RentCafé’s annual report tracks the pipeline of apartments converted from former office spaces, which has now reached an astounding 70,700 units in the pipeline — more than triple the 23,100 units converted in 2022.

Check out the hotspots of conversion and the key trends:

• The conversion pipeline has grown by 28% year-over-year in 2025, comprising 51,630 units carried over from the pipeline at the start of 2024 and 19,021 new conversions.  
• New York has the biggest office-to-apartment conversions pipeline (8,310 units), followed by last year’s #1, Washington, D.C. (6,533 units); Los Angeles in third place (4,388 units); Chicago (3,606 units); and Dallas (2,752 units).  
•  In 16 of the top 20 metros, more than half of all adaptive reuse projects involve office-to-apartment conversions. Four metros stand out with shares exceeding 70%: Phoenix (71%); Minneapolis (78%); Dallas (79%); and Omaha, NE (85% — marking the largest share nationwide). 
•  There’s an increasing focus on repurposing modern buildings: Newer office buildings constructed between the 1990s and 2010s now represent 1.27% of the completed conversions. However, their share is expected to grow significantly, with their share set to rise to 7%. 
•  Office conversions now represent 42% of all the 169,000 apartments emerging from future adaptive reuse projects — up from 38% in 2024. Nationwide, 14.8% of all office buildings are deemed suitable for conversion, according to CommercialEdge’s Conversion Feasibility Index.  
• Office-to-apartment conversions have more than tripled, growing from 23,100 units in 2022 to 70,700 units in the pipeline in 2025. 
• Modern buildings constructed between the 1990s and 2010s are becoming more common in conversion projects. While they accounted for just 1.27% of completed conversions, their share is projected to rise to 7%. 
• According to CommercialEdge’s Conversion Feasibility Index, 14.8% of all office buildings in the U.S. are suitable for conversion. 

Additionally, here are some of the most notable conversion projects across the country, each set to bring hundreds of much-needed apartments to their respective cities:  

1. In New York City, a standout project is the transformation of Pfizer’s former global headquarters at 219 E 42nd St., which is expected to create 536 rental units. 
2. A key conversion in Washington, D.C., is the Universal Buildings project at 1825-1875 Connecticut Ave. NW. The property — totaling more than 1 million square feet — will be transformed into The Geneva, a residential complex containing 525 new apartments with at least 69 affordable units. 
3. In Los Angeles, the 3rd biggest office conversion hub in the country, a significant project is the ARCO Tower redevelopment, which will transform the 33-story office building at 1055 Seventh St. into brand-new apartments. 
4. One major project in Chicago is 30 N LaSalle St., where 432,000 square feet of space will be revamped into 432 new apartments, including 130 affordable units. 
5. In Dallas, the Bryan Tower stands out as a key project to watch: Built in 1973 and purchased by Woods Capital in 2022, the 1.1-million-square-foot glass tower will be transformed into 425 new apartments. 

Read the annual report tracking office-to apartment conversions at RentCafé.

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This information is intended as a guide for architects, owners, building managers, contractors and others in the building industry who are interested in the proper care and maintenance of finished architectural aluminum.

Carl Troiano (Trojan Powder Coating), vice chair of the FGIA Architectural Aluminum Handling, Cleaning and Maintenance Task Group, explained:

This guideline will benefit all those involved in the entire process from manufacturing and fabrication, installation and future maintenance of a project.  It is the most current specification to help deal with the cleaning and maintenance guidelines to assist in the prevention of damage to the finished aluminum surfaces. FGIA and its members have been able to provide a concise specification to assist in maintaining the longevity of anodized surfaces, painted and powder coated aluminum surfaces including cleaning recommendations and care after installation.

AAMA 609 and 610-25, Cleaning and Maintenance Guide for Architecturally Finished Aluminum, as well as other documents available from FGIA, may be purchased from the online store at the discounted member rate of $25 or the non-member price of $70.

For more information about FGIA and its activities, visit FGIAonline.

