A report by the Kaplan Group indicates Midtown Manhattan could convert over 78,000 vacant office spaces into apartments. This transformation comes as New York City faces a significant housing shortage and increasing rents. The study uses data to calculate potential housing yields based on office inventory and vacancy rates. As the national office vacancy rate rises to 20.8%, there is a growing movement among urban planners to repurpose underused commercial real estate to address the housing crisis, stabilize rents, and revitalize neighborhoods.
Midtown Manhattan has the highest potential of any U.S. city to convert empty office buildings into apartments, with more than 78,000 potential units available.
The Kaplan Group's study used data from Cushman & Wakefield's report to evaluate potential apartment yield based on square footage and conversion ratios.
As office vacancies continue to rise nationwide, the national office vacancy rate climbed from 19.7% in the first quarter of 2024 to 20.8% in the first quarter of 2025.
Transforming unused offices into apartments could help stabilize rents and revitalize neighborhoods, addressing the housing shortage faced by many New Yorkers.
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