The owners of 64 office buildings in New York City have inquired for assistance in converting their commercial properties into multifamily housing.
According to GlobeSt.com, the building owners are working with the city’s Office Conversion Accelerator Program, which consists of representatives from multiple municipal agencies that will coordinate the zoning feasibility of the proposed conversions. If it is determined the conversion can proceed, the program works to secure necessary permits required to transition the office properties into housing units.
The program was launched last summer and is part of Mayor Eric Adams’ goal to create up to 20,000 apartments in former office properties. According to the Department of City Planning, seven conversion projects were either completed or are currently underway, with most of the projects based in Lower Manhattan
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The Great PANDEMIC and it’s aftermath.
I can’t imagine that when the Principles and Officers involved in the initial Planning, and Development of all of these Properties. Didn’t already have a Plan B for use of the Buildings and Infrastructure in their developments. A plan in place should there be a world catastrophe. (Even something similar to our last financial crises starting in 2007.)
Especially a plan that generated revenue at the highest and best use. With goals of zero vacancy. The Local ,State and Federal Agencies that participated in these developments also play a large role in the initial plans, and development. They too expect to receive a great return. And a great cap rate for their investments.
Was lowering the interest rates during the pandemic. The plan all along to jumpstart this change in development from commercial to residential ? Just seemed coincidental to me. Professionally I believe we should have not decreased the lending rates, and should have forced the Commercial market to change their vacant commercial buildings.(All types) into residential housing.