Conversions of office buildings into residential housing are proliferating throughout New York City. The COVID-19 pandemic’s hyper-acceleration of the shift to remote work, which, in turn, significantly reduced the need for office space, has driven the conversion boom. This dramatic reduction in occupancy, coupled with the inability to lease vast amounts of existing empty space—particularly in older buildings without desirable amenities such as luxury gyms and trendy restaurants—has caused tremendous losses in equity and has led to rising commercial mortgage defaults. Now, to create much needed housing for a city that has long been plagued by a housing shortage crisis, while putting unused commercial space to better use, the government, along with many private lenders, has vigorously incentivized conversion projects. (Press Release, N.Y.C. Off. of the Mayor, Mayor Adams Announces Back-to-Back Record-Breaking Years Creating Affordable, Supportive Housing in Calendar Year 2024 (Feb. 13, 2025), http://bit.ly/3ZVl8MR.)
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"Navigating the Commercial-to-Residential Conversion Boom," by Massimo F. D'Angelo, Robert Chester, and William M. Pekarsky was published in the September/October 2025 Issue of the ABA Probate & Property Magazine.