What will we do with all these old office buildings?

Office vacancy rates are declining for the first time since 2020. Slowly but steadily, more companies are leasing space rather than giving it up, particularly in the technology and financial services sectors.

The key word here is “new.” When organizations expand their real estate footprint, they tend to favor facilities that are amenity-rich, energy-efficient, and tech-enabled. The challenge is that much of today’s office inventory doesn’t meet those expectations: the median age of office buildings in the U.S. is roughly 40 years, with about a quarter more than 60 years old. That raises the question: what happens to the many older office buildings that don’t make the cut?

For years, developers and CRE leaders have pointed to adaptive reuse—recycling buildings beyond their original purpose—as a way to breathe new life into aging assets and avoid demolition. But for office buildings in particular, adaptive reuse isn’t always viable.

Here’s why converting offices is especially challenging, where the benefits can outweigh those challenges, and how smaller-scale upgrades can extend a building’s lifespan.

The challenges of adaptive reuse for office buildings

Cost and labor time are the biggest barriers for adaptive reuse projects. According to NAIOP, converting an existing office building can cost roughly 25% more and take about 25% longer than ground-up new construction. 

To convert real estate, developers need to analyze everything from window systems to ventilation and structural capacity, factors that can quickly derail timelines and budgets. Yet it’s difficult to do a full analysis before the project begins. As one developer noted in the National Multifamily Housing Council’s feasibility report on adaptive reuse, “You don’t really know what you’re getting into until you take off the facade, walls, and bring it down to the concrete.”

The same NMHC report notes that adaptive reuse often comes down to how efficiently the land is being used and what today’s zoning allows. In low-density suburban areas, office buildings typically sit on large sites with surface parking, making it more attractive for developers to tear them down and build something denser from scratch. In contrast, office buildings in dense, built-out urban areas are often already at or near their maximum allowable size, which can make reuse more practical. Zoning changes add another layer of complexity: in some urbanizing districts, updated zoning allows for significantly higher density, making new construction more appealing than converting an existing building, even when reuse is technically possible.

The benefits of adaptive reuse for cities, owners, and sustainability

Despite the hurdles, adaptive reuse can deliver meaningful benefits.

From an ESG standpoint, reuse often beats demolition. Preserving existing structures avoids the carbon-intensive process of tearing buildings down and starting from scratch. Research cited by the National Bureau of Economic Research suggests that, on average, converted buildings can have significantly lower embodied carbon than new construction. That advantage, however, depends on project scope and material choices, making it critical to account for the upfront embodied carbon introduced through renovation work, not just long-term operational savings.

To make these projects more feasible, some cities and states offer tax abatements or zoning flexibility for adaptive reuse projects, and historic tax credits (HTCs) can help offset costs for buildings that meet age and preservation requirements. In Washington, D.C., for example, the “Office-to-Anything” Program offers a 15-year tax freeze for projects that turn offices into commercial and entertainment spaces.

Adaptive reuse can also reinvigorate cities. Repurposed buildings can attract new businesses, residents, and services, infusing economic growth in areas that might otherwise stagnate. Preserving older buildings also means preserving a city’s character: they form distinct skylines and uphold history, reinforcing culture and a sense of place.

Adaptive reuse examples: Offices, housing, life sciences, and healthcare

Office-to-residential conversions have received significant attention, particularly as housing shortages intensify in cities like New York. These projects can help address residential demand while reducing office oversupply.

Yet not every building is a viable candidate for multifamily housing. Buildings with deep floorplates and limited natural light often struggle to meet residential standards. In these cases, thinking beyond housing opens up new possibilities.

Life sciences, in particular, have emerged as a notable reuse pathway. In 2021, approximately 10 million square feet of new U.S. lab space came from converted office buildings, according to CBRE—though the firm has since noted that this surge has begun to normalize closer to pre-pandemic levels. These conversions can generate rental income through subleasing while meeting demand for research and lab facilities, though they require modifications like reinforced floors, higher ceilings, and upgraded electrical and plumbing systems.

Healthcare facilities present another opportunity. One example is the Summit Health facility in Long Island, New York, which transformed a former three-story office building into a healthcare environment.

Former office buildings have been converted into medical spaces that include exam rooms, waiting areas, upgraded HVAC systems, and improved accessibility—often aligning well with healthcare systems’ broader move toward smaller, distributed care environments rather than centralized campuses. 

Mixed-use developments are another approach. Combining offices with retail, dining, fitness, and transit access has become a common strategy to make properties more resilient and more appealing. Having daily essentials and social spaces on-site helps turn offices into destinations for employees.

When adaptive reuse isn’t the answer: Retrofits and reinvention

In many cases, the right solution isn’t full adaptive reuse, but retrofits.

Organizations can get more from their existing offices by gathering accurate utilization data, being intentional about employee coordination, and by shuffling stack plans to make better use of space. 

Some go further, using retrofits to improve energy efficiency, reduce operational costs, and lower embodied carbon without changing a building’s core use.

One example is United Airlines’ headquarters renovation, guided by circular design principles that prioritize reuse over waste. Shared at IFMA World Workplace 2025, the team explained how the project diverted 500 tons of material from landfills and resulted in a space that was significantly less carbon intensive than before.

Research suggests retrofitting buildings can extend their lifespan by decades while reducing both operational and embodied carbon emissions. One study examining more than one million buildings in Chicago found that retrofits could extend building life by roughly 20 to 30 years. Envelope enhancements, such as upgrading roofs, insulation, and building exteriors, can further improve energy performance.

Meaningful progress doesn’t always require sweeping change. Regular HVAC maintenance, sealing openings like window gaps, and making incremental efficiency upgrades can all move the needle.

Giving old office buildings new purpose

So, what will we do with all these old office buildings?

The answer isn’t singular. Some buildings will be candidates for adaptive reuse, where location, structure, and incentives align. Others will benefit more from retrofits that extend their useful life without a full transformation. And some assets, particularly those constrained by design, land use, or zoning, may no longer make sense to preserve at all.

For CRE leaders, the opportunity is in making deliberate, research-backed decisions about each asset’s future, and thinking creatively about what’s possible. 

Want to learn how to identify office spaces for repurposing, stay ahead of asset maintenance, and see utilization and occupancy in real time? Schedule a call with a workplace expert.