Since the COVID-19 pandemic, remote work has become an integral part of professional life. This shift means that many large office buildings are no longer necessary.
According to a study, the transformation of vacant office spaces, left unused due to the rise of home offices, could create 60,000 new apartments for around 100,000 people in Germany’s seven largest cities. This was revealed in an analysis released on Friday (September 20) by the Ifo Institute and the real estate advisor Colliers, which covered Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart, and Düsseldorf. “Vacant offices can help alleviate the housing shortage in urban areas,” stated Ifo researcher Simon Krause. “However, only a small portion of potential conversions is economically feasible.”
The study indicated that around 30 percent of the vacant office spaces can be converted into residential units from a technical and legal perspective. This equates to 2.3 million square meters based on the current office vacancy rate. If the declining demand for office space is taken into account, an additional 3.5 million square meters could be available for conversion. However, it is estimated that about 20 percent of the area would be lost during the transformation process. Assuming an average apartment size of 77 square meters and an average household size of 1.7 persons, approximately 60,000 apartments could be created for 102,000 people.
“Creative solutions required”: How residential conversion can succeed
“Due to the limited economic feasibility of conversions to residential apartments, creative repurposing concepts are needed,” said study co-author Andreas Trumpp from Colliers. “Partial conversions and neighborhood development will also be necessary to meet urban needs such as housing, commerce, or recreation.”
The remote work ratio in Germany has remained steady at around a quarter of the workforce for nearly two years, impacting over two-thirds of companies. The study predicts that the demand for office spaces will decline by about twelve percent by 2030. Specifically, large service providers, who occupy the most office space, are downsizing and relocating to modern, central locations. “One in four large service companies is reducing its office space, and 20 percent are relocating at least one office location,” said Krause. “The prevalence of remote work will further increase vacancy rates and the risk of office buildings going unused.” (reuters, lf)
