Hapco Philadelphia predicted that those emptying office spaces in Center City would be prime real estate for apartment conversions.

Well, it’s happening according to a survey from our partners at RentCafe.

Your former workspace could become your newest rentalThe Philadelphia metro is experiencing a surge in office-to-apartment conversions, with nearly 1,000 units in the pipeline.  The Philly metro is 14th on the list of areas with the most office conversions underway in 2024.

Nationwide, 2024 is a record year for repurposed office spaces, with 55,339 units currently under conversion and expected to enter the market in the coming years. That said, office conversions account for 38% of the 147,000 apartments anticipated to result from adaptive reuse projects in the U.S.

Here are more key highlights for Philly:

  • The Philadelphia metro is converting 975 units from office spacesrepresenting 19% of the area‘s total future conversions (5,092).
  • Compared to last year, the number of office-to-apartment transformations has more than doubled, increasing by 136%. 
  • The 1701 Market Street project is at the forefront of adaptive reuse in Phillyaiming to repurpose an office building into 325 new apartments.
  • The bigger picture: From 2021 to 2024, the number of apartments scheduled for conversion from old office spaces increased from 12,100 to 55,300 nationwide. This trend is most prominent in Washington, D.C. (5,820 units), followed by New York (5,215 units), and Dallas (3,163 units).