How Office-to-Apartment Conversions Are Reshaping Downtowns in 2026

In this episode of The Business of Real Estate, Lucas and Luna explore the growing trend of converting empty office buildings into residential apartments. They focus on a specific case in downtown Nashville where a 1980s office tower is being transformed into 350 rental units. The hosts break down the economics: the conversion cost is about $180 per square foot, versus $250 for new construction, and the project qualifies for federal historic tax credits. They discuss structural challenges like floor plates designed for cubicles, not apartments, and the need for light wells and plumbing risers. Lucas explains why office-to-residential conversions are suddenly viable in 2026: higher office vacancies, lower commercial property values, and city zoning changes that waive parking requirements. Luna brings up the role of interest rates and whether the math works in other cities like San Francisco and Chicago. The episode closes with a look at what this means for downtown revitalization and the future of mixed-use neighborhoods. #OfficeConversions #AdaptiveReuse #Nashville #DowntownRevitalization #CommercialRealEstate #Multifamily #HistoricTaxCredits #ZoningReform #ConstructionCosts #UrbanPlanning #MixedUse #2026RealEstate #BuildingRetrofit #ResidentialConversion #PropertyDevelopment #Business #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo