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Are the next luxury apartments… offices?

Posted by Ri Prasad on Friday, June 24, 2022 at 5:59 AM By Ri Prasad / June 24, 2022 Comment

Are the next luxury apartments… offices?
Source: Business Insider
Hines, a global real estate investment and development firm, has big plans for one of Salt Lake City’s downtown landmarks. The firm intends to convert the South Temple Tower, a 24-story office building, into 255 luxury apartments. While this project is Hines’ first venture into office-to-residence conversions, projects like this have been popping up across the country for months. 
  • Nationwide, offices haven’t been this empty since 1994
  • With rental rates breaking records in many cities, investors see multi-family properties as better income sources than office buildings
  • Office conversions come with their fair share of zoning challenges, but in places like New York City, the critical need for housing has encouraged city officials to allow more of these conversion projects

Our take
People are always going to look for creative ways to make money. In times like these when the market is shifting, they get even more creative. You can bet every city in the world will have their eyes on this project. If it goes well, we could be seeing a huge wave of new downtown converted residences hitting the market in the coming years.

Tags: Commercial, Finance, Investor

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