With Austin office buildings 20 percent vacant, conversion to housing remains out of reach

In Austin, office buildings are grappling with a 20% vacancy rate, prompting discussions on converting these spaces into residential units. However, significant challenges such as high conversion costs and structural incompatibilities make this option economically unfeasible unless vacancies rise significantly. Real estate experts suggest that only older buildings with specific characteristics might be suitable for conversion, but even then, the economic conditions are not favorable. This situation has led to a cautious approach, with developers preferring to wait out market downturns rather than undertake costly conversions.