Title page 1

Contents 6

Acknowledgments 4

Executive Summary 15

1. Introduction: Understanding Office-to-Residential Conversion 18

A. A Case Study Approach 19

B. Key Lessons Learned About Conversion Activity 20

C. State and Local Tools to Facilitate Office-to-Residential Conversion 21

D. Policy Choices 22

E. Translating Six Case Studies to Other Cities Across the Nation 23

F. What Is Included in this Report 24

2. Case Studies 25

Pittsburgh (Pennsylvania) 25

St. Louis (Missouri) 25

Houston (Texas) 25

Stamford (Connecticut) 26

Los Angeles (California) 26

Winston-Salem (North Carolina) 27

3. Financial Feasibility Analysis 27

A. Introduction 27

B. Analytical Framework 28

C. Limitations 29

D. How Findings Are Presented 30

E. Takeaways 31

4. Community Guide 43

A. State and Local Policy Tools 43

A (a) Remove Minimum Parking Mandates 44

A (b) Allow Responsible Single Stair Egress 44

A (c) Lift Floor Area Ratio and Density Limits 45

A (d) Modify State Policies for Low Income Housing Tax Credit Allocations 45

A (e) Create a Special Permitting Process for Office-to-Residential Conversions 46

A (f) Modify Zoning for By-Right Conversion 46

B. State and Local Financial Tools 47

B (a) Reduce Construction Costs Through Tax Credits 47

B (b) Tax Reductions 48

B (c) Low-Cost Loan Programs 49

B (d) Direct Cash Transfers 49

C. Increase in Revenue 50

C (a) Direct Incentives 50

C (b) Offering Vouchers or Other Rent Guarantees 50

C (c) Building Improvements 51

C (d) Neighborhood Improvements 51

D. The Federal Role in Office-to-Residential Conversion 52

D (a) Reforming DOT Programs 52

D (b) Revitalizing Downtowns and Main Streets Act 54

E. Final Thoughts 54

E (a) A Policy Toolkit 54

Appendix A - Six Case Studies 56

Turning Pittsburgh's commercial core into a livable neighborhood 56

Reversing an 'urban doom loop' in St. Louis through office-to-residential conversion 96

Adapting office use to build housing resilience in Houston 136

Converting offices to housing as a portal to supply in Stamford, Connecticut 173

Demystifying market fundamentals of office-to-residential conversion in Los Angeles 207

Adapting the built environment to an ever-changing economy in Winston-Salem, North Carolina 249

Appendix B - Financial Analysis 283

References 285

Exhibits 8

Exhibit 1. Activity Centers in the Los Angeles Metropolitan Area 16

Exhibit 2. City Motivations for Office-to-Residential Conversion 19

Exhibit 3. Office-to-Residential Conversion Financial Feasibility Decision Framework 22

Exhibit 4. Sensitivity Table Legend 31

Exhibit 5. Net Present Value of Converted Buildings, per Gross Square Foot 32

Exhibit 6. The Railway Exchange Building 38

Exhibit 7. Railway Exchange Building Information 38

Exhibit 8. Railway Exchange Building: Office Characteristics 38

Exhibit 9. Residential Characteristics, Without Incentives 39

Exhibit 10. Residential Characteristics, With Incentives 39

Exhibit 11. Conversion Characteristics, No Historic Tax Credits 40

Exhibit 12. Conversion Characteristics, Historic Tax Credits Used 40

Exhibit 13. Financing Assumptions, Without Incentives 40

Exhibit 14. Financing Assumptions, Local Financial Incentives 40

Exhibit 15. Financial Feasibility Results, Without Policy Levers 41

Exhibit 16. Financial Feasibility Results, With Policy Levers 41

Exhibit 17. Sensitivity Tables, Net Present Value per Square Foot, Residential Rent, and Vacancy, Without Policy Levers 41

Exhibit 18. Sensitivity Tables, Net Present Value per Square Foot, Residential Rent and Vacancy, With Policy Levers 42

Appendix Exhibits 8

Exhibit A-1. Housing Inventory Growth Relative to Population Growth, City of Pittsburgh (2000 to 2020) 57

