Could office buildings that are currently empty be the solution to housing shortages?

As a result of the pandemic, there has been an increase in vacant office spaces in cities. While this trend is certainly concerning, some architects see this as an opportunity to address the ongoing issue of housing shortages in the United States. According to Up For Growth, a nonprofit research group, there is a shortage of 3.8 million homes in the country. In cities like San Francisco, this shortage translates to over 110,000 housing units, leading to high home prices and rents. While building new housing is a viable solution, it can be costly, time-consuming, and complex. As a result, some firms are considering the possibility of converting commercial office space into residential space as a way to address the housing shortage. 

For its 11th season, the Architizer A+Awards are focusing on sustainability and honouring designers striving to create a better future. These awards recognize the efforts of individuals and teams working towards a more sustainable and environmentally-conscious future in the architecture and design industry. If you are a designer or architect who is committed to sustainability, we encourage you to submit your work for consideration in the A+ Awards. In North America, the commercial real estate sector has been struggling to fill empty office space despite lifting pandemic restrictions on in-person work. 

The office vacancy rate in the United States in 2022 was 12.3 per cent, up from 9.6 per cent in 2019 and approaching the 13 per cent high reached after the Great Recession. In cities such as San Francisco, New York, and Seattle, high vacancy rates could leave buildings empty, potentially turning business districts into ghost towns.

Converting empty office buildings into housing could potentially solve several problems faced by cities. Not only would it provide new, permanent occupants for these buildings, resulting in additional revenue for both commercial owners and municipalities, but it would also bring a rapid increase in conveniently located housing without the need for costly demolition and construction. This could also rejuvenate struggling downtown areas by bringing an influx of residents, thereby encouraging investment in community services, public transportation, and parks in these areas. 

Calgary is facing an interesting case study for the impact of the economic downturn and the shift to remote work due to the pandemic. This has resulted in a large number of workers leaving the office, leading to a downtown office vacancy rate of 32% in 2021, up from 24% the previous year. This equates to approximately 12 million square feet of empty office space. A disproportionate amount of this empty space is located in older buildings from the late 1960s and 1970s, classified as Class B or Class C, which are not as desirable or equipped with amenities as Class A offices and therefore less likely to attract new tenants. Unless there is a significant turnaround in Calgary's economic situation, the city may be left with a significant number of underutilized and potentially neglected old office spaces.

Last year, the architecture firm Gensler conducted a study for the city of Calgary on the feasibility of converting underused office buildings in the downtown area into residential units. After examining 28 buildings, the firm found that about 30% could be successfully converted into housing. This could potentially provide 2000 new units for around 4000 people in the downtown area. Interestingly, the study also revealed that the city's oldest and least visually appealing office buildings, which are typically classified as Class C, would be the easiest to transform into apartment buildings due to their high ceilings and the simplicity of removing ceiling tiles and ducts. 

The 909 5th Avenue office building in Calgary's downtown area is a great opportunity for a residential retrofit. The ten-story, 129,000-square-foot building has been largely empty for several years and it is unlikely that it will attract new tenants in the near future. However, the building's location is perfect for residential development as it is located on a busy street corner in the city's commercial district, near parks, restaurants, and transit hubs.  

Peoplefirst Developments, a Calgary-based company, has decided to take on the task of converting an office tower into an apartment rather than rebuilding it. The project, named The Cornerstone, is set to be finished next year and will offer 112 two- and three-bedroom apartments, with 40% of them being available for rent at below-market rates. Although the building's structure will remain largely unchanged, it will receive a complete overhaul of its exterior and the addition of balconies for the units, giving it a modern and cosy atmosphere.

Office conversions like The Cornerstone have the potential to address issues of housing shortages and office surpluses in cities, but they cannot simply materialize without the support of local and federal governments. By facilitating and expediting these types of projects, governments can encourage architecture firms to undertake large-scale retrofits. Ultimately, office conversion can be a valuable solution in addressing the challenges faced by cities in the future.