Office-to-apartment conversions are becoming a bigger part of the multifamily conversation. As more office buildings sit underused and more owners face loan maturities, adaptive reuse is creating a new path for adding housing in markets where ground-up development is not always the easiest option. At the start of 2026, 90,300 units were in the office-to-apartment pipeline nationwide, up 28% from a year earlier and nearly four times the level seen in 2022.
A Different Way to Add Multifamily Inventory
For multifamily owners and operators, conversions represent more than a real estate trend. They reflect a growing need to bring new residential inventory online in locations where demand remains strong but development conditions can be more challenging. In many urban markets, converting an existing office asset can create new apartment opportunities without starting from the ground up. That matters in a market where speed, location, and overall project feasibility all play a role in how quickly new units can be delivered.
Why More Office Buildings Are Being Repositioned
A major driver behind this shift is the amount of pressure facing the office sector. The article notes that roughly one-third of U.S. office loans, totaling more than $213 billion, are set to mature by 2027. At the same time, office vacancy remained near 20% in early 2025, with many buildings physically occupied at only 50% to 55%. For owners of underperforming office properties, repositioning into residential use is becoming a practical option. For the multifamily industry, that creates opportunities to turn obsolete commercial space into housing that better matches current market needs.
The Growth Shows This Is More Than a Passing Trend
The pipeline numbers show how quickly this strategy is gaining ground. Planned office-to-apartment units increased from 23,100 in 2022 to 45,200 in 2023, 55,300 in 2024, 70,700 in 2025, and 90,300 at the start of 2026. Office conversions now make up nearly half of all planned adaptive reuse projects nationwide. For multifamily stakeholders, that growth signals something important. Adaptive reuse is becoming a more meaningful part of how new residential supply is created, especially in markets where the right building and the right location can support long-term value.
What This Means for Owners and Operators
Conversions are not simply about changing a building’s use on paper. To function as successful housing, former office properties often need substantial work to support residential living. Unit layouts, interior finishes, shared spaces, accessibility, amenity offerings, exterior conditions, and overall building functionality all have to align with what residents expect from a multifamily community. That makes execution a major part of the equation. A conversion may start as a redevelopment strategy, but its success depends on how well the property is renovated, updated, and positioned for the resident experience and for long-term asset performance.
Dallas and Other Major Markets Are Already Moving
Several major metros are leading the way, including New York, Washington, D.C., Chicago, Los Angeles, Dallas, Denver, and Philadelphia. Dallas alone has 3,966 units underway, with office conversions accounting for 82% of all adaptive reuse projects in the market. That is especially relevant for the multifamily space in Texas. It shows how repositioning older commercial properties is becoming part of the broader housing and investment conversation, not just in legacy gateway cities, but in growth markets as well.
Adaptive Reuse Still Depends on Strong Renovation Work
For multifamily owners, adding units through conversion is only part of the story. The finished property still has to perform. That means the renovation work has to support leasing, resident experience, and the overall value of the asset. Interior improvements, common areas, exterior upgrades, and property-wide updates all help determine whether a repositioned building feels like a true apartment community instead of a former office building with units added in. That is where the construction side of adaptive reuse becomes critical. Repositioning a property is one thing. Delivering a multifamily product that works for residents and supports ownership goals is another.
A Growing Opportunity in Multifamily
Office-to-apartment conversions are growing because they answer two needs at once: they help address underperforming office assets, and they create a way to bring more housing into the market. For multifamily owners and operators, that makes adaptive reuse a strategy worth watching closely as more projects move through the pipeline. At Matrix, we understand that multifamily repositioning takes thoughtful renovation work to bring a property into its next phase. If you are planning apartment renovations, exterior improvements, common area upgrades, or restoration work as part of a value-add or repositioning strategy, work with us.