June 24, 2025
As a realtor working in the heart of New York City, I can tell you—we are watching a truly historic shift unfold right before our eyes. According to a recent CBRE report, NYC is seeing a massive rise in office-to-residential conversions, especially across Midtown Manhattan.
Roughly 8.3 million square feet of office space is now in the process of being transformed into apartments and condos. That’s not just one or two fancy buildings—it’s a pipeline stretching all the way from Battery Park to Central Park. And Midtown alone accounts for about 60% of this activity.
What’s driving this? Many of these office buildings are older (the median age is 68 years), and over half were built after 1961. Instead of letting them sit underused, developers are snapping them up and turning them into much-needed housing.
Of course, this isn’t a magic fix for Manhattan’s office glut. But by modernizing some of the city’s aging office inventory, the remaining buildings become more competitive, and at the same time, we get a fresh injection of residential units in areas that were once strictly for business.
The numbers are eye-opening: if all current and proposed projects go through, we’d see about 16.5 million square feet of office space disappear from the market. That could drop Manhattan’s office availability rate by 200 basis points from where it stands now at 18%.
There are still big hurdles—things like long-term leases and existing tenant agreements make these projects tricky. But recent regulatory pushes, like the “City of Yes” initiative and the Midtown South Mixed-Use Plan, are opening the door for more adaptive reuse and flexible zoning.
At the end of the day, this isn’t just about swapping offices for apartments. It’s about reimagining the city’s future: creating vibrant, mixed-use neighborhoods, supporting housing goals, and making NYC a more balanced and livable place post-pandemic.
As a realtor, I’m excited to see how these shifts will open up new opportunities, both for buyers looking to live in reimagined spaces and for investors looking to tap into this transformative wave. New York City is once again proving that it knows how to reinvent itself.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