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Cheryl Carron, COO, Work Dynamics Americas, and president, Healthcare Division, JLL, pointed out:

These findings reflect the ongoing transformation of the healthcare real estate landscape, driven by factors such as changing patient preferences, technological advancements and demographic shifts. Health systems are taking a more active role in shaping their real estate portfolios and, along with corporate medical groups, are at the forefront of change, implementing ambitious ambulatory care strategies to improve patient outcomes and optimize their revenue streams.

Health systems and corporate medical groups lead the outpatient shift

An aging population and increasing disease prevalence continues to drive the overall need for care. The site of care shift from inpatient to outpatient will continue as technology and patient preference is driving advances in medical care, making treatments less expensive, safer and less invasive.

Health systems are leaning into this and are expanding their real estate footprint and either acquiring or contracting with physician groups to add specialties. From 2022 to 2023, 16,000 additional physicians became employees of a hospital system, and health systems accounted for 46% of MOB leases that JLL tracked in 2024. Specialty providers comprised 31% of the MOB leases, with psychiatrists and behavioral health providers making up the largest group of these, accounting for 18% of this square footage.

Matt Coursen, executive managing director, market leader, Mid-Atlantic Healthcare Group, JLL, remarked:

We’re seeing a clear trend of hospitals and health systems focusing on high-value services such as orthopedic and cardiovascular care. These healthcare providers prioritize access, convenience and visibility for their outpatient locations, in some cases mirroring retail tactics to capture market share either via acquisition or de novo growth. Their site selection process is intricate, involving analysis of patient data, community demographics, care gaps, population growth, insurance coverage, referral networks and competitor proximity. Hence, why it is more important than ever to have a data-driven ambulatory network strategy that aligns with the real estate portfolio.

Healthcare tenants may seek alternative spaces due to limited medical office availability

Strong demand and limited construction have driven occupancy steadily upward, with absorption for medical outpatient buildings topping 19 million square feet for the top 100 markets in Q4 2024, an increase of 15% from full-year 2023, according to Revista. MOB occupancy increased to 92.8% in Q4 2024, up from 92.4% one year prior; however, medical outpatient building construction remains subdued due to elevated costs, developers’ need for higher returns and tenants’ desire to control expenses.

Health systems led construction starts in 2024, accounting for 53% of total square footage and a significant increase from just 43% in 2019. Healthcare providers, especially those offering low- to mid-acuity services, are increasingly exploring office and retail spaces near patients or hospitals due to limited MOB availability, despite conversion challenges for high-acuity services or resource-intensive services like imaging.

Dan Squiers, executive vice president and Healthcare lead, Project and Development Services, JLL, stated:

With medical outpatient building occupancy reaching new heights and construction starts lower than in previous years, healthcare tenants may increasingly consider office and retail spaces for their expansion needs. This trend is reshaping not just the healthcare real estate sector, but also impacting traditional commercial real estate markets and reflects the strategic importance of real estate in delivering cutting-edge healthcare services and optimizing patient outcomes.

Medical outpatient rents are rising, boosting property income

MOB rents continue to rise, albeit at a slower pace from 2023 to 2024. Top-tier properties have experienced faster growth, with rents in the 90th percentile of Revista’s Top 100 markets growing at a 2.3% CAGR from 2019 to 2024, compared to 1.8% for median rates. The low availability rate of 6.9% in Q4 2024 means advertised rates don’t tell the full story, as many tenants renew in place and some spaces are not publicly listed.

Healthcare REITs are benefiting from steady NOI growth, with new lease escalations averaging 3% in 2024 and average terms of 107 months; however, tenants face challenges as rate escalations outpace year-over-year rent growth in most markets. With slim operating margins and declining reimbursements, healthcare providers are keen on cost reductions across the system, which may limit dramatic rent increases in the future.

Kari Beets, senior manager, Healthcare Research, added:

While medical outpatient building rents are expected to continue their upward trajectory, we anticipate steady rather than steep growth. The healthcare sector’s financial constraints, including tight operating margins and reimbursement pressures, will likely moderate rent increases compared to premium office submarkets experiencing a flight to quality.

