From Boardrooms to Bedrooms: NYC’s Office Makeover
- Corey Cohen
- 3 minutes ago
- 2 min read
New York City is transforming vacant office buildings into apartments to address its housing shortage. With Manhattan’s office vacancy at 16.5% and a need for 560,000 new homes by 2030, developers are converting outdated workspaces into residences, particularly in the Financial District, Midtown East, and Brooklyn’s DUMBO. Incentives like the 467-m tax exemption and zoning reforms are driving progress, despite renovation challenges.
Featured Projects
Manhattan
25 Water Street (Financial District)Details: Formerly the Daily News and JPMorgan Chase HQ, this 1.13 million sq ft building now houses 1,320 apartments (330 affordable). Opened April 2025, it’s the largest U.S. office-to-residential conversion.
219-235 East 42nd Street (Midtown East)Details: The former Pfizer headquarters is being converted into 1,500 rental apartments, the city’s largest by unit count. Underway, led by Metro Loft and Gensler.
55 Broad Street (Financial District)Details: Transformed into 571 market-rate apartments by Metro Loft and Silverstein Properties. Recently completed, with 1-bedroom rents around $5,300/month.Impact: Near the Stock Exchange, it strengthens the Financial District’s residential appeal and 24/7 vibrancy.
300 East 42nd Street (Midtown East)
18-story, 235,000 square-foot office and retail building which investor David Werner was reported to be buying at a deep discount. Although not yet posted in public records, the purchase closed last Wednesday for $52 million, as expected — less than half the property’s last sale price in 2019 (NY Post).
Brooklyn
175 Pearl Street (DUMBO)Details: Acquired for $67M by Watermark Capital Group (35% below 2017 price), this 14-story office building is slated for residential conversion and delivery in 2027.
Market Drivers
NYC urgently needs more homes. The city's rental vacancy rate is just 1.4%, highlighting a severe shortage. Over the past decade, residential rents have surged by more than 30%, putting even more pressure on affordability.
Policy Support: The 467-m tax exemption (90% tax reduction for 25% affordable units) and Office Conversion Accelerator program incentivize developers. Zoning reforms now allow pre-1990 building conversions.
Challenges
Conversions face high costs and complex renovations, like adding windows to deep floor plans and upgrading utilities. The 467-m’s 25% affordability requirement can strain budgets. Yet, the pipeline is robust: 26 projects filed since 2020, with 69 more in discussion (Gothamist).
On The Move
Planning a move in the next year? Let’s connect for a consultation - it’d be my pleasure to help you strategize your next steps.
Best,
Corey Cohen
Founder
The Roebling Group
646.939.7375
@mrcoreycohen
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