Exhibit A-2. Downtown Pittsburgh 58

Exhibit A-3. Downtown Pittsburgh Office Inventory (2024) 59

Exhibit A-4. Downtown Pittsburgh Multifamily Inventory (2024) 60

Exhibit A-5. Downtown Pittsburgh Office Versus Residential Square Footage 61

Exhibit A-6. Office Vacancy Rates 62

Exhibit A-7. Office Gross Rent (per Square Foot) Trajectory 63

Exhibit A-8. Aggregate Square Footage of Office Space Leased 64

Exhibit A-9. Downtown Pittsburgh Office Buildings by Vacancy Share, 2024 65

Exhibit A-10. Pittsburgh Downtown Multifamily Market History (2014 to 2024) 66

Exhibit A-11. Multifamily Gross Rent (per square foot) Trajectory 67

Exhibit A-12. City of Pittsburgh Percentage of Units by Area Median Income Category (2022) 68

Exhibit A-13. Pittsburgh Area Median Income by Household Size 68

Exhibit A-14. Demographics and Poverty Rate in Pittsburgh's Commercial Core, Citywide, and Statewide 69

Exhibit A-15. State and Local Financing Tools 73

Exhibit A-16. Map of Conversion Activity in Pittsburgh 75

Exhibit A-17. The Ivy Residences Building Information 77

Exhibit A-18. The Ivy Residences Capital Stack 78

Exhibit A-19. 933 Penn Avenue building information 81

Exhibit A-20. 933 Penn Avenue Potential Capital Stack 82

Exhibit A-21. Assessment of Office-to-Residential Conversion Potential in Pittsburgh 84

Exhibit A-22. 525 William Penn Place Postconversion Typical Floor Plate 87

Exhibit A-23. 525 William Penn Place Postconversion Information 88

Exhibit A-24. 601 Grant Street Postconversion Typical Floor Plate 90

Exhibit A-25. 601 Grant Street Postconversion Information 91

Exhibit A-26. 925 Liberty Avenue Postconversion Typical Floor Plate 93

Exhibit A-27. 925 Liberty Avenue Postconversion Information 94

Exhibit A-28. Downtown and Citywide Foot Traffic, Six Cities 95

Exhibit A-29. Housing Inventory Growth Relative to Population Growth 98

Exhibit A-30. Downtown St. Louis 99

Exhibit A-31. Downtown St. Louis Office Inventory (2024) 100

Exhibit A-32. Downtown St. Louis Multifamily Inventory (2024) 101

Exhibit A-33. Downtown St. Louis Office Versus Residential Square Footage 102

Exhibit A-34. Office Vacancy Rates 103

Exhibit A-35. Office Gross Rent (per Square Foot) Trajectory 104

Exhibit A-36. Aggregate Square Footage of Office Space Leased 105

Exhibit A-37. Downtown St. Louis Office Buildings by Vacancy Share 106

Exhibit A-38. Multifamily Gross Rent (per Square Foot) Trajectory 107

Exhibit A-39. City of St. Louis Percentage of Units by Area Median Income Category (2022) 108

Exhibit A-40. St. Louis Area Median Income by Household Size 108

Exhibit A-41. St. Louis Downtown Multifamily Market History (2014 to 2024) 109

Exhibit A-42. Demographics and Poverty Rate in St. Louis' Commercial Core, Citywide, and Statewide 110

Exhibit A-43. State and Local Financing Tools 113

Exhibit A-44. Map of Office Conversion Activity in St. Louis 115

Exhibit A-45. The Victor Building Information 116

Exhibit A-46. The Victor Capital Stack 118

Exhibit A-47. The Marquette Building Information 120

Exhibit A-48. The Marquette Capital Stack 121

Exhibit A-49. Assessment of office-to-residential conversion potential in St. Louis 122

