![]() ![]() Sublease availability across the Orlando office market increased by 21.7% year-over-year during the first quarter, according to the report by Avison Young. With a 43.9% year-over-year decline in leasing activity, the first quarter experienced the softest quarterly traction in leasing volume since the 2008 recession, resulting in only 410,000-square-foot leased. ![]() Office leasing activity across the Orlando market has reached its slowest point since the pandemic, according to the most recent office report by Avison Young, which reflects the first quarter of 2023. NAREE 2022: Are we getting ready to see a wave of office tower conversions? “The bones of an office building just don’t work for residential.” “You have to reconstruct, and when you add it all up, (the cost) is about 20 percent more than tearing down and rebuilding,” Scott Ziegler, an architect with Houston-based Ziegler Cooper Architects, said during a NAREE panel discussion held at Caesars Palace. Annie Rice (Photo courtesy of JLL)īut just because these buildings could be converted into apartments, doesn’t mean developers are willing to take on the challenge or cost.ĭevelopers who pursue these projects are often met with sticker shock. The report, which did not include data on the Orlando market or any city in Florida, looked at more than 26,000 buildings and determined that 8,966 could one day house thousands of families. cities are potential candidates for adaptive reuse. So until we get through some of that, it’s still going to be very challenging to make these conversions happen.”Ī recent report by Avison Young found that one in three office buildings in 14 major U.S. You’re dealing with size and structural issues and then if you can keep past zoning the cost to actually convert an office is still extremely high. “Office conversions to multifamily are starting to occur, but it’s worth noting that there a fair amount of headwinds. “Office conversion is a hot topic,” said Annie Rice, a managing director with JLL, said at the conference held at Caesars Palace. Today, not only are conversions happening more frequently, but 50 percent nationwide are aimed at multifamily, according to data shared by JLL Capital Markets at the National Association of Real Estate Editors conference in Las Vegas. LAS VEGAS - Before the pandemic, only a third of office conversions involved redeveloping the space into residential units. ![]()
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