Atlanta is working towards residential excellence through transforming office spaces. As per the RentCafe report, the office-to-residential conversions in Atlanta will be impactful. The report talks about the post-pandemic trend of office spaces being converted across metro cities in the US, with records being broken year after year.
Highlights
- Atlanta has more than 2200 units that are in the pipeline of office-to-residential conversion.
- The city is sixth in the country in terms of the number of conversion projects in the pipeline.
- The report discusses a nationwide trend of office space being converted into residential space as the US faces a severe housing shortage.
Atlanta’s Office-to-Residential Conversions Soar
The report has stated that there has been a 57% increase in the number of units that have entered the office-to-residential conversion pipeline in one year in Metro Atlanta. It further mentioned that Greater Atlanta currently has 2,239 units scheduled for delivery in the future. These office-to-apartment conversion projects make up 56% of all ongoing adaptive reuse projects in the metro.
The report said only 6% of Atlanta’s total office inventory, about 14.2 million square feet of office buildings, is suitable for future office-to-apartment conversions. Across all building types, there are a total of 3,980 conversion projects in the pipeline, according to the data cited in the report.
Among the more prominent transformation projects is the one happening at 2 Peachtree St, the report mentioned. It is expected that the project, when completed, will have the 890,000 square feet of space converted to contain a minimum of 200 new apartments. Another notable project is happening at 14 Marietta, which will also add more affordable housing in the city. The city aids these projects as it works towards solving the local housing affordability crisis.
RentCafe published the “Market Insights” report on January 30. The report discusses the increasing trend of adaptive reuse of newer buildings. The total number of apartments that are set to be converted from office spaces has gone up from 23,100 in 2022 to 70,700 in 2025, continuously breaking records.
RentCafe’s analysis is based on the data compiled by commercial real estate analytics firm Yardi Matrix. The firm’s data included residential units created by conversion projects currently underway, prospective projects, and those that are in the stage of early planning.
Cities have been working towards converting unused office space to residential spaces as an innovative solution to increase the housing supply. While the conversion may be a considerable undertaking, the government’s efforts are to remove the defunct office spaces and add to the rental housing market. Given that the United States has a severe shortage of housing units, this move will help remedy the problem.
