July 18, 2025 #1 Local News, Information and Event Source for the Century City/Westwood areas.

Office-to-Apartment Conversions Skyrocket: 70,700 Units Expected by 2025 Amid Housing Shortage

With Vacant Office Spaces on the Rise, Cities Like Los Angeles Lead in Conversions

The number of office spaces being converted into apartments has surged, with a record-breaking 70,700 units projected for completion in 2025, a significant increase from 23,100 in 2022, according to a new report on adaptive reuse projects.

Office conversions now account for 42% of the nearly 169,000 apartments in future adaptive reuse developments, as demand for rental housing continues to outpace supply nationwide. The trend reflects a shift in urban development, with cities repurposing vacant office spaces into residential units to address housing shortages and changing workplace dynamics.

Leading the nation in planned conversions is the New York metro, with 8,310 units in development. Washington, D.C., follows it with 6,533 units, and Los Angeles, which ranks third with 4,388 units slated for conversion.

In Los Angeles, where wildfires have exacerbated an already severe housing shortage, nearly 4,400 upcoming apartment units will come from office conversions, accounting for 49% of all future adaptive reuse projects in the metro area. Additionally, more than 83 million square feet of office space (approximately 25% of the city’s total office inventory) has been identified as suitable for conversion into housing.

One of the most significant projects in L.A. is the ARCO Tower redevelopment, which will transform the 33-story office building at 1055 Seventh St. into 691 apartments, adding much-needed housing stock to the city.

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