A teetering office tower in midtown Manhattan this week brought renewed attention to the challenges of converting underused commercial spaces into much-needed housing. Sagging upper floors and bent steel beams at the former Pfizer building on East 42nd Street threatened dozens of luxury apartments being created within the structure, highlighting the difficulties inherent in these ambitious projects.
The conversion of office buildings into residential units has been presented as a common-sense solution to the nation's dual crises of a glut of empty office space and a severe housing shortage. Since the widespread adoption of remote work, tens of thousands of such conversions have been initiated across the United States. The New York project, a 1,600-unit endeavor planned for the former Pfizer headquarters, was slated to be the largest of its kind in the city's history.
The precise cause of the near-collapse remains undetermined. Speculation includes the developer's use of non-union labor, past safety violations at the site, or an engineering failure related to the original 1960s columns being unable to support the weight of added floors. Neither the building's developer nor the architectural firm responded to requests for comment.
Despite this incident, experts emphasize that such conversions are not inherently flawed but serve as a reminder of the complexities involved. Over the past few years, cities have made strides in facilitating these conversions through incentives and deregulation, while architects have developed innovative design strategies. Consequently, the number of apartments being created from empty office buildings nationwide has surged, with over 90,000 units in progress, up from just over 23,000 in 2022.
If this momentum continues, these conversions could significantly alleviate the housing shortage, which experts agree requires millions of new homes to stabilize rent and mortgage costs. Additionally, these new apartments are often situated in desirable, well-connected urban neighborhoods. Converting existing office spaces is also generally faster, cheaper, and less carbon-intensive than new construction.
However, retrofitting older buildings presents unique challenges. Unlike new construction where housing code requirements like operable windows and adequate plumbing are incorporated from the outset, existing office structures often require extensive gutting to meet residential standards. Tracy Hadden Loh, a fellow at Brookings Metro, likens the process to tailoring fabric to fit a body, emphasizing the need for intricate adjustments rather than simple modifications.
Some building types are more amenable to conversion than others. Historically, buildings with narrow floor plans, high ceilings, and wide windows, such as old factories and warehouses, have been easier to adapt. In contrast, post-World War II office towers, characterized by deep floor plans and central air systems, pose greater challenges. Developers have had to employ creative solutions, such as carving out atriums for natural light, as seen in some Manhattan conversions.
Anita Kramer, senior vice president at the Urban Land Institute, notes that developers often uncover unforeseen challenges and materials once they begin dismantling the original structures. Adding new floors atop existing buildings, as in the Pfizer project, is a common strategy, but integrating new construction with older structures, particularly reinforcing original columns, is a delicate engineering feat. A failure to properly reinforce these elements, as potentially occurred in this case, can have severe consequences.
Loh stressed that while robust checks and balances are crucial for health and safety, the incident should not halt the progress of office-to-residential conversions. "We should do that," she stated. "We just need to make sure we have enough inspectors."