New York City Office-To-Residential Conversions; Here's What We Know [Forbes]
American International Group, Inc. New (AIG)
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Source: Forbes
Pacific Press/LightRocket via Getty Images In the first half of 2024, mortgage maturities were drivers for the New York City office market sales, which saw trades to the tune of $1.27 billion, according to Ariel Property Advisors' New York City 2024 Mid-Year Sales Report However, mortgage maturities affected the office market differently, depending on the asset class. While Class A buildings enjoyed recapitalizations, workouts and refinancings, some Class B and C buildings in less desirable locations and with high vacancy rates faced foreclosure and were handed back to their lenders. Fortunately, a lucky subset of Class B and C office buildings will be getting a “second act” as buyers picked them up with the intention of converting them into housing. This is a welcomed trend in New York City where the housing vacancy rate is 1.4% and the city is facing a shortage of more than 500,000 residential units In fact, conversions are becoming so popular Ariel's research shows that ac
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