Latest news with #officeconversion
Yahoo
19-07-2025
- Business
- Yahoo
Milwaukee's largest office to housing conversion to get city cash--in return for lower rents
Milwaukee's largest conversion of an office building to housing would get city financing help − in return for setting aside some apartments at lower rents, under a plan that's won an initial city approval. The underused 100 East office tower's redevelopment would create 373 apartments by early 2028. That includes 75 "workforce housing" apartments with rents affordable to people earning no higher than the Milwaukee area's median income. Those monthly rents would initially be just over $1,900 for a studio and nearly $2,100 for a one-bedroom unit. Mayor Cavalier Johnson's Department of City Development is proposing tax incremental financing of $14.4 million for the $165 million project. That plan, endorsed by the Redevelopment Authority board on July 17, would use property tax revenue generated by the apartments to pay for part of the construction costs. The proposal is to undergo Common Council review in September, and renovations could begin in October. 100 East's conversion is being led by Klein Development Inc. and investor/developer John Vassallo. Their investment group bought the 35-story building, 100 E. Wisconsin Ave., in 2023 for $28.75 million. The financing plan's supporters include Alderman Robert Bauman, whose district includes downtown. 100 East would be the first workforce housing development to receive such financing under the city's new policy, Development Commissioner Lafayette Crump told authority board members. The Department of City Development defines workforce housing as apartments for people earning up to to 100% of the Milwaukee area median income. That amounts to $77,500 for an individual, or $110,700 for a family of four, according to updated federal guidelines. Workforce housing typically targets people who earn too much to qualify for tax credit-financed apartments with below-market rents, but still have trouble finding affordable market-rate units. Developers say inflated construction costs and higher loan interest rates have made it difficult to build such apartments without city help. Meanwhile, a new study from Moody's Analytics Inc. says the nationwide housing shortage is worse among rentals than home to purchase. That study recommends a focus on improving the housing supply "in modest- and middle-income communities." "With subsidies already providing some support for housing in low-income communities and the market in most places adequately serving upper-income communities, those in between are falling through the cracks," the study said. The 100 East development also would convert a nearly-vacant office building, with a $27 million assessed value, into one of downtown's largest apartment communities with an estimated $120 million value, Crump said. The city financing plan calls for annual payments to the developers from the project's property tax revenue. Those payments would stop after 16 years, Crump said, with the tax revenue then flowing to the city, Milwaukee Public Schools and other local governments. The financing package includes federal and state historic preservation tax credits, and a commercial loan with a guarantee from the U.S. Department of Housing and Urban Development − a program also used for The Couture high-rise. Tom Daykin can be emailed at tdaykin@ and followed on Instagram, Bluesky, X and article originally appeared on Milwaukee Journal Sentinel: 100 East conversion to housing to get city financing--for lower rents
Yahoo
07-07-2025
- Business
- Yahoo
Listed city centre offices could be converted into HMOs
PLANS to turn listed city centre office space into HMOs where people would live in bedrooms as small as nine square metres have been revealed. Two separate planning applications have been submitted for neighbouring buildings – 4 Duke Street and 1 Manor Row. The applications, by Cube Lettings, are to convert ground-floor office space in the former wool warehouses into HMOs. The ground-floor spaces were officers for Whitaker Firth before the solicitors relocated to the Titan Business Centre. The buildings were listed by Historic England in 1982, with the heritage body saying they were "an important and architecturally impressive group of late Victorian wool warehouses and offices". The offices are in a key location opposite Bradford Forster Square rail station and near the new £30m Darley Street Market. The Duke Street space would become a five-bedroom HMO, while the Manor Row space would be a seven-bedroom HMO. The Duke Street office space that could become a HMO (Image: T&A) One bedroom on the lower ground floor of the Manor Row plans would measure just nine square metres and would be next to the living space and kitchen shared by the other residents of the HMO. The application says: 'The proposal will bring back in use an empty key location property.' A decision on the applications, and linked Listed Building Consent applications, is expected in the coming weeks.
