A recent report from RentCafe says interest in converting older buildings into residences remains high and that adaptive reuse apartments are poised for impressive growth in the upcoming years. Interestingly, they report that 122k rental apartments are currently undergoing conversion, 45k, of which are the result of office repurposing. However they do point out that while 2019 & 2020 were peak years for adaptive reuse, it appears that the number of projects converted in 2021 and 2022 didn’t match the initial excitement. Indeed…
Some Key Points:
- A total of 10,090 apartments were converted in 2022.
- In the same timeframe, the number of office conversions experienced a 15% slowdown, resulting in 3,390 apartments being retrofitted.
- Former hotels experienced a significant surge, with a record-breaking 43% increase, transforming 2,954 apartments.
- The future of adaptive reuse projects looks promising, with a projected 63% increase in upcoming projects. Currently, 122,000 apartments are undergoing conversion, with offices leading the way with 45,000 apartments expected.