Office-to-Residential Conversion: A New Value Proposition for the German Market

The article "Office-to-Residential Conversion: A New Value Proposition for the German Market" is published by Gensler, a global design and architecture firm known for its innovative solutions and emphasis on sustainable design. The author, Lukasz Platkowski, serves as the Managing Director of Gensler Germany, bringing over 20 years of experience in architectural design and project management. The piece discusses the pressing housing crisis in Germany and presents a transformative approach to address this issue through the conversion of unused office buildings into residential spaces.

Germany is currently experiencing rapid population growth, reaching 84.3 million residents, with a net migration increase of 1.5 million. This demographic shift presents both challenges and opportunities in addressing housing shortages. The construction of new housing developments is declining due to economic barriers such as high borrowing costs, rising prices, and a lack of available building materials, compounded by a labor shortage. It is projected that the country will face a shortfall of approximately 17,000 housing units annually across its seven major cities in the coming years.

To tackle the housing crisis, Gensler proposes an innovative approach: converting outdated and vacant office buildings into residential units. The firm has developed a building analysis tool that assesses existing office structures to determine their suitability for multifamily conversions. This tool evaluates various factors, including site context, building form, and servicing capabilities, significantly reducing the time needed to assess project viability from weeks to mere minutes.

The potential environmental benefits of these conversions are substantial. Gensler’s research indicates that converting just 32% of assessed buildings could save approximately 3.3 billion kilograms of carbon emissions, addressing both housing needs and sustainability goals. Many outdated office spaces possess features that can be repurposed for residential use, such as ceiling heights that could accommodate luxurious apartment designs.

Frankfurt currently leads the way in these conversions, with 16% of its residential pipeline for 2024–2025 designated for office-to-residential transitions. However, there remains significant potential for expanding this strategy to other major cities like Berlin and Munich, where many underutilized office buildings exist.

While office-to-residential conversions are not the sole solution to the housing crisis, they represent a viable strategy. Gensler advocates for the amendment of local building codes and change-of-use regulations to facilitate this initiative. Public-private partnerships and government incentives will play a crucial role in effectively implementing this model across German cities, ultimately providing increased living options for the growing population.

As the housing demand in Germany escalates, the office-to-residential conversion strategy presents a transformative solution that aligns with sustainability objectives. By leveraging existing structures, the initiative not only addresses immediate housing shortages but also contributes to the decarbonization of urban environments, marking a significant step toward more sustainable living solutions in Europe.