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

“Office-to-Residential Conversion: A New Value Proposition for the German Market” is an article published by Gensler, a global architecture and design firm. It is authored by Lukasz Platkowski, Managing Director of Gensler Germany and a registered architect with more than 20 years of experience in architectural design and project delivery. The article focuses on how adaptive reuse of underused office stock can help address housing shortages while reducing carbon impacts by retaining existing building structures.

Germany’s population reached 84.3 million residents, and net migration increased by 1.5 million, followed by roughly 1.1 million annual growth, according to the Federal Statistical Office. The article links this demographic growth to intensified demand for housing, while new residential construction is described as slowing due to high borrowing costs, price inflation, limited building materials, and a labour shortage. Against this backdrop, the text cites a projected shortfall of around 17,000 housing units per year across Germany’s “Big 7” major cities over the next three years (cited sources include JLL Research 2023 and Destatis).

Rather than relying only on new builds, the article proposes converting outdated, vacant office buildings (notably Class B and C assets) into multifamily residential developments. The stated value proposition is twofold: expanding housing supply by bringing “stranded” office assets back into productive use, and improving urban liveability through renovated, amenity-rich housing options located in established city areas.

A key operational barrier for conversions is early-stage uncertainty about technical and financial viability. Gensler describes a building analysis tool used to rapidly evaluate existing office buildings for multifamily conversion potential. The criteria mentioned include site context, building form, floor plate, building envelope, and servicing. The tool is presented as reducing the time required to determine viability from weeks to minutes, helping developers decide whether to proceed with conversion concepts more quickly.

The article frames office-to-residential conversion as a pathway to lower carbon outcomes compared with demolition and rebuilding, because a large share of embodied carbon remains locked in a building’s structure and façade (the text notes approximately 40%). Gensler reports assessing more than 1,300 potential conversion candidates across 130+ cities globally; 32% were identified as feasible conversions. The article estimates that converting those feasible candidates could save about 3.3 billion kilograms of carbon emissions. 🇩🇪 German market signals and enabling conditions Within Germany’s major cities, Frankfurt is highlighted as an early mover, with 16% of its 2024–2025 residential pipeline attributed to office-to-residential conversions (again citing JLL Research 2023 and Destatis). The article argues there is substantial additional potential in other large markets such as Berlin and Munich, where underutilised office assets may exist. It also notes that conversions require supportive conditions, including amendments to local building codes and change-of-use regulations, as well as public–private partnerships and government incentives to scale delivery.