Skyline Properties Helps Lead NYC’s Office-to-Residential Boom Amid 45% Drop in Office Property Values
- Industry News
- 3 days ago
- 2 min read
By Robert Khodadadian Founder, Skyline Properties
New York City’s commercial real estate market is evolving faster than ever. A recent report from Comptroller Brad Lander confirms what many of us in the field already know: office-to-residential conversions are reshaping the city’s future.
The first wave of these conversions—driven by changing demand, remote work, and bold new tax incentives—could deliver over 17,000 new apartments, repurposing more than 15 million square feet of office space. At Skyline Properties , we’re proud to be right in the middle of this transformation.
We recently brokered two key office-to-residential transactions that speak directly to this trend:
🔹 101 Greenwich Street – A landmark 26-story Financial District office tower now being converted into residential use. (https://www.skylineprp.com/101greenwich) BGO Quantum Pacific Commercial Observer
🔹 6 East 43rd Street – Just off Fifth Avenue in Midtown, this office asset is being transformed into a full-service hotel with extended stay capabilities, meeting growing demand for hybrid residential-hospitality offerings. (https://www.skylineprp.com/6e43) Vanbarton Group LLC The Real Deal
These aren’t just isolated deals—they represent a citywide trend of repurposing underused office space into productive, income-generating assets.
📉 A 45% Market Reset – and a New Window for Opportunity
According to the Comptroller’s report, the average price per square foot for converted office properties has dropped from $500 pre-2020 to just $276 today—a staggering 45% decrease. In some cases, values have fallen even more sharply:
📉 222 Broadway: -71%
📉 100 Wall Street: -57%
📉 101 Greenwich Street (our deal): -29%
While some may see this as a sign of distress, we see opportunity. These pricing resets are opening the door for well-capitalized investors and creative developers to unlock long-term value.
💡 Policy Is Now On Our Side
This momentum is being fueled by smart legislation. The 2024 launch of the 467-m tax incentive—which offers up to 90% property tax abatements for conversions with 25% affordable housing—has been a game changer. Removing the 12 FAR cap was equally important, finally allowing developers to build residential buildings at scale.
Yes, the Comptroller estimates this program could cost the city up to $5.1 billion in tax revenue over 37 years—but that cost comes with a clear return: new housing, job creation, and neighborhood revitalization.
🚀 What This Means for Investors and Owners
At Skyline, we don’t just chase listings—we guide our clients through off-market, strategic, and policy-aligned opportunities. Transactions like 101 Greenwich and 6 East 43rd are about more than moving properties—they’re about repositioning New York’s future.
If you own an office building that’s lost value, there may be a path forward through residential repositioning. If you're an investor seeking upside in a transitional market, these conversions offer strong fundamentals, long-term rent potential, and now—finally—the legislative support to make the numbers work.
Let’s Shape the Future, Together
This is a once-in-a-generation moment for New York real estate. At Skyline Properties, we’re proud to be leading the way.
📩 Want to talk strategy or learn more about off-market opportunities? Let’s connect. 🔗 www.skylineprp.com 📧 rk@skylineprp.com
Great Article!