Sunbelt population growth and established healthcare brands fuel market expansion

While Sunbelt markets are seeing significant growth due to population shifts, the report details strong performance in markets like Boston and Northern New Jersey that benefit from the presence of established, growing health systems with strong brand recognition, which can support growth through fundraising and attract high-value specialties.

Markets with strong rents and occupancy are spread throughout the country, with four Sunbelt markets seeing rent growth over 3% – Miami, Orlando, Austin and Tampa. New York led all markets with new outpatient services move-ins in 2024 for both leased and owned space. Although Philadelphia led all markets in 2024 MOB net absorption, with Houston and Atlanta posting more than 400,000 square feet of net absorption each, the Norfolk/Hampton Roads, Virginia, area saw strong absorption compared to total inventory.

Medical properties attract investors and health systems with stable returns

Medical buildings continue to offer stability for investors, and health systems also see benefits to ownership. Medical outpatient transaction volume increased in 2024, bolstered by significant acquisitions in the sector.

The report also provides insights on the future perspective of the MOB market, including potential challenges and opportunities for developers, health systems, tenants and investors. Key considerations include the impact of changing healthcare delivery models, challenges posted by limited supply pipeline and the role of technology in shaping future healthcare real estate needs.

John Chun, senior managing director and Medical Properties group leader, Capital Markets, JLL.

The stability and growth potential of medical outpatient buildings continue to attract investors. With average lease escalations of 3% and terms for new leases averaging almost nine years, MOBs offer a compelling investment opportunity in today’s market.

Future perspective

Healthcare demand remains robust due to an aging population and increased outpatient needs; however, potential challenges may impact demand for medical outpatient spaces and shake up the healthcare sector.

Carron concluded:

Looking ahead, we anticipate continued evolution in the healthcare real estate sector. Factors such as the shift to home-based care, telehealth advancements, changing healthcare policies and demographics will all play a crucial role in shaping the design and demand for medical outpatient space. Stakeholders across the industry will need to remain agile and forward-thinking to capitalize on these emerging trends.

View the complete 2025 Medical Outpatient Building (MOB) Perspective at JLL.

JLL Healthcare provides a full range of real estate and facilities solutions for hospitals, physicians and other care providers as well as real estate investors that own and operate medical and seniors housing properties. The company helps its healthcare clients plan, find, finance, buy, lease, sell, construct, optimize, manage and maintain the most-advantageous facilities anywhere in the U.S. for all property types along the continuum of care, serving over 550 million square feet of healthcare property annually.

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The Q4 numbers indicate gradual improvement across the 13 largest U.S. life sciences markets and the potential for that momentum to carry through to this year. Leasing activity for lab space totaled 3.4 million sq. ft. in Q4, up 28% from a year earlier. The positive net absorption of 920,000 sq. ft. in Q4 — the difference between newly leased space and newly vacated space — is the third gain in the past five quarters.

The sector benefitted last year from record-high life sciences employment in the U.S., a number of new drugs receiving federal approval and a 19% year-over-year increase in venture capital funding for life sciences companies to $30.4 billion. Meanwhile, the primary factor boosting the national vacancy rate — a surge in lab construction that began during the pandemic — now is easing as construction completions deplete the construction pipeline. The 12.1 million sq. ft. of labs in progress at the end of Q4 is roughly two thirds less than at the peak in 2024.

Q4 market performance

On the market level, 10 of the 13 largest U.S. life sciences markets registered positive net absorption in Q4, led by the San Francisco Bay Area and San Diego.

Top life sciences markets: Select Q4 stats

The U.S. Life Sciences | Q4 2024 report Executive Summary is available at CBRE.

