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Office conversions offer an attractive solution for savvy property owners looking to improve the value of their assets. Commercial vacancy rates have skyrocketed—currently sitting as high as 18%, according to CBRE—while the demand for housing in Ontario continues to surge, creating immense pressure to quickly bring new homes to market. A window has opened for property owners to realize incredible value by converting old offices into stunning, sought-after residential spaces.
For those holding these commercial buildings, the time to act is now.
While not every office building will be eligible for this type of project—only about 25% of office buildings are ideally suited for conversion—owners who can identify the opportunities in their properties are in a position to create real surplus value if they act quickly. Location, layout, and structural integrity are critical in determining whether a building is fit for transformation.
When taking on a project of this scope, it is vital to partner with a team that can identify ways to create value and then effectively execute the vision. For example, repurposing the carbon embedded in a building offers a sustainable solution that saves both time and money compared to typical demolition. It is also important to consider things like what amenity spaces to invest in to optimize value and resident satisfaction. There are many efficiencies to be found in the process if you know where to look.
When it comes to office conversions, time is of the essence. One of the most significant advantages of conversions is their potential to deliver homes to market faster than traditional builds. With an experienced team at the helm, these conversions can be completed in less than two years, a far cry from the three-plus years for a typical new development.
The value in the conversion process is found in efficiency. It is easy for conversions to get bogged down in planning and municipal red tape; design challenges, city approvals, and construction challenges are the usual culprits. It is critical for property owners to partner with a team that has experience working through these issues and can deftly maneuver through the typical roadblocks.
A prime example of a successful office conversion is 170 Metcalfe, which was transformed into 61 residential apartments. This 8-storey office building was identified as an outstanding space for conversion based on its spectacular downtown location and adaptable unit layouts. The project involved significant work, including the removal of the building shell, installation of a new elevator, and creation of premium amenity spaces.
Despite the sizeable scope, this conversion was completed in just 32 weeks, highlighting how efficiently these projects can be done if coordinated properly. Our team was able to effectively manage the process from start to finish, leading to the delivery of a beautiful and profitable rental building.
In Ottawa—where the federal government is downsizing office space and the city has already moved to expedite conversion approvals—office conversions provide numerous opportunities for building owners to transform underused properties into vibrant residential spaces. Office conversions can be a financially rewarding strategy for property owners; whether transforming an old office building into modern apartments, retirement centers, or other building types, the possibilities are vast.
For commercial property owners, now is the time to act. Ready to explore the potential of your property? We are highly experienced in this process and have the knowledge and industry partnerships to effectively and efficiently convert office spaces into profitable residential units.