From Vacant to Vibrant: The Untapped Potential of Office-to-Multifamily Conversions in Revitalizing Urban Communities

Introduction

The American urban landscape is undergoing a profound transformation.

As remote work solidifies its place in corporate culture and office vacancy rates hover near record highs, cities across the nation face a critical juncture.

Simultaneously, a nationwide housing shortage continues to drive up residential costs, pricing out essential workers and threatening the vibrancy of urban centers.

This convergence of challenges presents a remarkable opportunity: repurposing underutilized office buildings into much-needed housing.

Beyond addressing practical concerns, these adaptive reuse projects are breathing new life into neighborhoods, creating vibrant mixed-use communities where vacant buildings once stood.

This article explores how office-to-residential conversions are not only filling empty buildings but revitalizing entire communities through strategic development and thoughtful urban planning.

The Economic Case for Conversion. The numbers tell a compelling story:

Office Vacancy Crisis: National office vacancy rates exceed 18.5%, with some central business districts experiencing rates above 25%

Housing Deficit: America faces a shortage of nearly 4 million housing units

Sustainability Advantage: Adaptive reuse generates 50-75% less carbon emissions compared to new construction

Economic Impact: Every $1 million invested in conversion projects generates approximately 8-12 full-time equivalent jobs

These conversions offer a solution that addresses multiple urban challenges simultaneously while creating significant economic benefits for developers, municipalities, and residents alike.

Five Office-to-Multifamily Conversion Case Studies

Case Study 1: Residences at 1717 - Cleveland, Ohio

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Experience upscale living in a historic landmark.

Originally the East Ohio Gas Building,

Cleveland’s second tallest and first all-glass structure when built in 1958, the Residences at 1717 has been meticulously restored by K&D Development into 223 luxurious suites.

Offering stunning views of Lake Erie and downtown, this 21-story tower at 1717 E 9th St provides modern amenities like a fitness center, rooftop terrace, and concierge services, all within walking distance of Playhouse Square and vibrant urban conveniences.

Completed in 2021, this $60 million project transformed a vacant office building into a premier residential address, revitalizing Cleveland’s downtown core.

Address: 1717 E 9th St, Cleveland, OH 44114

Key Details:

📌223 units (studios to two-bedrooms),

 📌Completed 2021,

📌Historic tax credits utilized, 15% affordable housing component.

Community Impact:

 📌Increased downtown residential population,

📌Boosted local retail.

📌Preserved mid-century modern architecture.

Source: K&D Real Estate Services, Crain’s Cleveland Business

 

Case Study 2: Gemma Apartments - Los Angeles, California

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Discover sophisticated urban living in the heart of Koreatown.

The Gemma Apartments at 3540 Wilshire Blvd, originally a 1957 Class B office building, were transformed by Jamison Properties into a 206-unit multifamily haven by 2022.

This 13-story adaptive reuse project blends mid-century charm with modern luxury, featuring studios to two-bedroom units, a rooftop pool, and a redesigned lobby.

Awarded a Structural Engineering Excellence Award,

Gemma offers residents proximity to LA’s cultural and dining scenes, revitalizing a once-underutilized office tower into a vibrant community hub.

Address: 3540 Wilshire Blvd, Los Angeles, CA 90010

Key Details:

📌206 units, completed April 2022.

📌$37 million acquisition cost.

📌Modular construction for efficiency.

Community Impact:

📌Enhanced Koreatown’s residential density,

📌Supported local businesses.

📌Reduced carbon footprint via adaptive reuse.

Source: Multi-Housing News

Case Study 3: The Bell - Cleveland, Ohio

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Live where history meets luxury.

The Bell, formerly the Ohio Bell Telephone Co. headquarters built in 1983, has been reimagined by Bluelofts into 367 upscale apartments at 45 Erieview Plaza.

Completed in 2023, this 16-story tower at 45 Erieview Plaza offers studios to two-bedroom units with panoramic Lake Erie views, an outdoor pool, and co-working spaces on every residential floor.

The $102 million project, leveraging $20 million in historic and federal tax credits, has transformed a vacant downtown office building into a cornerstone of Cleveland’s residential renaissance.

