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the problem is that the cost of converting an outmoded commercial building to residential is usually within the same order of magnitude as knocking it down and
by WillPostForFood 3y ago
the problem is that the cost of converting an outmoded commercial building to residential is usually within the same order of magnitude as knocking it down and putting up something built for purpose.
If you look at the urban core of many cities, they are full of old commercial buildings converted to lofts/residentia. The old bank district in LA was empty and in disrepair for decades, then a huge conversion boom in the 2000's. Soho in NYC. Many buildings south of Market in SF.
The question is why can't we accelerate the process so the buildings don't sit unused for decades before it becomes worth conversion. <- though maybe that is the crux, the prices need to decline enough to make it worth it.
- CydeWeys 3y agoYour average modern commercial skyscraper is less amenable to this kind of conversion than those older, shorter, smaller floor plate industrial/commercial buildings, though. And there's still a lot of opportunity cost in renovating a modern class A commercial building that isn't there for renovating a long-abandoned older industrial/commercial space; those have basically no opportunity cost because the existing uses are worthless.
- nocoiner 3y agoYeah, I could have been more specific when I said “outmoded commercial buildings.” I meant the typical open floor plan office towers built during the ‘60s-‘80s. Those are challenging, though not impossible, to convert to residential. But absent incentives it’s almost always cheaper to start from scratch. More recent commercial buildings, particularly anything from the last decade, are generally fine in terms of valuation/viability - there’s been a very noticeable flight to quality in commercial real estate. Lots of tenants are giving up space in the slightly obsolete buildings and moving into new flagship towers.
- pclmulqdq 3y agoMany of today's office buildings are not built to last, honestly. There is a good chance that a glass/concrete tower will collapse in 100 years, while the old brick factories are basically indestructible.