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The article above makes a few key points about some of the hurdles to conversation. Many of the points arguing for caution about expecting extensive conversions are:
1) DT office buildings need significant adoption to become residential. Plumbing needs to be redone, deep interior layouts. Few buildings are ideal, in many cases it's better to knock down and rebuild. A 300k office building maybe need to become a 270k residential projects
2) DCs IZ program creates additional hurdles. Not only do residential projects often require reducing the footprint to create courtyards for lighting, but a share of the property (8 to 10 percent)must be lease at artificially low rents with extensive tenet protection laws. An office building can be leased 100% market rate with weak tenet protection laws.
3) DCs new abatement program requires addition affordable components (15%). So some developers are skeptical it will make sense to use the abatements given any tax break will be offset, at least in part, by additional below market rental units.
3) Raising the height limit could allow project the ability to go higher and add more units to offset costs. Arlington is seeing lots of these in Crystal City and Rosslyn. 10-15 story office buildings are being replaced by 25-30 story residential projects. But, a hight limit increase is unlikely in the near term.
4) Raising interest rates and high construction costs undermine profitability of conversations.
5) Office rents have fallen, but maybe not enough to justify conversations. DC ultimately has constraints on supply given the height limit. It may be better to just sit on empty buildings for a few years. Buildings would be not generating revenue during a conversation anyways.
I would like to see more conversions and hope these hurdles are exaggerated or can be overcome. I think it will ultimately we will end up with a mix of some modest number of conversions, and weaker office market with lower rents and higher vacancy. It may attract more nonprofits and suburban offices downtown.
I notice many of the proposed conversations are in the Golden Triangle area. It seems like Golden Triangle may be the downtown neighborhood most likely to become a mixed used popular neighborhood a la NOMA/Navy Yard, etc. You already have office workers, GW students, proximity to Dupont Circle and Georgetown/West End, metro access, plenty of food and coffee despite closures, pharmacies, nightlife along Connecticut and M, new Golds Gym, etc. There's a sense of place due to the Golden Triangle branding (the haikus, art work, etc.) that is ubiquitous in the area. There's also potential for more tech businesses and workers to locate in the neighborhood. It just needs a more permanent residential population and supermarkets IMO to become a "real" neighborhood.
I notice many of the proposed conversations are in the Golden Triangle area. It seems like Golden Triangle may be the downtown neighborhood most likely to become a mixed used popular neighborhood a la NOMA/Navy Yard, etc. You already have office workers, GW students, proximity to Dupont Circle and Georgetown/West End, metro access, plenty of food and coffee despite closures, pharmacies, nightlife along Connecticut and M, new Golds Gym, etc. There's a sense of place due to the Golden Triangle branding (the haikus, art work, etc.) that is ubiquitous in the area. There's also potential for more tech businesses and workers to locate in the neighborhood. It just needs a more permanent residential population and supermarkets IMO to become a "real" neighborhood.
Agreed. It's probably been the most active part of Downtown post pandemic. A lot of it has to do with the fact that Golden Triangle has the bulk of office space in downtown and it's close to neighborhoods that already had a strong residential base (Georgetown, West End, Dupont Circle, Foggy Bottom- though it's "residents" are overwhelmingly students).
I do wish there were more conversions taking place for the East End of Downtown (East of 15th St NW). That part imo has the potential to be more catalytic given the destination entertainment, retail and destination restaurant offerings in the area.
Per the article below, here are two more potential office-to-residential conversions being marketed to buyers in downtown's East End:
- 700 11th St NW (adjacent to the Metro Center metro station) - 300,000 square foot building - around 300 units
- 450 Fifth St NW - 500,000 square foot building - around 500 units
Post Brothers buys 2100 M St NW, a 300,000 square foot office building on the border of West End/Golden Triangle neighborhoods and will likely convert it to residential.
1970s era office building near Scott Circle on Mass Ave NW to be converted into 157 unit residential conversion
Building is near Scott Circle and is near 16th St NW on Massachusetts Ave. Expected to be 157 units. No retail component will be included on ground floor.
DC Church near the White House to add 10 story residential addition
Not a straight office to resi conversion. But the Church of the Epiphany at 1317 G Street NW (2 blocks away from Metro Center) plans to demolish the rear portions of the church and build a 10 story plus penthouse building addition. Expected to be 74 units of all affordable housing.
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