For a better understanding of why looking at office space through this lens is important at this time, as well as how this new CommercialEdge research tool can help revitalize cities across the U.S., we sat down for an interview with Peter Kolaczynski, director at CommercialEdge.
This market intelligence tool feels well-researched. How long was it in development by the CommercialEdge team?
Kolaczynski: “Indeed, a significant amount of time and effort went into this research. It took us around eight months to thoroughly analyze what is currently more than 81,000 buildings in the CFI data.”
The index weighs a variety of aspects when scoring the conversion feasibility of a property. Which of these aspects do you find holds the most weight, regardless of which market the property is in?
Kolaczynski: “It is challenging to not overanalyze and end up with a set of factors that may not easily apply to properties in all locations, but it is a challenge worth tackling. Among the aspects currently weighed toward the final score, I’d say that the year built, the building dimensions and the shape of the floor plate are probably the most important characteristics. The more functionally obsolete an office property becomes, it should be looked at as a conversion opportunity worth exploring. When weighing characteristics suitable for a conversion to residential use, the dimensions, shape and whether the property is mid-block can give you a good picture of potential access to natural light, which is one of the most important features of a home.”
What would you say is the most immediate value that this market intelligence tool offers developers?
Kolaczynski: “While a conversion from office use to multifamily can’t ever be considered easy in the strictest sense, there is a higher number of buildings with potential worth than one would think. Given the continued destruction value in the office segment — along with what we expect is an increase in incentives and subsidies — the aim of our work on this, as a whole, is to demonstrate the extent of that possibility.”
Similarly, how would you say that this kind of research can bring value to neighborhoods and communities?
Kolaczynski: “Hopefully, it demonstrates valuable opportunity and gets more people talking about the potential it can unlock for communities to thrive and grow. Cities, states, and the federal government could look at programs to initiate or support development in this sense.”
Is there something more to it in development that we can look forward to in the near future?
Kolaczynski: “We are always tinkering on our products and are keen to respond to what the market is looking for. We strive to be a thought leader in this sector, and I would expect we will continue to work on similar projects when it comes to office usage.”
