Why Adaptive Reuse Is Gaining Momentum in 2025
As of the third quarter of 2024, the U.S. office vacancy rate hit 20.1%—the highest it’s been in 30 years. Thanks to remote and hybrid work becoming the norm after COVID-19, many office buildings, especially older Class B and C spaces, are sitting empty. These underused spaces don’t just feel a little sad—they’re also dragging down property values and cutting into local tax revenues.
Meanwhile, we’re facing a major housing crunch. The U.S. needs an estimated 4.3 million new housing units by 2035 to meet demand. So why not repurpose some of these empty buildings into much-needed homes?
That’s where adaptive reuse comes in. It’s expected to really take off in 2025 as a creative and practical way to solve two big problems at once—housing shortages and declining downtowns. Let’s take a closer look at why it’s getting so much attention.
Why Adaptive Reuse Makes Sense:
- We Need More Housing—Fast:
With the current housing shortage, converting office buildings and other underused structures into apartments or mixed-use spaces is one way to add units quickly. - Remote Work Changed the Game:
Offices aren’t what they used to be. With fewer people commuting in every day, there’s a lot of space sitting idle—just waiting for a second life. - It’s Greener Than Starting From Scratch:
Adaptive reuse is often more sustainable than new construction. Reusing materials and structures cuts down on waste and aligns with ESG goals. - It Can Revive Downtowns:
Bringing people back into urban centers—especially to live—can breathe new life into restaurants, shops, and small businesses. - It Can Be Cost-Effective:
In many cases, reworking a building can be cheaper than demolishing it and building from the ground up—especially in high-cost areas.
Trends to Watch:
- Office-to-Apartment Conversions:
One of the most common reuse projects we’re seeing is turning vacant office towers into residential apartments. - More Than Just Offices:
Old malls, warehouses, and even parking garages are now on the table for conversions. - Sustainability in Focus:
Many projects are designed with energy efficiency and green building practices in mind. - Mixed-Use Magic:
Combining residential, retail, and commercial space makes these developments feel like mini-communities. - Helping Communities Thrive:
Adaptive reuse projects often bring more than just housing—they create jobs, support local economies, and reenergize neighborhoods.
Real-Life Examples:
- 300 Pine project we worked on which was previously an eight story Macy’s and converted to office and retail.
- Pearl District Portfolio in Portland’s original creative district adapts eight distinct buildings for mixed-use purposes, including office and retail space, while honoring the Pearl District’s history
- Fire Station No. 7 in Portland involved repurposing a former fire station for both retail and office use, demonstrating the potential of adaptive reuse to stimulate commercial activity and investment
- Oregon Casket Building in Old Town Portland involves converting a vacant commercial building into residential units, aligning with the goals of the Old Town Action Plan
- At The Arcade mall in Providence, Rhode Island, developers came in and built 48 micro units on the second and third floors
- A former Sears store turned into a vibrant mixed-use development in Memphis, TN
- A historic factory transformed into a tech hub in Brooklyn, NY
- A vacant office building reimagined as a 218-unit apartment complex in Lakewood, CO
- The Salt Lake Hardware Building in Utah, which evolved from warehouse to office to mixed-use project
Adaptive reuse isn’t just a trend—it’s a smart, sustainable solution to some of today’s biggest urban challenges. And in 2025, we’re going to see a lot more of it.