- Office conversions in Manhattan will nearly double, with 9.8M SF now planned.
- Midtown accounts for over half of the proposed office-to-residential pipeline.
- 51.6% of projects target Class A product, up sharply from pre-pandemic norms.
- RXR and partners are leading several major conversions, with significant funding secured.
Office Conversions Gain Steam
According to Globe St, Manhattan’s office-to-residential pipeline is expanding at a rapid pace. In 2025, office conversion starts hit 5M SF, a two-decade record, according to Cushman & Wakefield. The report now estimates that 9.8M SF of office space are in some stage of planning for residential conversion, spanning nine new projects and signaling growing momentum in this trend.
Midtown Dominates Pipeline
Midtown is leading Manhattan office conversions, making up 51.6% of projects, a dramatic jump from its 23.4% share before the pandemic. By comparison, Midtown South represents the smallest share at 9.7%, while Downtown accounts for 38.7%. Notably, some proposals may not become reality—two prominent Midtown towers have reverted to office redevelopment due to strong market demand in that corridor, as leasing activity in parts of Manhattan has recently shown renewed momentum, reinforcing confidence in well-located office assets.
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Shift to Class A Product
Developers are increasingly targeting higher quality assets for office conversions. Class A office space accounts for 51.6% of proposed conversion projects, a significant rise from the 5.5% average seen between 2004 and 2019. In Midtown, eight out of twelve proposed Class A conversions are sited in the West Side and East Side/UN submarkets, reflecting demand for prime locations.
Major Deals and Funding
Investors are backing large-scale office-to-residential initiatives. RXR and Apollo have secured $500M to convert a 33-story office property into 796 residential units. RXR is also working on 5 Times Square’s transformation, which could deliver up to 1,200 new residential units. Meanwhile, Metro Loft Management and David Werner Real Estate Investments locked down $720M for converting the former Pfizer HQ at 219 and 235 East 42nd Street, with RXR also involved in those efforts.
