Initiatives to Convert Boston Offices into Much-Needed Housing Push Through

In 2016, Rich Kershaw’s company purchased a building at 95 Berkeley St. with the intention of renovating and leasing office space. The upgrades included elevators, bathrooms, lobbies, and the facade to increase rental income. However, the pandemic disrupted these plans, leaving the building mostly vacant.

Shift to Residential Conversion

Due to the persistent vacancies in older commercial properties, the company decided to convert the building into nearly 100 housing units. This move aligns with city and state efforts to transform underutilized office spaces into residential areas, supported by substantial tax breaks and state funding.

Challenges and Solutions

Boston Mayor Michelle Wu acknowledged the difficulties and costs associated with converting office buildings into residential units. Despite these challenges, officials see conversions as a way to address both the surplus of vacant office spaces and the city's housing shortage.

Market Dynamics

High demand for top-tier office spaces contrasts with struggles in lower-tier markets. Office vacancies have increased significantly, presenting a case for residential conversions to mitigate vacancies and add housing. The state has allocated funds to support these projects, and cities across Massachusetts are identifying suitable buildings.

Architectural Considerations

Older commercial buildings, especially those built before World War II, are more adaptable to residential conversions due to their reliance on natural light and ventilation. Examples of successful conversions include repurposed mills in cities like Lowell and New Bedford, which have revitalized neighborhoods.

Broader Implications

Architect Tim Love highlighted that having more residents in downtown areas enhances vibrancy and economic activity. However, conversions alone cannot solve all post-pandemic real estate challenges. Financially troubled properties may not always be suitable for conversion, and broader market solutions are needed.

Subsidies and Regulatory Challenges

There is debate over whether subsidizing conversions equates to a bailout for property owners. Advocates argue that incentives are necessary to offset costs from environmental regulations and affordable housing mandates. Some suggest that cities might need to relax certain requirements to make conversions feasible.