The Blubber

New York City is unveiling an initiative aimed at transforming vacant office spaces into up to 20,000 new housing units. This strategy involves establishing a multi-agency group to assist developers in navigating regulatory hurdles and rezoning a specific section of Manhattan, referred to as Midtown South.

These actions follow the efforts of Mayor Eric Adams and Governor Kathy Hochul to address the housing shortage in the state. However, their ambitious program faced resistance from fellow Democratic lawmakers in Albany earlier this year, and a substantial portion of Adams's plan still requires state approval.

Mayor Adams emphasized the city's proactive stance, stating, "We could not just sit back and just lick our wounds. We will roll out what we can do here in the city."

Cities such as New York, Boston, and San Francisco are grappling with the dilemma of repurposing office buildings left vacant due to the shift towards remote work, coupled with the pressing issue of affordable housing shortages that are driving rent prices higher. The conversion of office spaces into housing is a complex and costly endeavor, prompting city officials to explore solutions like tax incentives, streamlined approvals, and other encouragements to facilitate the conversion process.

As part of New York City's plan, office buildings constructed before 1990 would be eligible for conversion into housing, replacing the previous cutoff years of 1961 and 1977, which depended on the area. This expansion would encompass an additional 136 million square feet, roughly equivalent to the office space in the entire city of Philadelphia. Additionally, the proposal seeks to allow office-to-housing conversions in any residential construction-permitted area within the city.