Paris and DC Convert Empty Offices Into Apartments

Empty office blocks in major cities such as Paris, Washington DC, and London are undergoing significant transformations into residential apartments as remote work alters urban real estate demands. In the French capital's business district of La Défense, authorities have announced initiatives to convert up to a fifth of their commercial towers into housing.

Roland Cubin, deputy CEO of French real estate firm Groupama Immobilier, notes that while turning spaces like the nine-storey Le Diamant building into upscale flats sounds appealing, developers face notable structural hurdles. These challenges include low ceilings, increased plumbing requirements, and large windowless interior spaces in the middle of each floor that typically can only serve as access routes for stairs and lifts.

Post-pandemic remote work trends have caused vacancy rates in La Défense to climb to between 14% and 15%, while overall demand for office space in Paris has declined by nearly a third over the last five to six years. Pierre-Yves Guice, CEO of Paris La Défense, explains that the district needs to evolve beyond a single-use employment zone to retain businesses and remain appealing in Western Europe.

Low office occupancy rates are driving major cities to transform commercial towers into residential apartments.

Similar revitalization efforts are underway across the United States. In cities like Washington DC and New York, tax cuts, private investments, and relaxed planning restrictions are fueling extensive office conversions. Washington DC aims to add 15,000 new downtown residents by 2028, largely through these residential conversions rather than building demolitions. Developers in these regions have tackled internal lighting constraints by constructing atriums and light sinks within the older structures.

Similarly, the United Kingdom has experienced a boom in conversions following relaxed planning rules and tax incentives. A report from Knight Frank indicated that office-to-residential projects in London surged to levels 60% higher than those recorded before the Covid-19 health crisis.

Why it matters

This trend addresses the rising vacancy rates in major commercial districts caused by the rise of remote work. By converting empty offices into flats, cities are actively reshaping their urban landscapes to combine residential living with nearby leisure amenities such as restaurants, cinemas, and bars.