Exhibit A-50. 601-615 Olive Street Postconversion Information 126

Exhibit A-51. 601-615 Olive Street Postconversion Typical Floor Plate 126

Exhibit A-52. 601-615 Olive Street Postconversion Typical Floor Plate 127

Exhibit A-53. 601-615 Olive Street Postconversion Typical Floor Plate 128

Exhibit A-54. 909 Chestnut Street Postconversion Information 130

Exhibit A-55. 909 Chestnut Street Postconversion Typical Floor Plate 131

Exhibit A-56. Market Street Postconversion Information 133

Exhibit A-57. 1010 Market Street Postconversion Typical Floor Plate 134

Exhibit A-58. Downtown and Citywide Foot Traffic, Six Cities 135

Exhibit A-59. Housing Inventory Growth Relative to Population Growth 137

Exhibit A-60. Downtown Houston 139

Exhibit A-61. Downtown Houston Office Inventory (2024) 140

Exhibit A-62. Downtown Houston Multifamily Inventory (2024) 140

Exhibit A-63. Downtown Houston Office Versus Residential Square Footage 141

Exhibit A-64. Office Vacancy Rates 142

Exhibit A-65. Office Gross Rent (per square foot) Trajectory 143

Exhibit A-66. Aggregate Square Footage of Office Space Leased 144

Exhibit A-67. Downtown Houston Office Buildings by Vacancy Share 145

Exhibit A-68. Multifamily Gross Rent (per square foot) Trajectory 146

Exhibit A-69. City of Houston Percentage of Units by AMI Category (2022) 146

Exhibit A-70. Houston Area Median Income by Household Size 147

Exhibit A-71. Houston Downtown Multifamily Market History (2014 to 2024) 147

Exhibit A-72. Demographics and Poverty Rate in Houston's Commercial Core, Citywide, and Statewide 148

Exhibit A-73. State and Local Financing Tools 152

Exhibit A-74. Map of Conversion Activity in Houston 153

Exhibit A-75. Elev8 Building Information 156

Exhibit A-76. Elev8 Capital Stack 157

Exhibit A-77. JW Marriott Building Information 159

Exhibit A-78. JW Marriott Capital Stack 160

Exhibit A-79. Assessment of Office-to-Residential Conversion Potential in Houston 162

Exhibit A-80. 1001 Fannin Street Postconversion Information 165

Exhibit A-81. 1001 Fannin Street Postconversion Typical Floor Plate 166

Exhibit A-82. 808 Travis Street Postconversion Information 168

Exhibit A-83. 808 Travis Street Postconversion Typical Floor Plate 169

Exhibit A-84. 3000 Post Oak Boulevard Postconversion Information 171

Exhibit A-85. 3000 Post Oak Boulevard Postconversion Typical Floor Plate 171

Exhibit A-86. Downtown and Citywide Foot Traffic, Six Cities 172

Exhibit A-87. Housing Inventory Growth Relative to Population Growth City of Stamford (2000 to 2020) 175

Exhibit A-88. Stamford Commercial Core 177

Exhibit A-89. Stamford Commercial Core Office Inventory (2024) 178

Exhibit A-90. Stamford Commercial Core Multifamily Inventory (2024) 178

Exhibit A-91. Stamford Commercial Core Office Versus Residential Square Footage 179

Exhibit A-92. Office Vacancy Rates 180

Exhibit A-93. Office Gross Rent (per square foot) Trajectory 181

Exhibit A-94. Aggregate Square Footage of Office Space Leased 182

Exhibit A-95. Stamford Commercial Core Office Buildings by Vacancy Share, 2024 183

Exhibit A-96. Multifamily Gross Rent (per square foot) Trajectory 184

Exhibit A-97. Stamford Commercial Core Multifamily Market History (2014 to 2024) 185

Exhibit A-98. City of Stamford Percentage of Units by AMI Category (2022) 186

Exhibit A-99. Stamford Area Median Income by Household Size 186

Exhibit A-100. Demographics and Poverty Rate in Stamford's Commercial Core, Citywide, and Statewide 187

Exhibit A-101. State and Local Financing Tools 190

Exhibit A-102. Map of Conversion Activity in Stamford 191

Exhibit A-103. Seaview House Marina Building Information 192

Exhibit A-104. Seaview House Marina Capital Stack 193

Exhibit A-105. 84 West Park Place Building Information 195

Exhibit A-106. 84 West Park Place Capital Stack 196

Exhibit A-107. Assessment of Office-to-Residential Conversion Potential in Stamford 197

Exhibit A-108. 400 Atlantic Street Postconversion Information 199

Exhibit A-109. 400 Atlantic Street Postconversion Typical Floor Plate 200

Exhibit A-110. 1600 Summer Street Postconversion Information 202

Exhibit A-111. 1600 Summer Street Postconversion Typical Floor Plate 202

Exhibit A-112. 30 Oak Street Postconversion Information 204

Exhibit A-113. 30 Oak Street Postconversion Typical Floor Plate 204

Exhibit A-114. Downtown and Citywide Foot Traffic, Six Cities 205

Exhibit A-115. Housing Inventory Growth Relative to Population Growth 209

Exhibit A-116. The Los Angeles Study Area 211

Exhibit A-117. Los Angeles Study Area Office Inventory (2024) 212

Exhibit A-118. Los Angeles Study Area Multifamily Inventory (2024) 213

Exhibit A-119. Los Angeles Study Area Office Versus Residential Square Footage 214