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Below are the Top 4 Education Real Estate Trends to Watch that JLL identified for 2025:

• Higher ed institutions will increasingly look to strategic solutions to navigate financial challenges and market pressures: 12 higher education P3s closed in 2023, up from 5 in 2022 and 5 in 2021. There are currently 19 higher education P3s in progress YTD in 2024, up from 12 in 2023.
• The holistic campus experience will be a key differentiator for attracting and retaining students and faculty and staff: It’s essential for schools to develop affordable and highly amenitized student and workforce housing, innovative learning spaces, modern athletic complexes and technologically advanced research laboratories to drive growth and attract both students and faculty/staff.
• Colleges and universities will shift from planning to action as they prioritize campus sustainability and resilience: 80% of students report considering sustainability as an important factor in their college decision.
• Data-driven decision making will improve operational efficiencies in higher education campus management: 69% of educational organizations surveyed believe that the CRE function has the potential to deliver the most value over the next five years by supporting organizational efficiencies.

Education Trends to Watch: 2025 Global Real Estate Outlook (PDF) is available for download from JLL.

JLL researchers have also identified trends to watch for the following industries, in addition to the larger Occupier Trends to Watch piece:

• Aerospace and Defense
• Financial Services
• Healthcare
• Industrials
• Insurance
• Life Sciences
• Technology

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The findings also reveal over one in six (17%) Brits have noticed visible structural issues in a building they have lived or worked in.

The 2024 Building Safety Report conducted by SFG20, the UK industry standard for building maintenance, surveyed 1,500 people across 15 UK cities to highlight their perceptions of the safety and maintenance of their local buildings.

The report comes after the UK government has faced increased scrutiny over the last few years following the Grenfell Tower Fire tragedy and the RAAC (Reinforced Autoclaved Aerated Concrete) scandal, causing nationwide apprehensions around building integrity.

One in five (19%) members of the British public expressed their concerns about the health and safety of the building they live in, with mold, poor ventilation and dampness being some of the biggest issues raised.

Breaking this down by region, London is the region most concerned about the safety of local buildings, with 69% of London residents stating they were worried about the safety and maintenance of buildings in their areas. London is followed by Manchester (58%) and Leicester  (55%).

Concerns were raised over the government’s efforts to maintain and improve buildings in their area, with 30% saying they felt dissatisfied with the government’s efforts and 30% distrusting that local buildings are safe in accordance with current building safety standards.

Jason Instrell, industry lead at SFG20, shared his thoughts on the survey’s findings:

It is concerning to see an overwhelming majority of the British public concerned with the safety of their local buildings.

Over the last decade, the UK has seen a string of events that have placed the maintenance of local infrastructure under a particularly intense spotlight.  The use of RAAC in schools, Grenfell Tower and Dagenham Tower block fires has led the public to question the importance and overall safety of our buildings, both commercial and residential.

The introduction of the Building Safety Act in 2022 saw stricter rules on the safety of buildings and it remains the UK government’s responsibility to ensure the public feels safe and educated about the maintenance of these buildings. We hope this report will show the UK government the immediacy and attention required to uphold the safety of the buildings we live and work in.

Launched in 1990 by the Building Engineering Services Association (BESA), SFG20 is recognized as the UK industry standard for building maintenance specifications. With access to a library of over 2000 maintenance schedules that update dynamically to reflect changes in legislation and health and safety regulations, you can create customized maintenance schedules that are designed to keep you compliant while also saving you time, effort and money.

The complete SFG20 Building Safety Survey 2024 is available online from SFG20.

For more about the Greenfell Tower fire, see: “FMLink Special Report: The London apartment fire — why is this important for facilities managers?”

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CBRE’s analysis of the 100 largest office leases revealed that their average size rose to 288,834 sq. ft. in 2024, an 8% increase from 2023. The average had been declining since 2020 except for an isolated increase in 2021.

A similar trend was seen in overall U.S. office leasing, where the average size of newly signed office leases increased slightly last year to 29,774 sq. ft. after four years of declines. CBRE tracks leases of 10,000 sq. ft. or larger.

Whitley Collins, CBRE’s Global President of Occupier Advisory & Transaction Services, stated:

The 100 largest office leases of 2024 underscore our view that more companies are done shrinking their office footprints to match new office attendance patterns. Some likely found they actually need more office space than they assumed and therefore must backtrack. Others are expanding their headcount as the economy gradually recovers.

