Give us 5 minutes & you'll learn how to convert offices to housing (How Calgary converted 2.6M Sq Ft to 2,700+ units ) with Kelly Farrell from Gensler

On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, Kelly Farrell, Managing Director and Principal Global Residential Practice Area Leader at Gensler, demystifies the technical and development roadmap for converting underutilized office space into affordable and workforce housing. With nearly 30 years of experience, Kelly provides an authoritative guide on how Adaptive Reuse Ordinances (ARO) and specific municipal incentives are transforming the "missing middle" and downtown cores across North America.The Blueprint for Office-to-Residential Conversions in 2026How does an Adaptive Reuse Ordinance (ARO) speed up housing production? An ARO removes the "crazy, messy stuff" from the development cycle by allowing conversions to happen "by right" rather than through a lengthy discretionary approval process. In cities like LA, these ordinances allow developers to convert assets as young as 15 years, bypassing the hurdles that stall projects for years.What are the most effective financial incentives for municipalities to use? Kelly highlights that successful models, like the one implemented in Calgary, provide upfront cash incentives to bridge the financial gap inherent in complex conversions. Other effective tools include TIF districts and property tax abatements. From a city's perspective, abating property taxes for affordable housing is a powerful lever because it requires no upfront municipal cash while allowing developers to recover their investment over the long term.Why are office conversions considered a superior alternative to ground-up development? In dense markets like NYC, converting an existing building can preserve "zoning density" that no longer exists for new construction. For example, a developer might keep a 30-story tower in a zone where new buildings are now capped at 15 stories. Because property taxes are based on asset value, and many vacant office buildings are trading at 50% of their 2019 values, the lower tax basis helps the financial feasibility of the residential conversion.Why This Episode Matters for Affordable Housing Development:For developers, city officials, and housing advocates, this episode debunks the myth that office-to-residential conversion is structurally impossible. Kelly proves that with the right support, cities can convert millions of sq. feet of unused space, Calgary has converted 2.6M square feet into over 2,700+ homes. We covered the technical specificity needed to make decisions about asset acquisition & municipal policy.Common Questions This Episode Answers:Why does it makes financial sense for cities to convert offices to housing?What are the MYTHS around office-to-residential conversion?How to best use space unique to office buildings for residential conversions (amenities)?What type of buildings are best for office conversions?What doesn’t work for an office to residential conversion?How to overcome construction challenges with office to residential conversions?What is an Adaptive Reuse Ordinance & how does it work? What building code upgrades are required for a residential conversion? What financial incentives (e.g., property tax abatements) are the best for office conversions? Connect with Kelly → https://www.linkedin.com/in/kellyfarrell3/ See Gensler's projects below:Pearl House:https://www.gensler.com/projects/pearl-house-160-water-streetThe Residences at Rivermark:https://www.gensler.com/projects/the-residences-at-rivermark?q=Baton%20Rouge,Studies:Pew + Gensler Flexible Co-Living Housing Feasibility Study:https://www.gensler.com/doc/pew-gensler-flexible-co-living-housing-feasibility-study.pdfHow a New Vision for Flexible Co-Living Conversions Can Support Housing Affordability:https://www.gensler.com/blog/pew-study-flexible-office-to-co-living-conversions?q=PewPlease DM any content suggestions to Kent Fai He, affordable housing developer, and host of the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments.Disclaimer: This content is for informational & entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. It is not an offer or solicitation for any investments. Always do your own research before making investment decisions.00:00 Podcast Trailer05:00 Kelly's Background13:31 How Can Cities Incentivize Converting Offices to Homes for the Working Class?15:24 How to Incentivize Development? Simplify Zoning Code!20:02 Office-to-Residential REAL Life Example: Calgary24:32 What Building Improvements Are Required When Converting Offices to Homes?25:51 Why Density Bonuses Help Office Conversions Make Economical Sense!26:39 How Developers Optimize Office Buildings for Comfortable Apartments44:22 How To Convert Offices to Homes FASTER: Adaptive Reuse Ordinance!46:21 Housing as a basic human right!51:29 Why Is Affordable housing so hard to solve?