Quote:
Originally Posted by twister244
Also, it does make me wonder how much of an impact these residential conversions are having on proposed new residential construction? With so much office space being sought out to convert to residential now, it's probably having some impact on the demand for construction on new buildings, no?
Interesting article though.....
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Maybe a little in the aggregate, but the hottest areas for residential (West Loop, River North) aren't seeing the same pace of conversion proposals. I expect those areas will continue to see a slow trickle of new residential construction since a purpose-built resi tower can capture top-dollar rents: better-quality units with more natural light, balconies, and other amenities.
For some reason as a city we have decided to encourage and even subsidize the loss of Class B/C office space in the Loop (close to multiple transit options), pushing it into the shoulder neighborhoods that have worse transit. Really it's the shoulder areas where resi conversions should be incentivized, and Loop Class A properties allowed to depreciate to Class B/C so that the best transit access is afforded to office workers at large and small companies alike. But of course that wouldn't do anything for the most influential office landlords.
IN the abstract I'm fine with downtown becoming more of a mixed-use neighborhood with dense residential alongside offices, but in reality it seems like the effect of this is to push small companies into other areas of the city where workers are far more likely to drive and park.
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