New York Office-to-Residential Conversions

Real estate firms in United States — New York City are increasingly converting office buildings into apartment complexes to address the city's housing crunch and high commercial real estate vacancies. This trend is supported by tax incentives that abate 90 percent of property taxes for conversions that include at least 25 percent affordable housing units. Notable projects include 77 Water Street by Vanbarton Group and the Flatiron Building. The policy also expanded the eligibility for conversions to buildings built before 1990. Former mayor Eric Adams and his successor Zohran Mamdani have set targets for adding new apartments and affordable homes, further driving this movement. Firms like Cushman & Wakefield anticipate a significant increase in conversions in the coming years.