Glossary

Conversion Feasibility Study

Also known as: adaptive reuse feasibility study

A specialized pre-acquisition or pre-development due diligence analysis evaluating whether an office building can be physically, financially, and regulatorily converted to an alternative use such as residential or laboratory space.

A rigorous conversion feasibility study integrates architectural test-fit analysis (can efficient units or lab modules actually be laid out on the existing floor plate), structural engineering review (floor loading capacity, column spacing, and slab condition), building systems assessment (elevator capacity, riser locations, floor-to-floor height for new mechanical distribution), zoning and code analysis (as-of-right conversion rights, parking requirements, and any conversion-specific incentive programs), and a full capital cost estimate benchmarked against ground-up development cost for the same target use, since conversion is only worthwhile when it delivers a meaningful cost or timeline advantage over new construction. The most common outcome of a genuinely rigorous feasibility study on a randomly selected office building is a negative or marginal conclusion, which is the central reason why office-to-residential conversion, despite enormous public and political enthusiasm as a solution to both office vacancy and housing shortages, has converted only a small fraction of vacant office stock in most major markets to date.