E1: Adaptive Reuse
The newest change to Multifamily Housing construction over the past few years post Covid, has been the increasing demand for Adaptive Reuse projects in urban cities. As a Multifamily Housing manufacturer of closet doors, it is imperative that we stay in the know to these zoning changes to continue to be able to provide knowledge to the architects and developers involved because of the nature of our door. (Custom sizes, without the custom cost)
Leaving Chicago Build last week, the big takeaway was learning about this gaining momentum throughout the nation and the large impact that zoning has on these projects being able to be made possible. In Chicago particularly, the changes have incurred an influx of multifamily housing developments along the LaSalle Street Corridor.
The panel titled "Built to Last: Preservation & Adaptive Reuse in the Chicagoland" was on the Government Policy Stage at 11am on October 30th. The panel consisted of Krista Weir, Director of Historic Preservation at Hartshorne Plunkard, Rachel Will, Pincipal and Executive Director of Knowledge Sharing at Wiss, Janney, Elstner Associates, Albert Mena, Principal, Sector Manager, Buildings at TYLin, Nicolas Anderson, Principal/Technical Director at Latent Design, and Andrew Elders, Director of Historic Tax Credits at Ryan LLC. It was a very insightful conversation of learning in terms of a spotlight on all of the reform needed in order for adaptive reuse projects to be able to be developed.
Most recently, Magiglide closet doors have been installed in the following developments thanks to similar reform throughout the country:
25 Water, the largest adaptive reuse project to date in NYC.
1801 Beauregard, a 499 unit conversion near DC.
1701 Market, Philadelphia's much needed multifamily housing project capable through these changes.
The rest of the country has had many changes in terms of the eligibility of buildings opening up the adaptive reuse pathways for Multifamily Developers and Investors alike. Lets take a look at the 20 cities that have recently made changes to make this type of construction easier and possible with active links to the government websites that are keeping the laws up to date regarding this topic.
Tucson, Arizona. In December of 2024, the city's Mayor and Council approved amendments that took affect January 2025, aligning local code with Arizona state law (HB 2297) which madates that cities allow multifamily residential development or "adaptive reuse" of a portion of existing buildings. What is new? At least 10% of all existing buildings deemed "economically or functionally obsolete" may not be converted to multifamily by-right under certain conditions. (TuscanGov)
Los Angeles, California. The city released a draft of its "Citywide Adaptive Reuse Ordinance" in 2024 which will extend eligibility instead of just certain zones. Under this new ordinance, existing buildings 15 years or older can be eligible by-right for adaptive reuse. Buildings between 5-15 years may still be eligible via a conditional use process. Make note, historic resources safeguards still apply (HPOZ zones) which may influence conversions. (LACityGov)
Boston, Massachusetts. In September 2025, the city's planning department approved zoning updates for the downtown area that explicitly "streamline pathways for adaptive reuse of buildings." The updated zoning allows residential uses as-of-right throughout the new zoning districts downtown. The update places large hotel, lab and office uses under more scrutiny and instead positions conversion of existing structures into housing as a priority. (CityofBostonPlanningDept)
New York City, NY. The state law RPTL 467-m. Large tax exemption incentive for office-rental conversions that include affordability; major push to unlock Midtown/Manhattan inventory. (NYCHousingPreservation&Dev)
San Francisco, CA. The Downtown Adaptive Reuse Program + proposed Downtown Revitalization Financing District, have created waivers and exemptions to planning codes, fee/transfer-tax relief and financing tools to make conversions viable. (SanFranPlanning)
San Jose, CA. The multifamily incentive programs named "Downtown High-Rise Incentive & Growth-Area MHIP" gives big fee/tax relief to jumpstart multifamiliy-useful for conversion projects in downtown/growth areas. (CityofSanJose)
Phoenix, AZ. City Adaptive reuse program and ZTA amendments implementing by-right conversion pathways. Giving priority for zoning and certifications to projects in this adaptive reuse category. (PhoenixGov)
Denver, CO. City Adaptive Reuse regulatory summary and program adjustments made in 2025. Targeted code/energy adjustments and pilot financing supports to reduce conversion obstacles. (DenverGov)
Seattle, WA. Office to residential program/land-use amendments. Code changes and a conversion program (Downtown Activation Plan) that waive some requirements and incentivize conversions. (SeattleGov)
Portland, OR. Temporary SDC (System development Charge) exemptions and permitting guidance. Fee relief and clearer permitting patheways for new housing through 2028. (PortlandGov)
Minneapolis, MN. Ordinance streamlining office-to-residential conversions, administrative reviews, parking/standard adjustments and faster approvals. (MinneapolisGov)
San Diego, CA. City information bulletins and programs clarifying the office to residential rules and permitting. Now downtown conversions allowed by-right in many zones and Affordable Housing pathways opened. (SanDiegoGov)
Sacramento, CA. Interim zoning guidance and code sections implementing California's extremely affordable adaptive reuse provisions. Streamlined ministerial approvals under state law. (SacramentoGov)
Chicago, IL. City incentives and recent approvals. Substantial TIF/subsidy packages and growing programmatic support to convert Loop offices to housing; multiple large projects advancing. (ChicagoGov)
Atlanta, GA. Downtown feasibility studies and high-profile conversion proposals. City/stakeholder studies identify office buildings ripe for conversion and enable local incentive design. (AtlantaGov)
Until the next door opens,
Tracy
