The office sector is struggling. The overall vacancy rate increased by 30 basis points to 17.3 percent in fourth quarter 2022, reaching a 30-year high, according to CBRE Econometric Advisors. With unemployment standing at a near record low of 3.4 percent, the prospect of finding people to fill those empty buildings — at least the older ones — appears bleak.
At the same time, the United States has fallen 3.8 million units short of meeting housing needs, according to a study by the nonprofit research group Up for Growth. This has resulted in record-low apartment vacancies and sustained, elevated rent growth.
Looking at these two sets of statistics, it’s not surprising that more than one developer has said, “I have the solution. Just turn those underutilized office buildings into residential buildings. Problem solved!”
If only it was that ea
