ADAPTIVE REUSE IN MULTIFAMILY
Written by: Cody Carey
As an associate within Colliers’ Multifamily Advisory Group, Cody Carey works with a team of professionals whose focus is middle-market properties across the country. He brings to the team a holistic perspective of building and maintaining relationships with clients and prospects because of his understanding that putting himself in their shoes is the key to a successful relationship. Cody is working to build Colliers’ multifamily business in Columbus, and works with a highly collaborative, integrated team that is building value for clients. Keep reading to get Cody’s take on the future of adaptive reuse in multifamily.
Despite the COVID pandemic, the multifamily sector has remained strong. Many investors and developers are moving forward with plans to repurpose certain obsolete office and warehouse properties into multifamily units.
What are your thoughts on the future of this trend? Do you think Columbus will see more of this in the future?
Multifamily has remained strong through COVID with primary markets taking the biggest hit in occupancy and rent decline. Across the broad Midwest, Class A office space is being developed more frequently as businesses seek cheaper real estate solutions especially with amenities of primary markets being limited throughout COVID. Adaptive reuse projects are well underway as the future of the office space and traditional hospitality assets still have their unknowns. The difficulty of these projects, from the transaction perspective, is that a seller may have higher expectations on the distressed asset as this experience is still all new and the buyer also has to manage the tenants still holding their space. If the acquisition comes from a distressed perspective, the multifamily and mixed-use adaptive reuse solution would likely result in more value-creation and resiliency. Columbus, like many other Midwestern cities, will see these projects happen but there are many different considerations for urban core product nowadays than there was last year.