Vacant Offices → Vibrant Communities

mlerg1
Jul 22
2 min read

Commercial Real Estate at a Crossroads

Across U.S. markets, office buildings remain largely vacant, even as millions more homes are urgently needed. Adaptive reuse is emerging as both a solution to overbuilt commercial space and an acceleration path toward vibrant, livable communities. But without vision, even promising projects stall.

📊 Data That Demands Action

Office vacancy hit 19.8% in Q1 2024, a 30-year high.
Meanwhile, a housing shortage of 4.5 million units persists across the nation.

These figures highlight a stark disconnect: hoarded empty space on one hand, and households without homes on the other.

Adaptive Reuse Momentum

Office-to-residential conversions have taken off:

From 12,100 units in 2021 to over 70,700 projected in 2025 – an almost six-fold increase.
Yet only 3,700 units were delivered in 2024 – underscoring execution gaps.

Why It Matters: Longer timelines, financing slowdowns, and permitting holdups are tightening delivery. Adaptive reuse provides opportunity, but only if execution barriers are overcome.

🚀 Incentives That Enable Change

A perfect storm of federal and local incentives is opening doors:

$9B+ invested via Federal Historic Tax Credits
Over 70% of U.S. cities offering local reuse incentives
20-year tax abatements available in major markets

Bottom line: Public incentives are closing the gap between potential and delivery – making reuse not only possible, but profitable.

Where Projects Still Stall

Even with incentives and data momentum, one critical barrier remains: visual clarity. You might have a great site, zoning advantages, and incentives, but without a compelling visual narrative, stakeholders hesitate.

“If you want to secure funding, city approval, or anchor tenants - you need to tell a story that’s visual, fast, and emotionally compelling.” – Michael Lerg, CTO, PIX

🛠 Visual Tools That Drive Progress

With PIX’s visual ecosystem, CRE teams have converted vision into velocity:

Aerial Video Tours – +50% awareness, 68% faster deals
3D Virtual Tours – 31% speed in pre-leasing
Renderings & Video – storytelling clarity for entitlement
RealSite Platform – one hub for visual content, marketing, and sharing

Results from PIX-enabled projects:

60% faster site selection
40% shorter due diligence
25% higher funding success
Up to 95% units pre-leased before breaking ground

Real-Life Case Examples

Historic School → Affordable Housing: 3D Virtual Tours secured deposits for 9 of 24 units during the 1st month of interior demolition.
Office → Logistics Hub: Renderings convinced owner city and investors alike.