August 2025
This month, we explore the growing momentum behind office-to-residential conversions and the strategies cities are testing to breathe new life into their urban cores.
IN THE MARKET
The Downtown Reset Gains Momentum
Green shoots are finally visible in the office market with employees trickling back in greater numbers and once-theoretical office-to-residential conversions starting to rebalance supply. Office vacancy rates remain painfully high, but cities like New York, Minneapolis and Denver are re-thinking ways to turn dark office towers into homes and - for now - the momentum feels real.
Denver kickstarts conversions. Backed by a $570 million Downtown Development Authority (DDA) plan, the city committed its first $100 million in catalytic investments this summer. Those funds are seeding the first major downtown conversions, albeit for a relatively small number of additional housing units. It’s encouraging to see progress, though in order to truly reshape the downtown core, the city will need to address its longstanding permitting issues (which are improving but not yet resolved), the legislative challenges and uncertainty around Regulation 28 and Energize Denver, and expand financial incentives beyond the select few awarded DDA funds.
Minneapolis leans on faster approvals. The city has cut red tape with expedited approvals and modifications to its parking and inclusionary zoning requirements…
The August edition also covers turbulence in the economy, Big Tech’s infrastructure binge, and next-gen nuclear reactors…
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