Dallas has emerged as one of the leading metros for transforming underutilized office space into new apartments, according to a recent report by RentCafe. This trend is part of larger plans in major cities to adapt to the post-pandemic world and address the pressing need for housing.
In 2021 alone, over 3,100 apartments in Dallas will be converted from office space with an additional 3,800 planned for the future. The city ranks third behind only New York City and Washington D.C. in terms of planned office conversions. Nationally, there are expected to be over 55,300 new units resulting from these conversions this year – a significant increase from just 12,100 last year – accounting for nearly two-fifths of all adaptive reuse projects totaling approximately147 ,000 apartments.
Compared with last year’s numbers , Dallas has seen a notable uptick in planned office conversions this year at an impressive growth rate of58 %. These converted units command higher rents than average downtown rentals at almost $2 ,700 per month compared with $2 ,300 per month on average.
This article was originally published on Connect CRE.
