Adaptive Reuse: From Desks to Doorways
In the first episode of "Property Pointers: Real Estate Law Simplified," Real Estate attorney Jake Lebovic discusses opportunities for adaptive reuse projects in Los Angeles. He explains how converting underused office buildings into residential spaces presents a promising solution to the city's dual challenges of housing shortages and high office vacancy rates. He also highlights the recently updated LA Adaptive Reuse Ordinance, which provides incentives and a clear path for developers looking to undertake these projects. Mr. Lebovic shares his hope that through adaptive reuse, property owners and developers can help alleviate the housing crisis while revitalizing aging commercial real estate across Los Angeles.
Jake Lebovic: Hi, everyone, I'm Jake Lebovic. I'm a real estate associate at Holland & Knight based in Century City. And today I want to talk about converting office buildings into residential spaces in Los Angeles. As you may know, LA is facing a significant housing shortage compounded by the recent wildfires and high office vacancy rates. The situation presents an opportunity to address both issues through office-to-residential conversions, also known as adaptive reuse projects.
Converting offices to apartments isn't without challenges. Office buildings often have large floor plates, making it tough for natural light to reach central areas. Plus, older buildings need retrofitting to meet modern standards. But there's a way to make it work. Targeting midsize, mid-rise buildings with slimmer floor plates and lots of windows, often built pre-World War II, can make these conversions more feasible. Buildings with floor-to-ceiling windows or those facing open streets are ideal. These features let natural light reach deeper into the space, making it better for residential use.
Recent amendments to the LA Adaptive Reuse Ordinance adopted by [the] City Council in December 2024 make these projects more viable. These changes provide a framework for navigating structural limitations and incentivize conversions of well-suited buildings.
In short, converting offices to residential spaces could help solve LA's housing crisis and boost the financial health of office building owners. By targeting the right buildings and using the new ordinance, we can create much-needed housing and revitalize LA's office space.