Adaptive reuse is becoming an increasingly popular solution for re-purposing office buildings that are outliving their usefulness. But how feasible are such conversions, especially to multifamily? This is one topic that will be addressed at the upcoming Connect Midwest: Multifamily & Adaptive Reuse Trends conference. To better understand the feasibility of adaptive reuse, questions were posed to one of the event’s presenters, Golub & Company’s Lee Golub.
Are we seeing more adaptive reuse versus ground-up construction when it comes to multifamily development? According to Lee Golub there has been much discussion about what should be done with existing office product that is either functionally obsolete or only partially leased due to remote work trends. However, it’s not always easy as many office floor plates may be deeper than residential floor plates and do not transition easily; other factors include sill heights and lobby makeups which need consideration before any conversion can take place. Additionally a building’s location needs assessing – does it fit in a residential neighborhood or would amenities compete with those found in modern apartment buildings? Finally if there are still occupants in the building they must also agree on sharing space with residents for any successful conversion project .
The economic feasibility of proposed projects must also be taken into account as costs tend towards being similar between adaptive reuse and ground up construction; however rents achieved from Class A apartments could prove difficult competition unless additional incentives like TIF dollars become available through initiatives such as Chicago’s LaSalle Street reimagined program .
Overall data from last 12 months shows strong rental markets across Chicago where occupancy rates have increased alongside lower concessions making this area a bright spot for developers delivering quality projects for investors , tenants partners and residents alike . Meet Lee Golub along with other experts at Connect Midwest: Multifamily & Adaptive Reuse Trends taking place June 13th 2023 at W Chicago City Center Hotel – click herefor more information on registration details
