Which Cities Are Converting the Most Commercial Spaces Into Apartments?

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Cities around the world are grappling with the ever-changing landscapes of their urban environments, and in response to shifting trends and needs, several have started converting commercial spaces into residential apartments in an effort to promote urban living and utilize unused spaces.

New York City, known for its iconic skyline and bustling streets, has also been at the forefront of this movement. The city boasts a long history of adaptive reuse, especially in neighborhoods like SoHo and Tribeca where former industrial lofts have been transformed into trendy living spaces. More recently, with the decrease of in-person retail shopping and an increase in remote work due to the COVID-19 pandemic, there has been a surge in reimagining underused commercial properties. As of 2021, proposals have been put forward to convert millions of square feet of Manhattan office space into residential use.

San Francisco is another city actively converting commercial spaces into apartments. Faced with a severe housing shortage and sky-high prices coupled with a significant downturn in office space demand post-pandemic, San Francisco is exploring ways to allow conversions more extensively. The concept is to alleviate housing shortages while taking advantage of the vacancies in what used to be thriving business districts.

Toronto has seen a rise in “live-work” units that blend commercial utility with residential comfort. Former factories and warehouses in areas like Liberty Village are being turned into loft apartments that facilitate both living and small-scale commerce. This trend has expanded as more businesses downsize their physical presence or transition to remote models, leaving more commercial spaces ripe for conversion.

Across the Atlantic, London is also adopting similar strategies. With its own version of adaptive reuse called “permitted development rights,” the city allows certain changes from commercial to residential use without full planning applications. Particularly notable changes are happening around East London’s Tech City where some former office buildings are now hosting residents instead of startups.

Tokyo’s shrinking population has led it to repurpose not only commercial but also public buildings into residential units. Unused schools and offices find new life as apartments, capitalizing on existing infrastructure without contributing to urban sprawl.

Lastly, Berlin’s approach involves both repurposing old commercial spaces and constructing new buildings that blend commercial premises on lower floors with living spaces above. Kreuzberg and Neukölln are cool hubs where historical structures blend with modern living.

In all these cities, converting commercial spaces into apartments is proving to be an innovative solution addressing both urban development imperatives and housing needs amidst changing economic circumstances. It allows cities to maintain their vibrancy by ensuring that living quarters remain well-occupied even as workforce habits evolve.

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