Apartments being converted from office buildings reaches record high

The number of apartments converted nationwide from office buildings reached a record high of 70,700 units and these conversions are also increasingly targeting newer office buildings.   

The office-to-apartment conversion niche is expanding across California as well, but not exactly where most would expect. While Los Angeles leads this transformation, several smaller cities, including Long Beach and Goleta, are converting more office space into housing than major hubs like San Francisco and San Diego. 

Here’s a breakdown: 

Across the state, 16,236 apartments are in the pipeline, with 5,892 units coming from repurposed office buildings. 

• Los Angeles leads the state with 2,923 future apartments coming from office conversions, the highest in California. 

• Long Beach follows with 424 apartments set to be converted from former office buildings, more than double the number in San Francisco. 

• Goleta is also making a significant impact, with 374 apartments in the pipeline from office conversions, outpacing San Diego. 

• San Francisco’s office-to-apartment conversions are under 300 apartments, on par with cities like Emeryville and Encino, smaller markets that are seeing just as much transformation. 

• San Diego’s pipeline is similar to Monterey’s, showing that office conversions are not concentrated in major hubs alone. Same goes for San Jose, Woodland Hills, and San Rafael  

While major business hubs struggle with complex zoning and development hurdles, smaller markets are repurposing office spaces at a faster pace, reshaping their local housing markets.

For a deeper dive into the data and key projects across the state, check out our full report here.

RentCafe.com is a nationwide apartment search website and a part of Yardi. Our original city-based research, insights, and in-depth analysis of the real estate market have been used in stories featured on major media publications across the U.S.