- The Subtitle
- Posts
- From Cubicles to Condos: Office Conversions Set to Break Records in 2025
From Cubicles to Condos: Office Conversions Set to Break Records in 2025
Welcome to the Subtitle!
If you’re in real estate, you’re in the right place. The Subtitle covers real estate’s latest stories in 5 minutes or less. If you know someone who would appreciate this content, please forward this email. Oh! And if someone forwarded this to you, don’t forget to subscribe to our free newsletter so you never miss out!
We’re listening. Send us feedback by replying to this email.
Let’s get into it.
News Flash
The Office-to-Apt Trend Heats Up
Empty office buildings are getting a second life—and the housing market is here for it.
Adaptive reuse projects will deliver a whopping 71,000 new apartment units in 2025 through the conversion of existing buildings, primarily vacant office spaces. That's a 28% jump year-over-year, and it signals a major shift in how developers are tackling the housing crunch.
Where's all this activity happening? Exactly where you'd expect; it’s starting in the largest cities.
New York City, Washington D.C., and Los Angeles are leading the charge, according to RentCafe's analysis. These are markets where office vacancy signs have become as common as high-priced coffee shops—and where housing affordability has reached crisis levels.
These conversions align perfectly with broader housing initiatives. In New York, for instance, re-zoning and development efforts aim to increase supply and create more affordable options.
With demand still outpacing supply in the multifamily sector and homeownership becoming increasingly out of reach, these office-to-apartment transformations aren't just clever—they're necessary.

More You Should Know
ALTA Boosts Title Protection: The American Land Title Association's board approved new and revised endorsements for title policies, aiming to combat deed fraud risks and address residential solar equipment, with public comment period ending July 17. [Source]
Southern Housing Glut Surges: New-home inventory has reached its highest level since 2007, primarily driven by a substantial oversupply in the South, where sales have declined despite aggressive builder incentives. [Source]
Blackstone Buys $2B CRE Loans: Blackstone acquired nearly $2 billion in performing commercial real estate loans from Atlantic Union Bankshares as regional banks continue to offload property risk, marking a strategic move for the alternative-asset giant to expand its discounted debt portfolio. [Source]
Rent Growth Moderates, Demand Solid: Yardi Matrix's Summer 2025 forecast projects a moderation in national rent growth to 1.5 percent this year, with an anticipated increase to 3 percent by 2028 as new construction slows and homeownership remains largely inaccessible to many households. [Source]
House Price Growth Slows: The Federal Housing Finance Agency (FHFA) reported that the annual gain in its House Price Index slowed to 3.0% in April, indicating moderating price momentum across the U.S., with the Mountain and West South Central divisions experiencing the weakest year-over-year appreciation. [Source]
Office Vacancy Remains High: While the national office vacancy rate slightly decreased month-over-month to nearly 19.4%, it remains significantly higher than a year ago, pushing landlords to consider property conversions as average rents climb. [Source]
Inventory Soars, Buyers Gain Edge: Realtor.com reports active for-sale listings have surpassed one million for the first time since 2019, reflecting 85 consecutive weeks of year-over-year gains and a market shift favoring buyers, with one in five sellers cutting asking prices. [Source]
Housing Affordability Plummets Nationally: ATTOM's Q2 2025 report reveals that typical mortgage and related costs consume 33.7% of average national wages, with 575 of 579 analyzed counties now less affordable than historic norms, indicating a widespread decline in housing affordability. [Source]
If you appreciate our content, please forward to a friend or coworker and encourage them to subscribe!
Reply