Address: 45 Erieview Plaza, Cleveland, OH 44114

Key Details:

📌367 units, completed 2023,

 📌$36 million acquisition.

📌Features indoor community room and patio.

Community Impact:

📌Catalyzed retail growth in the Erieview Historic District,

📌Increased downtown foot traffic, and preserved 1980s architecture.

Source: RealPage Analytics Blog

Case Study 4: Residences at Rivermark - Baton Rouge, Louisiana

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Embrace elegant living in a reimagined icon.

The Residences at Rivermark at 451 Florida St, once a Brutalist office tower, was converted by Gensler into 144 residential units across 12 floors by 2024.

Preserving the original façade to earn historic tax credits, this project offers one- to three-bedroom apartments, a shared lobby for office and residential tenants, and access to Baton Rouge’s cultural landmarks like the Shaw Center for the Arts.

The adaptive reuse design has revitalized a dormant downtown asset, creating a sustainable residential community.

Address: 451 Florida St, Baton Rouge, LA 70801

Key Details:

📌144 units, completed 2024,

Community Impact:

📌Boosted downtown population,

📌Supported local farmers’ market/

📌Reduced environmental impact through reuse.

Source: gb&d Magazine

Case Study 5: Carew Tower - Cincinnati, Ohio

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Step into timeless luxury at Carew Tower,

Cincinnati’s Art Deco masterpiece.

Built in 1930 at 441 Vine St, this 49-story National Historic Landmark was partially converted by Victrix Investments into 385 residential units across floors 4 to 44 by 2025.

The $175 million project retains the tower’s ornate commercial base while offering studios to penthouse apartments with panoramic city views, rooftop amenities, and proximity to Fountain Square.

Supported by $4.25 million from Ohio’s Transformational Mixed-Use Development Program, Carew Tower redefines downtown living.

Address: 441 Vine St, Cincinnati, OH 45202

Key Details:

📌385 units, completed 2025,

📌$175 million total cost, retains Hilton hotel and commercial spaces.

Community Impact:

📌Increased residential density,

📌Spurred adjacent retail growth.

📌Preserved a historic landmark.

Source: RealPage Analytics Blog

 

Lessons Learned:

Replication Strategies for Cities and Developers

For Policymakers:

Regulatory Flexibility: Adaptive reuse overlay zones can streamline conversions

Financial Incentives: Targeted tax abatements and gap financing programs address feasibility challenges
Infrastructure Investment:

Public realm improvements around conversion projects multiply their impact

Community Benefits Requirements:

Inclusionary housing and local hiring mandates ensure broad impact

For Developers:

Community Engagement:

Early neighborhood input improves outcomes and builds public support

Mixed-Use Programming: Ground-floor activation enhances project viability and community benefits

Sustainable Design: Energy retrofits reduce operating costs and attract environmentally conscious residents

Preservation Balance: Respecting architectural heritage while modernizing systems creates unique value propositions

For Financiers:

Patient Capital: Longer investment horizons may be necessary for complex conversions

Blended Return Metrics: Considering social and environmental returns alongside financial performance

Creative Capital Stacks: Combining traditional financing with mission-driven capital sources

Risk Mitigation: Phased approaches to larger conversions can reduce exposure

Conclusion:

📌A Transformative Opportunity
Office-to-residential conversions represent more than a real estate trend—they offer a powerful tool for community revitalization.

📌These projects demonstrate how thoughtful adaptive reuse can simultaneously address housing shortages, reduce carbon emissions, preserve architectural heritage, and create vibrant mixed-use neighborhoods.

📌As remote work continues to reshape office demand, the potential for transformation is immense.

📌An estimated 1 billion square feet of office space could be candidates for conversion nationwide, potentially creating 800,000 to 1 million new housing units while revitalizing struggling business districts.

📌The case studies presented here provide a roadmap for how cities, developers, and communities can collaborate to turn vacant buildings into vibrant neighborhoods.

📌With the right policy frameworks, financial tools, and community engagement strategies, office-to-residential conversions can help address America's housing crisis while breathing new life into our urban centers.

 
About the Author: Donald Montgomery is a principal at Montgomery Lending specializing in adaptive reuse financing with over 15 years of experience in real estate development and community revitalization projects.