N
ew York City's housing shortage may find relief in the city's underutilized office buildings. A report by Comptroller Brad Lander estimates that up to 17,400 apartments could be created through office-to-residential conversions, transforming around 15.2 million square feet of space into housing.

    These projects would primarily focus on Manhattan below 59th Street and include major redevelopments such as the former JPMorgan Chase headquarters at 25 Water St., Pfizer's Midtown East campus, and the New York Stock Exchange building. Other notable conversions include the Goldman Sachs offices at 55 Broad Street and the 38-story 5 Times Square building.

    Developers are actively pursuing these conversions, with plans to rezone a Downtown Brooklyn site for a 72-story tower and convert the 5 Times Square building into 1,250 apartments. The city's new tax exemption law, which offers developers hefty breaks in exchange for affordable housing, has contributed to this trend.

    However, Lander's office warns that the program may be too generous, potentially costing the city $5.1 billion in lost revenue over 37 years. They argue that lawmakers failed to fine-tune the program's details, and some of the most lucrative incentives may go to areas that least require them. Despite these concerns, the report highlights the benefits of office-to-residential conversions, including helping the city absorb a post-pandemic surplus of office space and seeding new mixed-use neighborhoods.