On September 1, 2023, Law360 quoted Kedrick Whitmore on the rise of demolition and office-to-industrial conversions.
According to the article, the turn to remote work has led to rising vacancies and declining values in the office sector, while higher interest rates and reduced liquidity have put financial strain on office landlords. As office owners look to shore up their portfolios, only a select few buildings fit the profile for a residential conversion. Some landlords are instead deciding to tear down recently acquired or newly renovated office buildings, not only office buildings that are obsolete.
Whitmore explains that converting an existing office building for use other than that for which it was designed does not often work. “The physical structures of existing buildings are not always well-suited to industrial, and it's even more acute than for residential," Whitmore said. "Knocking down and doing something new is often more viable because you can start over with a purpose-built structure.