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can you explain why parking would be an issue? Typically offices are more people-dense than residential. So converting office to residential should reduce the

can you explain why parking would be an issue? Typically offices are more people-dense than residential. So converting office to residential should reduce the number of parking spaces needed.

indymike 2y ago
The ocean of concrete around a typical suburban office building is very expensive to remediate. Downtown buildings often have integrated parking garages which create substantial expense when converting to residential. Also, family residences may actually increase parking demands in downtown properties (i.e. walk/train/etc to work means less demand for spaces then when 2 car families move in). If converting to residential was doable outside of extremely low value/tax incentive properties, every REIT would be converting their poor performing commercial holdings... It's just not simple, easy or rewarding right now.
- Vvector 2y ago
  Can you explain the "substantial expense" required to convert an office parking garage to a residential parking garage? Typically, office building parking ratio is currently around 4 spots per 1,000 square feet (1). With two people sharing a 750 sqft 1BR apartment, there should be 50% extra parking spaces. (1) https://www.commercialrealestate.loans/commercial-real-estate-glossary/parking-ratio/ https://www.commercialrealestate.loans/commercial-real-estat...
  - indymike 2y ago
    Typical != Local
- bluGill 2y ago
  We are not (or should not) be talking about an overnight change. Parking lots and ramps wear out over time and have to be replaced (ramps must be replaced for safety reasons, lots you can fill the holes with gravel and continue using if the market will allow). Likewise buildings reach the point where you can start asking if remodeling is better than tearing down (often to build larger). Cities should be changing over time, so remove one old lot/ramp/building and watch what happens. If parking is needed you will see that as existing lots/ramps fill and raise rates, while if it isn't needed you will see. And of course as you build larger that means more people which in turn gives transit a boost in rider which in turn means you can increase service making cars less needed. Every year every lot/ramp/building owner should observe the city compared to their real estate and decide if maybe it is time to do something different.
  - indymike 2y ago
    There's a reason that most re-development takes a long time. Most of that time is waiting for land values to drop to the point that redevelopment is the best way to restore property tax revenue. That process takes decades. The thought exercise here is what if there was a way to go faster and convert a building from commercial to residential? The article is about a developer who does this in NYC... where a lot of commercial real estate is at 50% occupancy... and is doing conversions very quickly.

can you explain why parking would be an issue? Typically offices are more people-dense than residential. So converting office to residential should reduce the number of parking spaces needed.

indymike 2y ago

The ocean of concrete around a typical suburban office building is very expensive to remediate. Downtown buildings often have integrated parking garages which create substantial expense when converting to residential. Also, family residences may actually increase parking demands in downtown properties (i.e. walk/train/etc to work means less demand for spaces then when 2 car families move in). If converting to residential was doable outside of extremely low value/tax incentive properties, every REIT would be converting their poor performing commercial holdings... It's just not simple, easy or rewarding right now.

Vvector 2y ago
Can you explain the "substantial expense" required to convert an office parking garage to a residential parking garage? Typically, office building parking ratio is currently around 4 spots per 1,000 square feet (1). With two people sharing a 750 sqft 1BR apartment, there should be 50% extra parking spaces. (1) https://www.commercialrealestate.loans/commercial-real-estate-glossary/parking-ratio/ https://www.commercialrealestate.loans/commercial-real-estat...
- indymike 2y ago
  Typical != Local
bluGill 2y ago
We are not (or should not) be talking about an overnight change. Parking lots and ramps wear out over time and have to be replaced (ramps must be replaced for safety reasons, lots you can fill the holes with gravel and continue using if the market will allow). Likewise buildings reach the point where you can start asking if remodeling is better than tearing down (often to build larger). Cities should be changing over time, so remove one old lot/ramp/building and watch what happens. If parking is needed you will see that as existing lots/ramps fill and raise rates, while if it isn't needed you will see. And of course as you build larger that means more people which in turn gives transit a boost in rider which in turn means you can increase service making cars less needed. Every year every lot/ramp/building owner should observe the city compared to their real estate and decide if maybe it is time to do something different.
- indymike 2y ago
  There's a reason that most re-development takes a long time. Most of that time is waiting for land values to drop to the point that redevelopment is the best way to restore property tax revenue. That process takes decades. The thought exercise here is what if there was a way to go faster and convert a building from commercial to residential? The article is about a developer who does this in NYC... where a lot of commercial real estate is at 50% occupancy... and is doing conversions very quickly.