That half-empty office building on your commute with a shiny “Coming Soon: Luxury Apartments” banner isn’t just another facelift—it’s part of a nationwide transformation. In 2025 alone, a record 70,700 office units are being converted to housing, reshaping urban markets and creating new opportunities for residential brokers.
Why is this happening? Remote work slashed office demand, leaving landlords with vacant floors and cities facing twin challenges: empty downtowns and housing shortages. In Nashville, we’re seeing mixed-use redevelopments like Nashville Yards and Peabody Union, not pure conversions, but the math is similar. Conversions run about 30 percent cheaper and move faster than ground-up construction.
I recently toured an office building with a client planning to convert it into residential condos. The property had killer views of the skyline and direct access to downtown amenities—proof that many underused towers already sit on prime real estate. These opportunities aren’t abstract; they’re happening right here in our market.
And just last month, I sat on a BizNow panel discussing Nashville’s wave of mixed-use and office conversion projects. The consensus among developers, lenders, and brokers was clear: conversions are no longer fringe experiments—they’re becoming a mainstream redevelopment strategy in urban cores.
The good news for residential brokers is that new inventory is coming fast. Conversions bring condos and apartments online sooner than traditional builds, adding much-needed supply for urban buyers and investors. Neighborhood revival is also exciting because former office corridors will become walkable, lively districts, boosting nearby property values and client interest. It will also call for healthier city budgets. Occupied buildings generate more tax revenue than vacant ones, funding amenities that make neighborhoods easier to sell.
In short, these projects “flip” parts of the city, turning once-silent blocks into marketable residential corridors.
Challenges to watch would include construction disruption, as you can expect 12–24 months of noise, detours, and parking headaches. Manage listings near active sites with transparency and timing. Oversupply risk is another challenge because when several conversions hit at once, rental rates and absorption can dip. Adjust investor expectations and pricing strategies accordingly.
Most conversions succeed in downtown cores, especially among pre-1945 buildings that adapt more easily to residential layouts. Nashville hasn’t reached critical mass yet—but the trajectory is unmistakable.
Smart brokers should track zoning and permitting changes. “By-right” conversion zones are your early inventory alerts. They should also build alliances with developers and commercial brokers and stake their claim early. Identify which districts are shifting and brand yourself as the go-to adaptive reuse specialist. Lastly, be sure to educate your clients. Urban buyers and investors want to know which towers are next.
The takeaway: Office conversions aren’t just solving downtown vacancies—they’re redefining where and how urban housing comes to market. Brokers who engage early—whether it’s touring buildings, joining panels, or partnering on pilot projects—won’t just watch the trend unfold; they’ll help shape it.
With a childhood passion for building and a knack for community transformation, Jana Truman brings a unique perspective to commercial real estate. Known for connecting the dots in complex deals and speaking ‘residential’, managing broker for SVN Accel Commercial Real Estate, Jana is the go-to expert who maximizes value and maintains strong relationships, benefiting clients and residential agents alike.
