Flexible Co-Living: A Solution to Office Conversion Costs and Housing Supply
As a real estate expert at Duke Properties, I, Albert Dweck, am excited to share insights from a recent study that highlights a promising solution to two pressing urban challenges: rising office vacancies and constrained housing supply. The study, conducted by the Pew Charitable Trusts and design firm Gensler, explores the potential of “flexible co-living” as an efficient and cost-effective approach to converting vacant office spaces into much-needed housing.
The Concept of Flexible Co-Living
Flexible co-living, or dormitory-style housing, involves creating apartments where residents share common areas such as kitchens, bathrooms, laundry, and living spaces. This innovative model can significantly reduce the costs and complexities associated with traditional office-to-residential conversions. By utilizing shared spaces, the conversion process becomes more streamlined and affordable, making it a viable option for addressing the housing shortage.
The Current Landscape
The COVID-19 pandemic has fundamentally altered the way we work, with many employees continuing to work remotely or in hybrid setups. This shift has led to a surge in office vacancies, with the national office vacancy rate projected to reach around 20% by the end of this year, according to CBRE. At the same time, the housing market is grappling with a severe supply shortage, with the US short by an estimated 2.3 million to 6.5 million housing units.
Benefits of Flexible Co-Living
The study suggests that flexible co-living could lower construction costs by 25%-35% compared to traditional office conversions. This reduction in costs can translate to more affordable rents, making housing accessible to individuals earning well below the median income in their areas. For instance, in Seattle, a proposed co-living unit could rent for around $1,000 per month, significantly lower than the typical studio apartment rent of $1,530.
Case Studies and Potential Impact
The study identifies Denver, Minneapolis, and Seattle as prime candidates for implementing flexible co-living conversions. These cities face high office vacancy rates, elevated median rents, and relatively few regulatory barriers, creating an ideal environment for such transformations. By converting unused office spaces into co-living units, these cities can address both the surplus of vacant offices and the shortage of affordable housing.
A Win-Win Solution
Flexible co-living presents a win-win scenario for urban centers struggling with empty office buildings and housing shortages. It offers a scalable and sustainable solution that can revitalize downtown areas, provide affordable housing, and make efficient use of existing infrastructure. As cities continue to evolve in the post-pandemic era, innovative approaches like flexible co-living will be crucial in shaping resilient and inclusive urban communities.
In conclusion, the findings of this study underscore the potential of flexible co-living as a transformative approach to urban development. By embracing this model, we can create vibrant, affordable, and sustainable living spaces that meet the needs of our changing