Originally published by Scott Lamontagne and Chase Gardner on February 27, 2024, for UrbanLand Magazine.

As office values have declined, it’s created a pivotal moment for astute investors and developers as they evaluate the underlying land value and look for the best property uses over the long term. Indeed, there is latent potential in the evolving office landscapes, but a keen and studied eye will be required to discern the true opportunities from the potential money pits.

Identifying redevelopment prospects starts with defining the criteria to be used. Both the criteria and how they are weighted can vary based on the specific property. Here are a few considerations:

• The vintage of the office property plays a crucial role in identifying potential added costs, such as asbestos remediation, and in the case of adaptive reuse, structural integrity, and adaptability.
• Parking—both current and potential—will impact future uses significantly.
• Occupancy rates will identify underutilized properties, with anything under 70 percent considered to be low.
• Investors/developers also want to look at the existing leases, with the ideal range being under three years.
• And, of course, the surrounding area and factors such as the local job market, walkability, and neighborhood demand drivers will determine whether a planned project has the ability to attract residential tenants.