Alexandria is a leader nationwide in converting under-used office space to residences, according to a new study from RentCafe.com.
2021 brought a new record in apartment conversions nationwide, with more than 20,100 new units to be completed by repurposing 151 old buildings by the end of this year.
Most of these units come from office redevelopments, a trend that began even before the pandemic, hinting at how things may go if work-from-home arrangements continue, RentCafe.com reports.
And the reason: An increasing number of office buildings are empty as people continue to work from home. A recent Cushman & Wakefield MarketBeat report revealed that 17.2 percent of U.S. office buildings were empty during the second quarter of 2021 — this the highest vacancy rate since it peaked at 17.3 percent in the third quarter of 2010, Rent.com reported.
Alexandria is among top cities in the United States where adaptive reuse projects are bringing a considerable number of new apartments on the market, especially through office redevelopments. RentCafe.com reported that since 2020, Alexandria has redeveloped 955 new units by repurposing former offices. The city closely follows the trend of office-to-apartment conversions, ranking third among the markets where most old redeveloped buildings are former offices.
The prime example from 2020 in Alexandria is The Foundry. Built in the ‘60s, this former office building opened as an apartment community with more than 500 homes. This year, several other Alexandria buildings are being converted from offices, including TideLock/TransPotomac Plaza (formerly the APTP Complex) and a building at 801 N. Fairfax St. in Old Town North.
See Alexandria Living's interactive development map here for more on who's building what where.
