Office-to-residential conversions hit record high in 2025

Office-to-residential conversions now account for nearly 42% of the 169,000 apartments created from adaptive reuse projects, reflecting a shift towards sustainable urban spaces post-pandemic. The trend has grown significantly, with upcoming conversions increasing from 23,100 units in 2022 to an all-time high of 70,700 in 2025. New York leads with 8,310 units, followed by Washington, D.C. and Los Angeles. Cities are incentivizing these projects, offering tax exemptions and abatements to encourage conversions.