCO Tower, a 33-story office building located at 1055 Seventh Street, into residential apartments.
San Francisco, facing a similar rise in office vacancies, has taken proactive steps to encourage office-to-housing conversions. The city has updated its building codes, revised its Planning Code, and established a dedicated financing district to streamline approval processes and offer financial incentives for redevelopment projects.
As these efforts continue, both Los Angeles and San Francisco are poised to see significant changes in their urban landscapes, providing much-needed housing while addressing office vacancies.
