Downtown Office Conversions: Hope or Hype?
With office vacancy near 24%, three downtown towers are slated for residential overhaul. But structural realities mean not every building can be saved.
The narrative is intoxicatingly simple: take empty downtown office buildings and turn them into desperately needed apartments. Following the lead of cities like Calgary and Chicago, developers in Phoenix have announced plans to convert three Class B and C office towers in the central business district.
The Floorplate Problem
The grim reality of commercial architecture is that most modern office buildings are structurally incompatible with residential use. The primary issue is the "floorplate"—the distance from the windows to the elevator core. Office buildings built in the 1980s and 90s often feature massive, deep floorplates designed for cubicle farms under fluorescent lights.
Residential building codes require bedrooms to have operable windows. If a building is too deep, you end up with "bowling alley" apartments where the majority of the square footage is windowless interior space.
| Project | Original Use | Planned Units | Est. Cost/Unit |
|---|---|---|---|
| The Monroe (111 W Monroe) | Office (1960s) | 140 | $320,000 |
| Central Plaza | Office (1970s) | 210 | $385,000 |
Plumbing and MEP Overhauls
Beyond floorplates, the mechanical, electrical, and plumbing (MEP) systems require total replacement. Office buildings have centralized bathrooms; apartments require plumbing lines to every single unit. Core-drilling through post-tension concrete slabs is an expensive, high-risk endeavor.
Frequently Asked Questions
- Are there government subsidies available?
- Currently, Phoenix does not offer direct cash subsidies for conversions like Calgary does. However, historic tax credits are viable for pre-1970 structures.