Birmingham ranked #7 nationwide for adaptive reuse of office buildings by RentCafe

According to a recent study by RentCafe concerning the adaptive reuse of outdated buildings, Birmingham ranked #7 on a list of “Top Cities With Most Converted Apartments From Offices in 2023.”

We took a closer look at the study to learn more + rounded up several local adaptive reuse projects that fit the criteria.

Birmingham ranked #7 in “Top Cities With Most Converted Apartments From Offices in 2023”

Adaptive reuse projects of outdated buildings are on the rise nationwide, with 17.6% more apartments converted in 2023 than in 2022. In fact, RentCafe found that 151,000 new apartments are currently being constructed from outdated buildings across the country.

But why?

One explanation for the surge is the heightened demand for housing in the post-pandemic real estate market. High interest rates have led many current homeowners to stay put rather than lose their low pandemic-era interest rates, leading to a heightened demand for new home construction. Meanwhile, many office spaces are underutilized due to the popularity of the work-from-home movement.

These factors make a “perfect storm” for the adaptive reuse of office buildings—and Birmingham is near the forefront of this trend.

According to RentCafe, the top cities with the most converted apartments from office buildings are:

1. Peachtree Corners, Georgia with 295 units
2. Milwaukee, Wisconsin with 216 units
3. Indianapolis, Indiana with 216 units
4. Alexandria, Virginia with 212 units
5. Cleveland, Ohio with 202 units
6. Rochester, New York with 189 units
7. Birmingham, Alabama with 177 units
8. Chicago, Illinois with 176 units
9. Lansing, Michigan with 172 units
10. Richmond, Virginia with 168 units

Examples of adaptive reuse in Birmingham

Over the past few years, several prominent office buildings in The Magic City have been renovated for apartment use. Some examples are:

• The 600 — Formerly the AT&T City Center, this 30-story office tower was recently converted to apartment use by Varden Capital and now offers one-, two- and three-bedroom apartment units.
• The Frank — When this 10-story office building was built in 1903, it was considered one of Birmingham’s first skyscrapers. Recently, Orchestra Partners renovated the space for apartment and retail use. A new, five-star Japanese restaurant dubbed Johin’na will be opening soon at The Frank.
• Market Lofts on Third — Once office space for the American Red Cross, this building was vacant for more than 20 years. Recently, the building was renovated to offer affordable apartment units.

Excited to see Birmingham lead the way in the adaptive reuse of office space? Tag us @bhamnow to let us know your thoughts!