One of the lasting impacts of the COVID-19 pandemic is that over 25% of households have at least one person working remotely. This leaves a lot of vacancies in office buildings that were previously bustling with in-person workers. While many of these offices have remained empty for months, some have been developed for alternative use. Here's a closer look at what's happening to empty office spaces.
Affordable Housing
Many, especially those living in urban areas, have felt the squeeze of affordable housing. To alleviate rising home prices and offer more affordable housing, the government has launched an initiative to transform empty office spaces into affordable housing. This effort is focused on creating housing near transportation hubs, which includes subway stations and bus terminals. Not only will this effort result in more affordable housing, but it is expected to revitalize metropolitan areas that have emptied over the last 3 years.
Residential Spaces
Housing inventory remains low, but demand remains high, so some building owners are seizing this opportunity to convert their empty offices into residential spaces. While there are challenges that come with converting office buildings into multifamily residential properties – plumbing, windows, and HVAC for each unit – property owners can benefit from not having to build from scratch.
Coworking Spaces
Property owners are also converting vacant offices into coworking spaces. Coworking spaces are attractive to work-from-home-ers who are looking for a change of scenery or collaboration one or two days per week. Additionally, small businesses and sole proprietorships are moving to coworking spaces to avoid the high overheads that occur when leasing a centralized office. A bonus for building owners is that coworking offices are rented out on a short-term basis and can generate higher revenue than traditional offices. However, managing a coworking space and keeping it at capacity (and profitable) can be a challenge.
Trending: Vertical Farms
Although less common than affordable housing and coworking spaces, empty offices are also being converted into vertical farms. During the 21st century, vertical farming has become increasingly common in urban areas where open land is scarce. Vertical farming avoids the challenges that occur in traditional farming, such as irregular precipitation and damaging weather. By growing crops indoors and focusing on those that can thrive in this artificial environment, it's possible to mitigate the risks and unpredictability associated with growing crops outside.
With so many offices still lying vacant, there's a good chance that more alternative uses for these properties will be discovered in the coming years.
You might also enjoy reading:
How To Find and Hire Contractors
Do Student Loans Affect your Ability to Buy a Home
2024 Market Predictions: Will Home Prices Drop?