CNA
28-05-2025
- Business
- CNA
German landlord Aroundtown looks to convert offices into data centres
Aroundtown, one of the largest German-listed landlords, is planning to convert office spaces into data centres as demand for them grows in Europe, the group said on Wednesday after announcing it had tripled its first-quarter profit. Aroundtown has been facing higher vacancy rates in its office spaces, the biggest segment of its portfolio, since the COVID-19 pandemic led to a shift to remote work. It has already been converting some of its less sought-after office rentals into serviced apartments, most of which are expected to enter operation in 2026. Timothy Wright, Aroundtown's Head of Investor Relations, said the Luxembourg-based company was in the early stages of obtaining regulatory approvals for data centre conversions and it hoped to team up with more specialised companies. Potential tenants could be companies active in businesses ranging from cloud computing to autonomous driving, he said. "In five years time, let's hope we have some data centres in our portfolio," Wright said in an interview. "It's a different asset class for us ... We need to build up the IT know-how for the setup." The main challenges for data centre conversions in Germany include municipal regulatory permit approvals and obtaining confirmation from power providers that required energy needs can be met, he said. "It takes a few years until we can get to, let's say, crystalising the gains," Wright said. So far Aroundtown has received one regulatory permit to convert an office space into a data centre in Frankfurt, though it has not yet received the go-ahead for its electricity usage. Upon obtaining the required approvals, Aroundtown could either sell the properties for quick cash or undertake the conversions itself, Wright said. Data centre tenants typically have their own specific requirements, he added, so Aroundtown would aim to ensure they are already leasing the properties before the construction to convert them begins. "You can build a data center and go to Amazon, and they're like, 'Yeah, actually, this is not really what we need,'" he said.
Times
25-05-2025
- Business
- Times
Why developers are snapping up billions of pounds worth of unwanted offices
Developers have bought almost £3.5 billion of offices across the UK over the past three years with the intention of turning them into anything but workspaces. These offices, which are usually older and require expensive renovations, have been converted into everything from hotels and flats to laboratories and student halls. Between 2022 and 2024, 5.9 million sq ft of office blocks — equivalent to about 12 of the Gherkin building in the City — were sold for £3.44 billion to developers wanting to convert them into alternative uses, data from CBRE, the property agent shows. Since the pandemic there has been a 'flight to quality', with businesses increasingly wanting to base themselves in the most modern, eco-friendly buildings close to major transport hubs. That has left a glut of 'secondary' office space sitting empty that landlords are struggling to let and so they are open to offers from developers intent on changing the use.
CBC
21-05-2025
- Business
- CBC
Kanata tech park office conversion passes at city committee
Social Sharing An office conversion project in Kanata North sailed through a city committee today, with the local councillor hoping it will help transform the area's tech park. The 11-storey building at 535 Legget Dr. is one of three identical glass office towers surrounding a parking lot. Owner Wesley Clover International, chaired by billionaire Terry Matthews, wants to convert it into a mixed-use development with 115 housing units. Council's planning and housing committee voted unanimously on Wednesday to approve the required zoning changes. Kanata North Coun. Cathy Curry called it an exciting project that will change the dynamic of the community. "Right now, it has 570 companies where people work — just the work hours — and then they leave," she said. "Well now, with people living there, it will bring about more restaurants, more nightlife, more activities that people can participate in, which will bring a lot of life to the park and make it more attractive." She said the project isn't a one-off, but part of a trend toward more residential development in the technology park. Main and Main is planning an expansive housing development in Kanata North that could add 2,100 housing units. The city's top planning document aims to transform the Kanata North Economic District from a 1970s-era business park built around the automobile to a vibrant, pedestrian-friendly, mixed-use community focused on innovation. The conversion plan for 535 Legget Dr. calls for replacing the existing window walls with a new facade including Juliette balconies. The developer is also planning to add green space, and to connect the building to the neighbouring Brookstreet Hotel to allow residents to access restaurants, a spa and The Marshes Golf Club. While the upper floors will be residential, the plan would retain about 4,300 square feet of office space on the ground floor. The developer also asked the committee to relax minimum parking rules. It plans to provide 108 parking spaces for the 115 units, including visitor spaces. The committee agreed, and also voted to ban auto-focused uses such as drive-thrus from the site. The committee's decision must still go to a full meeting of council for final approval. But Curry said work has already begun, and CBC witnessed crews at work on Wednesday. Large panels of windows have already been removed. "The preliminary construction starts because they can do that without getting this final approval," said Curry. "I'm in the park a lot and I talk to the people who are running this project and they are full steam ahead." Kitchissippi Coun. Jeff Leiper, who chairs the planning and housing committee, said city council is keen to see more office conversions. But based on his discussions with the industry, he admits it might not be a quick fix to the city's housing shortage. "There are economic challenges to doing conversions, and some of the advantages that are purported to be part of those may not materialize," he said. "That said, certainly if developers are interested in converting, as a city council we're here to support them."