Tech rebound

The tech industry accounted for 29 of the largest leases of 2024 up from just 11 in 2023. That vaulted tech ahead of the finance and insurance sector, which logged 15 larges leases, and the business and professional services sector, which notched 13.

The tech industry increased its overall office leasing last year, partly due to the growth in artificial intelligence. Tech’s activity across all leases larger than 10,000 sq. ft. topped all other sectors in Q4.

Jessica Morin, CBRE’s Americas Head of Office Research, pointed out:

Tech’s office-leasing activity rebounded strongly in 2024, but it’s still below its pre-pandemic level. That’s the case for the aggregate amount of office leasing in the U.S., too.

Renewals on the rise

More companies signing mega leases opted to stay put last year rather than relocate. A full 68 of the largest 100 leases were renewals, up from 58 in 2023 and 44 at the recent low point in 2021.

Two influences likely contributed to the rise in renewals, according to the report. First, staying put is less expensive than relocating and outfitting and designing that new space.

Second, a slowdown in office construction in recent years has limited the availability of large blocks of high-quality office space in certain markets, making it harder and more expensive for companies to find better locations.

NYC, DC lead in share of top leases

On the market level, Manhattan led all markets by a wide margin for share of the largest 100 leases than other regions.

To read the full report, 2024’s Top 100 Office Leases: Occupiers Take More Space on Average,  visit CBRE.

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Texas and California lead the rankings, with Dallas taking the top spot, followed by Houston (#2), Los Angeles (#3), and San Francisco (#5). Atlanta secured the #4 position, completing the top five cities. Other notable cities on the list include Honolulu, New York, and Tampa, emphasizing the widespread nature of pest issues across diverse regions.

Marc Potzler, Board Certified Entomologist and Technical Service Manager for Terminix, explained:

Pest pressures in commercial spaces can vary by region, season, and industry, but they all have one thing in common: if left unaddressed, pests can harm employee health, disrupt daily operations, and damage reputations. This annual ranking aims to raise awareness around the importance of year-round pest management to protect businesses of all types.

Top 10 Pest Cities for Businesses in 2025:

1. Dallas
2. Houston
3. Los Angeles
4. Atlanta
5. San Francisco
6. Honolulu
7. New York
8. Tampa, FL
9. Columbus, Ohio
10. Miami

Businesses and organizations in America’s buggiest cities face unique challenges in managing pest infestations, which can disrupt operations, harm reputations, and pose health risks. According to the report, industries such as restaurants, grocery stores, hotels, warehouses, and healthcare facilities are particularly vulnerable due to factors such as food availability, high foot traffic, and storage conditions:

1. Restaurants: Food availability attracts pests like rodents and cockroaches, making these establishments prime targets for infestations.
2. Food retail: With a constant supply of food products and potential spills, grocery stores create an inviting environment for pests.
3. Hotels: High foot traffic and varying cleanliness standards can lead to pest issues, particularly bed bugs and cockroaches.
4. Warehouses: Often storing food or products, warehouses can provide plenty of hiding spots for pests, making inspections crucial.
5. Hospitals and healthcare facilities: The combination of food and waste, along with high foot traffic, makes healthcare facilities and hospitals vulnerable to pests.

Recognizing these risks empowers business and institutional owners and managers to take proactive steps to protect their properties and customers.

Terminix’s latest report highlights how pest control is a crucial consideration for businesses from coast to coast. Regardless of size or industry, all companies can benefit from an Integrated Pest Management (IPM) plan tailored to the business’s unique needs. Unlike traditional methods that rely on chemical treatments, IPM integrates various approaches to minimize environmental impacts and enhance long-term effectiveness.

For more information about how to protect your business, organization or institution from pests, visit Terminix.

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Connected portfolio intelligence platforms (CPIPs), a software platform category introduced by Verdantix in May 2022, go beyond traditional integrated workplace management system (IWMS) solutions by integrating real-time data, advanced analytics and AI to optimize building performance and elevate occupant experiences.

