Dallas is cementing its place among the top U.S. cities embracing adaptive reuse, logging the second-highest number of units delivered through office-to-apartment conversion in 2024 and placing fourth overall for conversions generally.
According to a recent analysis by RentCafe, Dallas transformed old office space into 584 units, just four units shy of Manhattan, New York, which delivered 588 of the roughly 5,900 office-to-apartment conversions that came online last year across the country.
Office conversions saw a pretty big spike nationally compared to 2023, with deliverables coming in up 34% year-over-year. While that figure might seem impressive, it’s actually a good deal smaller than the overall increase in completed adaptive reuse projects. In fact, 2024 is the new high watermark at 24,735 units, a roughly 50% increase over the 16,513 delivered the year before.
The Big D contributed a good chunk overall, with 698 units built from repurposed buildings. Some 291 of those came from phase one of Peridot Residences in Santander Tower. More than 100 more units are currently underway.
Only three other cities clocked more units than Dallas: Chicago at 880, Denver with 789, and Philadelphia delivered 761. Not to be outdone at home, Dallas built the most conversions in the Lone Star State, completing more than Austin and Houston combined. The two cities together delivered 595 apartments.
It seems like adaptive reuse is really catching on, with cities embracing the relatively cost-effective development model to simultaneously revitalize old buildings and deliver badly needed housing. Developers tend to save on construction costs and produce less waste since the bones and lots of original materials from the property are maintained…