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Adaptive Reuse Update: New Federal Incentives and Emerging Trends

The changes to the office space landscape spurred by the COVID-19 pandemic led to deserted downtown areas and abandoned business districts throughout the nation. In second quarter of 2023, office vacancies across the country hit a 30-year high at over 18%, while residential rents continued to remain near record highs across U.S. cities, perpetuating the ongoing housing affordability crisis. Many policymakers and private sector leaders, like the American Planning Association and U.S. Green Building Council, have been studying ways to reinvigorate our cities by repurposing vacant commercial buildings into residential projects to increase housing affordability and offer the added bonus of reduced emissions.