Submitted by rootbeer_racinette t3_zfxjr2 in nyc
atari_Pro t1_izf93n7 wrote
A lot of excuses as to why office buildings can’t become residential. You can bet those excuses will evaporate once the rates inch downwards and banks are happy to finance these conversions into high priced luxury real estate in prime Manhattan locations. Just wait on it.
olli_bombastico t1_izfm8ti wrote
I mean yes, everything boils down to cost and return on investment. How is that a surprise? I currently work on 8 feasibility studies for turning high-rise office spaces into residential buildings.
atari_Pro t1_izfmsb1 wrote
Not a surprise at all which is what I’m saying. It’s just lazy writing for FT to say it’s not a suitable alternative.
olli_bombastico t1_izfoxcc wrote
>Some obsolete office buildings may be converted to residential, which, in theory, would help to ease New York City’s chronic shortage of housing. But that is easier said than done, say many experts. It would require zoning changes. Even then, many office buildings may not be suitable candidates for residential conversions — either because their floor plates are too large, their elevators are wrongly situated, their windows do not open or their neighbourhoods are unappealing. To make such projects worthwhile, owners would have to sell at deep discounts.
They're not saying it's not a suitable alternative. They suggest there are many factors that owners need to consider before moving on with the projects. Why would they convert to residential buildings if there are no prospective tenants that can cover for their investment?
atari_Pro t1_izfpzfo wrote
If current trends continue some of these bldg owners are going to take a loss. There’s not really a way around that. Commercial real estate in the city has been insanely inflated for a long time. Over valued vs residential by like 4:1 or more in some areas. So, why would they sell if they can’t cover? To cut their losses is why. Gotta stop the bleeding somehow. Just my speculation but any guess is as good.
ehsurfskate t1_izhgq30 wrote
The thing to remember is they don’t need to stop the bleeding. They may be willing to wait a decade or more if they can borrow against the higher value of a commercial building.
AlphaNoodlz t1_izihxos wrote
It’s not really an excuse more like lacking basic infrastructural needs between commercial and residential day-to-day demands and available heating, plumbing, and electrical services. Not to mention life safety and egress issues. It’s a very difficult and exceptionally expensive architectural problem for office buildings in NYC to legally service the requirements of residential codes. You’re better off converting the slew of dead malls across the country into small scale city-block residential apartments, or old warehouses. I’m not saying we have an issue, we do, it’s just not something we can wave a magic wand at. At all.
reignnyday t1_izhfxp1 wrote
I mean they turned warehouses into luxury apts in tribeca so no reason they can’t do it for these buildings too
ForeignWin9265 t1_izg8ojz wrote
A lot of offices where converted to apartments in downtown after 9/11, idk why people keep saying it’s impossible.
noahsilv t1_izgj7xz wrote
Have you been in those apartments though? They kinda suck
Viewing a single comment thread. View all comments