Empty office buildings are blank slates to improve cities

It's been three years since the Covid-19 pandemic prompted many to begin working from home, but the trend has continued to show its staying power even as other aspects of society have returned to pre-pandemic conditions. Because of this, many office buildings in cities have remained empty, leaving city planners and officials scrambling to figure out what to do about the empty spaces.

Should buildings be repurposed?

According to the real estate company JLL, U.S. office vacancy went over 20% in the first three months of 2023, with some cities hitting 25% vacancy. However, "these figures understate the severity of the crisis because they only cover spaces that are no longer leased," The Atlantic wrote. "Cities will have to survive and adapt," the source continued. "In a world of consumer choice, locations must think like consumer products."

While there is no "silver bullet or even a series of bullets that can solve the office-vacancy crisis," cities are exploring a number of options being tested to fill the spaces, Dror Poleg, an economic historian and the author of "Rethinking Real Estate," told The Washington Post. Some believe that empty buildings will continue to stay empty. "We will not be able to repurpose offices so they can serve different functions on off days," Tim Oldman, CEO of global workplace insights company Leesman, told BBC. "They are highly tuned to the tenant organization's needs and their legal obligations to their employees."

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How could empty buildings be repurposed?

The most popular option that has been considered is turning the spaces into housing, especially given the urgent need to combat the housing crisis, however, many newer buildings lack the "sunlight or plumbing to easily carve the space into apartments." Still, approximately 30% of office buildings in North America could potentially be repurposed for residential purposes, The Atlantic reported. They would require renovations to become suitable for living, including prepping the spaces for the electrical and plumbing needs of inhabitants. "But office buildings that are due for a remodel or upgrade anyway could be great candidates for this type of reinvention," wrote The Conversation.

Other ideas include healthcare facilities, data centers, and even schools. Office facilities could be particularly good for education purposes as they contain "modern and colorful hallways, unusually big windows with lots of natural light," and "some covered parking for teachers," per the Post. Many options are also considered "office-adjacent" facilities, which wouldn't require much renovation to implement, like "college classrooms, doctors' offices or small distribution centers," which "could more easily replace rows of cubicles, particularly if tenants are willing to pay expensive rents." Some bigger businesses have also subleased portions of their commercial space "to firms looking for smaller spaces after vacating larger offices," but this could "mean there are not enough desks or meeting spaces for everyone," BBC continued.

More unorthodox uses for office spaces could include vertical farms and health clubs, however, repurposing these spaces for these types of uses is less likely because "brokers and property owners also have to be willing to take a risk," the Post continued.

What happens if buildings stay empty?

Without companies being willing to revamp these office spaces, there is a risk of the spaces staying empty. This can impact both the public as well as landlords and developers, as the presence of empty buildings can discourage travel to cities and create "ghost towns across city centers," per BBC. To prevent this, cities must "double down on what only the biggest cities can offer — walkable streets, car-free transportation, and cultural and intellectual diversity," The Atlantic remarked.

The empty buildings can also cause property owners to "experience reduced rental income, which can have a negative impact on the valuation of the property," Professor at Cornell University Peter Liu explained to Cornell BusinessFeed. Opting to repurpose the spaces "can help them adapt to the evolving market dynamics and capitalize on areas experiencing stronger growth."

As many companies have remained in a state of limbo over work-from-home policies, it's still uncertain whether unused office space is temporary or the new normal. However, "Covid changed the worker mentality," Cornell Professor Crocker Liu told Cornell BusinessFeed. "I don't think people are thinking enough about providing amenities that will make the return to the office better."