As vendors enhance their offerings through acquisitions and strategic partnerships, the boundaries between CPIP/IWMS and digital building IoT platforms are increasingly blurring, fueling innovative solutions that deliver even greater value to customers across the real estate landscape.

The latest Verdantix report, Green Quadrant: Connected Portfolio Intelligence Platforms (CPIP/IWMS) 2025, provides heads of facilities, information technology (IT) operations and real estate professionals with comprehensive insights to select the best-fit provider for their requirements.

Of the 12 most prominent CPIP providers in the market, eight leading firms — Planon, IBM, Eptura, MRI Software, Tango, Johnson Controls, Spacewell-Nemetschek and Nuvolo — demonstrated advanced CPIP/IWMS capabilities.

The report highlights how vendors are harnessing AI to enhance their platforms and gain market share, from AI-powered chatbots and predictive maintenance, to intelligent space-planning solutions, such as Tango’s AI-driven floorplan optimization tool.

Key report findings:

• Major building technology providers are actively acquiring CPIP/IWMS vendors to expand their market reach and offer comprehensive tech-enabled solutions. This trend is driving innovation and accelerating the integration of IoT and AI capabilities into CPIP solutions. Recent acquisitions include Schneider Electric’s control of Planon and Trane Technologies’ acquisition of Nuvolo.
• Strategic partnerships are enabling providers to deliver localized support and functionality across new markets. For example, Johnson Controls’s acquisition of FM:Systems has seen a comprehensive integration of FM:Systems functionality into Johnson Controls’s OpenBlue digital platform; and Planon has partnered with EY Advisory Netherlands and US-based consultancy EBUSINESS STRATEGIES, and acquired the global firms AIA, COOR and SPM Assets.
• Vendors are integrating AI to enrich analytics, streamline processes and enable features such as chatbots, predictive tools and data-driven insights, for example, the AI tools offered by MRI Software, Planon, Service Works Global and Tango.
• Energy and sustainability management remain critical as firms strive to align operations with environmental goals by tracking energy performance and leveraging financial data, for example through Spacewell Energy.
• Buyers are transitioning towards integrated CPIP/IWMS solutions to streamline operations and enhance decision-making. The comprehensive nature of these platforms often makes it easier to secure C-Suite approval and drive digital transformation.

Joy Trinquet, senior analyst at Verdantix, explained:

The CPIP market is undergoing a seismic shift, transforming real estate management with IoT-enabled platforms and advanced analytics. By catering to a broad range of stakeholders — from real estate managers to employees — CPIP solutions empower organizations to optimize their real estate portfolios, reduce costs and enhance workplace experiences. To stay ahead, vendors must prioritize AI-driven innovation, seamless user experiences, strategic partnerships and continuous adaptation to industry trends.

To learn more, read the full report here: Green Quadrant: Connected Portfolio Intelligence Platforms (CPIP/IWMS) 2025.

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The UAE, a country situated along the Persian Gulf, has a population of 9.97 million and has been one of IREM’s newest international markets offering education and certification training to local property management professionals. The UAE is made up of seven emirates. While the emirate of Abu Dhabi serves as the capital, the emirate of Dubai is the center of international business and the country’s most populated area.

2024 IREM President Libby Ekre, CPM commented:

We’re thrilled to announce the creation of our first IREM chapter in the UAE. IREM has been building relationships with our partners there since 2018, and our founding members in the area were instrumental in expanding our offerings and elevating awareness of IREM locally. With a chapter in Dubai, IREM will be able to provide even more programs to professional property managers in this exciting region.

Muhammad Jawad stated:

This is a monumental moment for the real estate management profession in the UAE. The approval of the UAE Chapter not only strengthens our regional network, but also brings global best practices closer to local professionals. Our focus will be on fostering education, innovation, and ethical leadership across the industry.

Marked by innovation and fast development, the UAE has some of the most creative real estate in the world, such as indoor skiing, an underwater restaurant, and indoor scuba diving. IREM is proud to continue expanding its offerings to the UAE through this chapter to elevate property management practices and professionals in the UAE.

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