What Data Reveals About Where Office-to-Housing Conversions Actually Work

• Conversion candidates: Developers are using new layers of property and zoning data to pinpoint office buildings ripe for housing conversions.

• Builder bifurcation: Construction pipeline timelines have slowed overall, except for data center and manufacturing projects.

• Rightmove’s legal challenge: A £1 billion class action against Rightmove over agent fees could reshape the landscape of online property portals in the UK.

• Smart building trends webinar: Smart buildings are evolving as AI and connected systems redefine how properties think, adapt, and perform. Sign up

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Office-to-Residential Conversion

What Data Reveals About Where Office-to-Housing Conversions Actually Work

Developers are turning to data to help solve one of real estate’s toughest challenges: figuring out which office buildings can actually be turned into housing. As vacancies rise and housing shortages deepen, conversion projects have become more appealing, but not every office makes sense to transform. Factors like land scarcity, local housing prices, and zoning flexibility all influence where conversions can succeed. Cities such as Los Angeles and New York, where space is limited and housing costs are high, tend to offer stronger opportunities than sprawling markets like Dallas where new construction is cheaper and easier.

New technology is making the process more targeted. Platforms like Crexi are working to overlay zoning and permissible-use data on top of property listings so investors can see not just what exists, but what could be allowed. Developers still need to understand local regulations and connect with city officials, since many municipalities have designated areas they want to see redeveloped. Increasingly, the best candidates for conversion aren’t downtown towers but suburban office parks with low-rise buildings, good school districts, and potential for mixed-use communities.

The data-driven approach is changing how investors think about adaptive reuse. Developers are now weighing not only building characteristics but also demographics, school quality, and long-term neighborhood trends before taking the plunge. Many private investors see these projects as long-term plays, betting that the right conversion in the right location will deliver steady returns as cities evolve. It’s a reminder that, in this new phase of real estate, knowing where people want to live can be just as important as knowing where they used to work.

Overheard

Data Center Work Holds Up the Entire Construction Industry

New York’s plan to require all-electric new construction has hit a pause button. The state agreed to delay enforcement of its All-Electric Buildings Act, a landmark policy that would have banned natural gas and heating oil systems in many new buildings starting next year. The law, the first of its kind passed by a state legislature, was challenged in federal court by a coalition of gas companies and building groups who argue that it’s preempted by federal energy regulations. Until the appeals process is finished, the rule is on hold.

The delay highlights the growing tension between climate ambition and the practical limits of the built environment. Electrifying new buildings makes sense on paper—new heat pump technology and cleaner grids promise lower emissions over time—but the economics still make developers wary. Many projects in colder parts of the state depend on gas for affordable heating, and the electric grid, already strained during peak demand, isn’t yet ready to carry the additional load of full-scale building electrification. The cost of compliance could ripple through housing prices and construction timelines, something local officials are reluctant to risk amid a housing shortage.

This legal timeout might end up shaping national policy as well. Other states and cities, including California and Washington, have been testing the same approach, only to face similar legal challenges and political blowback. The idea of decarbonizing buildings through bans alone is giving way to a more incremental strategy—one that includes incentives, grid modernization, and transitional fuels. If New York’s experience shows anything, it’s that the road to all-electric buildings will take more than legislation. It will take time, technology, and a grid that can keep up.

Why Rightmove’s £1 Billion Lawsuit Threatens More Than Its Profits

The UK’s leading property portal, Rightmove, finds itself in unfamiliar territory—on the defensive. A looming lawsuit could force it to return roughly £1 billion to estate agents who claim they were charged excessive and unfair listing fees, a challenge that strikes at the heart of Rightmove’s fee-driven model. This comes just as the company warns that profits will slow due to heavy investments in AI and platform upgrades, an ambitious pivot that has not played well with its investors due to the reality of competing in a cooling market.

The case comes at a sensitive time for Rightmove and the broader portal ecosystem. The company dominates UK property search, hosting more than a million listings a month and commanding over 80 percent of buyer traffic. That kind of market share makes it indispensable for agents—but also a target for scrutiny. As competition from AI-driven platforms grows and housing demand softens, questions are mounting about whether the traditional pay-to-list structure can survive. What once seemed like a perfect digital monopoly now looks like a stress test for the entire portal business model.

If Rightmove is forced to cut fees or restructure its pricing, the shockwaves could reach other major listing sites and reshape the economics of digital real estate altogether. The larger question is whether portals that once promised to democratize property markets have instead become utilities that need oversight. For Rightmove, the outcome may determine whether it remains a tech leader or becomes a cautionary tale about the limits of platform power in property.

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