{"id":1284,"date":"2025-10-31T17:26:52","date_gmt":"2025-10-31T22:26:52","guid":{"rendered":"https:\/\/www.brickellsold.com\/blog\/boston-bets-on-office-space-to-ease-housing-crunch-and-more-than-a-dozen-projects-are-underway\/"},"modified":"2026-04-13T10:45:17","modified_gmt":"2026-04-13T14:45:17","slug":"boston-bets-on-office-space-to-ease-housing-crunch-and-more-than-a-dozen-projects-are-underway","status":"publish","type":"post","link":"https:\/\/www.brickellsold.com\/blog\/boston-bets-on-office-space-to-ease-housing-crunch-and-more-than-a-dozen-projects-are-underway\/","title":{"rendered":"Boston Bets on Office Space To Ease Housing Crunch\u2014and More Than a Dozen Projects Are Underway"},"content":{"rendered":"<p><\/p>\n<p>Boston\u2019s <a href=\"https:\/\/www.brickellsold.com\/blog\/miami-poised-for-potential-influx-of-wealth-as-high-net-worth-new-yorkers-evaluate-relocation-optionsmiamis-luxury-real-estate-sector-is-closely-observing-developments-in-new-york-city-parti\/\">real estate<\/a> market is showing its trademark resilience\u2014and now, a wave of new housing is set to rise from the city\u2019s empty office buildings.<\/p>\n<p>With 19 office-to-residential conversions approved and several already under construction, Boston is betting big on adaptive reuse to tackle its housing shortage and breathe new life into its downtown.<\/p>\n<p>\u201cBoston\u2019s market remains incredibly resilient,\u201d <strong>George Sarkis<\/strong>, co-founder of The Sarkis Team at Douglas Elliman, tells Realtor.com\u00ae. \u201cWe\u2019re still seeing strong demand, especially in prime neighborhoods like Back Bay, the South End, and Seaport, where inventory continues to lag behind buyer interest.\u201d<\/p>\n<p>Sarkis says that while higher interest rates have cooled some activity, prices remain elevated because supply can\u2019t keep pace with demand. <\/p>\n<p>\u201cThe combination of Boston\u2019s strong economy, world-class universities, and job growth keeps the market competitive,\u201d he adds. \u201cWe\u2019re overdue for innovative solutions to open up new housing opportunities\u2014and this is a smart one.\u201d<\/p>\n<p>Boston\u2019s Office to Residential Conversion Program is designed to do exactly that. It offers developers generous incentives\u2014including a 29-year, 75% residential tax abatement, as-of-right zoning in downtown areas, and a fast-tracked Article 80 permitting process\u2014to make the math on conversions work.<\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">The city of Boston has approved several office conversion projects to provide more housing. <span class=\"image-credit\">(City of Boston)<\/span><\/figcaption><\/figure>\n<p>\u201cThe initiative has the potential to make a real difference, if executed effectively,\u201d says Sarkis. \u201cAdaptive reuse of underutilized office space could help ease pressure on the market, especially downtown, where vacancy rates have climbed.\u201d<\/p>\n<p>The benefits could ripple beyond housing, he adds. \u201cIncreasing residential density in the city\u2019s core could bring new life to business districts and support local retail and restaurants. These conversions don\u2019t just add homes\u2014they help revive neighborhoods.\u201d<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.brickellsold.com\/blog\/boston-bets-on-office-space-to-ease-housing-crunch-and-more-than-a-dozen-projects-are-underway\/#From_labs_to_living_rooms\" >From labs to living rooms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.brickellsold.com\/blog\/boston-bets-on-office-space-to-ease-housing-crunch-and-more-than-a-dozen-projects-are-underway\/#Balancing_opportunity_and_challenge\" >Balancing opportunity and challenge<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-from-labs-to-living-rooms\"><span class=\"ez-toc-section\" id=\"From_labs_to_living_rooms\"><\/span>From labs to living rooms<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The city has granted permits for several office-to-housing conversions\u2014this time at 615 Albany St. in the South End.<\/p>\n<p>Developers are transforming a former Naval Blood Research Laboratory into 24 apartments as part of the broader effort to turn underused commercial space into housing, according to Boston.com.<\/p>\n<p>The five-story, 19,200-square-foot office building will become a six-story, 20,000-square-foot residential property with 12 studios, one 1-bedroom, six 2-bedrooms, and five 3-bedrooms. Twenty percent of the units will be income-restricted.