Exhibit A-120. Office Vacancy Rates 216

Exhibit A-121. Office Buildings by Vacancy Rates 217

Exhibit A-122. Aggregate Square Footage of Office Space Leased 217

Exhibit A-123. Office gross rent (per square foot) trajectory 218

Exhibit A-124. Los Angeles Study Are Office Rents Versus Higher-Demand Office Submarket, 2024 219

Exhibit A-125. Multifamily Market History 220

Exhibit A-126. Comparative Rent Growth Proportions 221

Exhibit A-127. Apartment Effective Rent per Square Foot 222

Exhibit A-128. Percentage of Units by AMI Category 223

Exhibit A-129. Los Angeles Area Median Income by Household Size 223

Exhibit A-130. Demographics and Poverty Rate in Los Angeles Study Area, Citywide, and Statewide 224

Exhibit A-131. State and Local Financing Tools 227

Exhibit A-132. Map of Conversion Activity in Los Angeles 229

Exhibit A-133. 701 South Hudson Avenue Building Information 231

Exhibit A-134. 701 South Hudson Avenue Capital Stack 232

Exhibit A-135. 354 South Spring Street Building Information 234

Exhibit A-136. Assessment of Office-to-Residential Conversion Potential in Los Angeles 236

Exhibit A-137. 707 Wilshire Boulevard Postconversion Typical Floor Plate 239

Exhibit A-138. 707 Wilshire Boulevard Postconversion Information 240

Exhibit A-139. 445 South Figueroa Street Postconversion Typical Floor Plate 242

Exhibit A-140. 445 South Figueroa Street Postconversion Information 243

Exhibit A-141. 660 South Figueroa Street Postconversion Information 245

Exhibit A-142. 660 South Figueroa Street Postconversion Typical Floor Plate 246

Exhibit A-143. Downtown and Citywide Foot Traffic, Six Cities 247

Exhibit A-144. Housing Inventory Growth Relative to Population Growth 251

Exhibit A-145. Downtown Winston-Salem 252

Exhibit A-146. Downtown Winston-Salem Office Inventory (2024) 253

Exhibit A-147. Downtown Winston-Salem Multifamily Inventory (2024) 253

Exhibit A-148. Downtown Winston-Salem Offices Versus Residential Square Footage 254

Exhibit A-149. Office Vacancy Rates 255

Exhibit A-150. Office Grow Rent (per square foot) Trajectory 256

Exhibit A-151. Aggregate Square Footage of Office Space Leased 257

Exhibit A-152. Downtown Winston-Salem Office Buildings by Vacancy Share 258

Exhibit A-153. Multifamily Gross Rent (per square foot) Trajectory 259

Exhibit A-154. City of Winston-Salem Percentage of Units by AMI Category 260

Exhibit A-155. Winston-Salem Area Median Income by Household Size 260

Exhibit A-156. Winston-Salem downtown Multifamily Market History (2014 to 2024) 261

Exhibit A-157. Demographics and Poverty Rate in Winston-Salem's Downtown, Citywide, and Statewide 262

Exhibit A-158. State and Local Financing Tools 266

Exhibit A-159. Map of Conversion Activity in Winston-Salem 267

Exhibit A-160. The Residences at the R.J. Reynolds Building Information 269

Exhibit A-161. The Residences at the R.J. Reynolds Building Capital Stack 270

Exhibit A-162. Wachovia Bank and Trust Building Information 272

Exhibit A-163. Wachovia Bank and Trust Building Capital Stack 273

Exhibit A-164. Assessment of Office-to-Residential Conversion Potential in Winston-Salem 274

Exhibit A-165. 200 West Second Street Postconversion Information 278

Exhibit A-166. 200 West Second Street Postconversion Typical Floor Plate 278

Exhibit A-167. 2650 Pilgrim Court Postconversion Information 280

Exhibit A-168. 2650 Pilgrim Court Postconversion Typical Floor Plate 280

Exhibit A-169. Downtown and Citywide Foot Traffic, Six Cities 281

Exhibit B-1. Office Assumptions for Financial Modeling (Per City) 283