Adaptive recycling projects are proliferating across the country, and nowhere has more in the works than Los Angeles.
Work is scheduled to begin on 4,322 conversions of homes in LA next year, according to a RentCafe survey first reported by Urbanize.
That’s more than double the conversions expected to begin in Cleveland, St. Louis. Louis and Brooklyn – the city centers with the second highest totals nationwide.
Perhaps LA’s most prominent is Simon Baron Development’s conversion of Downtown’s Hotel Cecil into 301 apartments and a new hotel.
Nationwide, 306 projects with 52,700 units are underway or planned. About a quarter of these units are in conversions from office to residential.
Another 17 percent are conversions from factories, and 15 percent are recycled from hotels. Hotel conversions were the most popular conversions before 2013, but office conversions are now the most prevalent and recently got a boost from the phenomenon from home.
“Office buildings have become the most frequent type of building to be converted since 2010, although they are more expensive to renovate than hotels,” Emil Malizia, a professor at UNC Chapel Hill’s Department of City and Regional Planning, told RentCafe. “This result can be attributed to their abundant supply in urban areas where demand has been high.”
About 20,100 units in total are to be converted this year nationwide, almost double the totals for both 2020 and 2019. The 15,480 conversions completed in 2017 were the highest in a decade.
About 1,000 of this year’s units are in LA, the fifth most in any U.S. city. About nine out of 10 units are in conversion from office to residential.
Developers are also converting LA’s office buildings to other purposes, especially hotels. Relevant Group has a number of projects underway in Hollywood. Office buildings near LAX also receive hotel treatment.
Malizia said adaptive recycling projects could cost 30 percent to 40 percent less per year. Unit than new construction.
[Urbanize] – Dennis Lynch