As the work-from-home revolution continues to shift the real estate landscape, a new global trend is emerging: converting vacant office buildings into residential spaces. Once bustling office towers, many of which now sit empty, are finding new life as trendy apartments, condos, and even affordable housing units. This trend is transforming not just cities in the U.S., but across the world, with countries like Canada, Australia, and the U.K. leading the charge.
As remote work solidifies itself as a permanent part of our economy, many urban office buildings are simply no longer needed for their original purpose. Converting these spaces into residential housing is more than just a smart use of resources—it’s helping to solve housing shortages, revitalize city centers, and support sustainable urban development.
Bob Waun, co-founder of DIRT Realty, has been closely following this trend. "We’ve seen a huge increase in demand for office-to-residential conversions," Waun says. "This isn't just happening in New York or LA—it’s a global movement. And as these conversions succeed, they’re proving that with the right investment, we can turn underutilized space into vibrant communities."
Why Converting Office Towers Is a Great Trend
With office vacancy rates soaring in many cities due to the shift to remote and hybrid work, adaptive reuse of office buildings is proving to be a perfect solution to several urban challenges:
Addressing Housing Shortages: Many cities face a significant housing shortage, particularly affordable housing. Converting unused office space into residential units can quickly add housing stock without the time, cost, and environmental impact of building from scratch.
Revitalizing Urban Areas: Office buildings that sit empty for too long can lead to urban decay. By converting these buildings into housing, cities can breathe new life into business districts, bringing people back downtown to live, dine, and shop. It helps create mixed-use neighborhoods that are vibrant 24/7, not just during office hours.
Sustainable Development: Adaptive reuse is far more sustainable than demolishing old buildings or building new ones. It reduces construction waste, conserves materials, and minimizes the environmental impact of new developments. According to the Environmental Protection Agency (EPA), building reuse offers up to 75% savings in embodied carbon emissions compared to new construction.
Better Use of Resources: Many office buildings are centrally located with access to public transportation, shops, and entertainment. Converting these prime properties into housing makes sense from both a practical and economic standpoint.
As Waun puts it, "Converting office space to residential is like unlocking hidden potential. These buildings are in fantastic locations, and now they can meet the housing demand that cities so desperately need."
Success Stories Around the World
This isn't just a U.S. phenomenon. Several global cities are leading the way in turning vacant offices into vibrant residential spaces.
1. Canada: The Postmark Apartments, Vancouver
In Vancouver, where housing demand is sky-high, office-to-residential conversions have become a critical part of the city’s housing strategy. One notable project is the Postmark Apartments. Located in the Mount Pleasant neighborhood, the former post office building has been transformed into high-end apartments. This conversion has not only added much-needed housing but also preserved a historic landmark in the process. Learn more about this project at Postmark Apartments.
2. Australia: Olderfleet Building, Melbourne
In Melbourne, adaptive reuse has played a significant role in the city’s urban renewal efforts. The Olderfleet Building, once a grand office space, has been reimagined into a multi-purpose building with both residential units and commercial spaces. This project has become a symbol of how historic office buildings can be successfully modernized for today’s housing needs while retaining their architectural charm. More details can be found at Olderfleet Melbourne.
3. U.K.: The Shard’s Conversion Plans, London
London, known for its iconic skyline, is no stranger to office-to-residential conversions. In fact, The Shard, one of the city’s most recognizable office towers, is planning to convert several floors into luxury apartments due to increased demand for residential space. This blend of office and residential use is setting the standard for what adaptive reuse can look like in a high-demand real estate market. Learn more about London's office conversions from The Shard's website.
4. Singapore: International Plaza
In Singapore, where space is at a premium, developers have begun turning older office buildings into residential units. One example is International Plaza, which is currently in the process of a multi-billion-dollar transformation. This iconic office building is being repurposed into a mix of residential, retail, and hotel spaces, reflecting Singapore's bold vision for urban redevelopment. Read more about this project at Singapore International Plaza.
What Will Become of Office Space?
With many companies downsizing or eliminating their office footprint, the future of office space is uncertain. Some cities, especially those with high demand for housing, will likely continue to embrace conversions as a long-term solution. While not every office building is suited for residential use, those that are well-located and structurally sound are prime candidates for conversion.
The rise of remote work doesn’t mean the death of all office spaces, though. Some buildings may transition into flexible workspaces or co-working hubs, while others could focus on mixed-use development, incorporating a combination of residential, office, and retail space to meet a range of needs.
Could Malls Be Converted into Senior Homes?
As brick-and-mortar retail declines and shopping malls struggle to survive, many are asking: Could these massive retail spaces be converted into something else entirely, such as senior living communities?
The answer is a resounding yes—and in fact, it's already happening. Several malls across the U.S. are being reimagined as housing for senior citizens. The wide corridors, accessible layouts, and vast open spaces make malls ideal candidates for senior living developments. Additionally, malls are often located near transportation and healthcare facilities, making them attractive for the aging population.
For example, in California, the Vallco Shopping Mall in Cupertino is undergoing a conversion into The Rise, a mixed-use development that includes senior housing, apartments, and commercial spaces. This project showcases how underused retail space can be converted into thriving communities. Learn more about this project at The Rise Cupertino.
"We're not just seeing office-to-residential conversions," says Waun. "We're seeing old malls and industrial spaces repurposed for things like senior living and affordable housing. It’s all part of a bigger trend of rethinking how we use our built environment."
Challenges and Opportunities
Of course, adaptive reuse comes with challenges, especially when converting office buildings or malls to residential use. Structural issues, zoning restrictions, and retrofitting buildings to meet residential codes can all add complexity to these projects. However, many cities are beginning to streamline zoning regulations to make these conversions easier, recognizing the urgent need for housing.
At the same time, the potential upside is significant. With growing interest in sustainable development, adaptive reuse offers a way to conserve resources while addressing critical urban issues. Cities that embrace these projects stand to benefit from increased housing supply, more vibrant urban areas, and a renewed sense of community.
DIRT Realty is committed to pushing forward innovative solutions for urban revitalization. "We’ve worked on projects where malls became senior homes and office towers became thriving residential hubs," Waun adds. "This is just the beginning of a much larger movement toward smarter, more sustainable cities."
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