Dallas is a leader in office-to-apartment conversions
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The Dallas area is one of the top metros for converting vacant office space into new apartments, per a new RentCafe report.
Why it matters: Redeveloping underused office space is a key part of plans in many big cities to adapt to post-pandemic realities and create much-needed housing, Axios' Kate Marino reports.
Driving the news: More than 3,100 Dallas area apartments will be converted from office space this year, and more than 3,800 are planned in the future.
- The Dallas region falls behind just New York City and Washington, D.C., in the number of planned office conversions.
Zoom out: More than 55,300 new units are expected from office-to-apartment flips nationally this year — up from 12,100 in 2021.
- The flips now account for 38% of the 147,000 apartments planned in adaptive reuse projects. Hotel conversions account for about a quarter of the projects.
The intrigue: Planned office conversions in Dallas are up 58% this year compared with last year.
- Downtown Dallas has been trending more residential in the past two decades, but the pandemic and the move to more remote work has accelerated the transition.
Yes, but: The average asking rent for converted units is nearly $2,700 per month, above the average downtown rent of $2,300 a month.
- And some higher-end conversions, such as The National, have rents as high as $6,000, per CoStar.