<\/p>\n<p>The City of Boston Planning Department approved the project in September 2024, and according to Boston.com, developer <strong>Gregory McCarthy<\/strong> purchased the property for $3.4 million in July 2023. <\/p>\n<p>It\u2019s the first project in the program to add an additional floor while staying consistent with the historical character of the South End.<\/p>\n<p>\u201cThis program provides solutions to multiple issues that are critical both now and for the future of Boston,\u201d McCarthy said in a city release.<\/p>\n<p>McCarthy, who also leads conversion projects at 129 Portland St. in the Bulfinch Triangle and 263 Summer St. in Fort Point, is among a growing group of developers reimagining Boston\u2019s post-pandemic office landscape.<\/p>\n<p>Boston\u2019s downtown office vacancy rate hovers around 20% and is expected to rise toward 30%, according to Boston.com, while residential vacancies remain close to 4%. City leaders see the conversion strategy as a way to turn those empty floors into homes.<\/p>\n<p>Mayor <strong>Michelle Wu <\/strong>has called the initiative central to Boston\u2019s downtown revitalization plan.<\/p>\n<p>\u201cBoston is building the foundation for a stronger, more vibrant downtown through our dedication to housing, public safety, and economic growth,\u201d Wu said in a city statement. \u201cWe\u2019re transforming underutilized office space into homes for over a thousand new residents.\u201d<\/p>\n<p>The city aims to create 1,000 new housing units and convert 1 million square feet of office space by 2026, and developers can apply for the program through December.<\/p>\n<p>These are some of the projects currently under construction:<\/p>\n<ul class=\"wp-block-list\">\n<li>263 Summer St. in Fort Point, which will create 77 homes in a historical warehouse<\/li>\n<li>129 Portland St. in the Bulfinch Triangle, with 25 homes<\/li>\n<li>615 Albany St. in the South End, with 24 homes<\/li>\n<\/ul>\n<p>The first completed conversion, at 281 Franklin St. in the Financial District, opened in September with 15 new apartments.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-balancing-opportunity-and-challenge\"><span class=\"ez-toc-section\" id=\"Balancing_opportunity_and_challenge\"><\/span>Balancing opportunity and challenge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Sarkis says the approach could reshape Boston\u2019s downtown, but it will require patience and planning.<\/p>\n<p>\u201cMany office buildings weren\u2019t designed for residential use, so converting them can be technically complex and costly,\u201d he says.<\/p>\n<p>\u201cDevelopers also face zoning restrictions, permitting delays, and high construction costs that can limit feasibility. To make it work, the city will need to stay flexible and keep supporting these projects.\u201d<\/p>\n<p>He also sees the potential for broader balance across the market.<\/p>\n<p>\u201cDowntown, the Financial District, and parts of the West End could benefit significantly, given the number of older office buildings that no longer fit modern workplace needs,\u201d Sarkis says. \u201cBut Boston also needs housing in outer neighborhoods like East Boston, Dorchester, and West Roxbury for families and first-time buyers who want more space and value. The key is balance.\u201d<\/p>\n<p>As office workers continue to spend fewer days downtown, Boston\u2019s adaptive reuse program offers a chance to reimagine what the city\u2019s core can be. For Sarkis, the conversions are more than a development trend\u2014they\u2019re a signal that Boston is adapting to the realities of a changing economy.<\/p>\n<p>\u201cBoston has always found ways to evolve,\u201d he says. \u201cThese projects show that the city can honor its history while meeting the housing needs of the future.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Boston Bets on Office Space To Ease Housing Crunch\u2014and More Than a Dozen Projects Are Underway: Boston\u2019s real estate market is showing its trademark resilience\u2014<\/p>\n","protected":false},"author":1,"featured_media":1285,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_title":"Boston Bets on Office Space To Ease Housing Crunch\u2014and More Than a Dozen Projects Are Underway | Brickellsold","rank_math_description":"Boston\u2019s real estate market is showing its trademark resilience\u2014and now, a wave of new housing is set to rise from the city\u2019s empty office buildings. 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