Boston Commercial Real Estate Could Be Converted to Housing Soon

Boston is set to introduce a pioneering initiative known as the "Downtown Office to Residential Conversion Pilot Program," which aims to encourage the transformation of underutilized office buildings into residential spaces, as announced by Mayor Michelle Wu. The program, a collaborative effort between the Boston Planning & Development Agency (BPDA), the Mayor's Office of Housing, and the city's finance cabinet, is expected to commence accepting applications in the upcoming fall season. Its primary objective, as outlined in a press release, is to augment the availability of housing in the downtown area while fostering increased foot traffic to support local businesses.

Mayor Wu emphasized the significance of taking proactive measures to address housing shortages and enhance affordability in order to cater to the needs of Boston's current and future residents. She expressed her belief that this program would capitalize on the opportunity to redefine Downtown Boston as a dynamic space that fosters collaboration, creativity, and a vibrant lifestyle.

Arthur Jemison, Boston's planning chief, explained that the program aims to incentivize collaboration between lenders, property owners, downtown stakeholders, and the state, with the intention of bolstering the production of much-needed housing within the downtown core. Jemison further added that this public-private partnership opportunity is the ideal mechanism to unlock new housing options and shape a mixed-use neighborhood in Downtown Boston.

Sheila Dillon, Boston's chief of housing, highlighted the program's potential to fulfill the housing requirements of the flourishing city while revitalizing and stabilizing the downtown neighborhood. By converting office spaces into residential units, this initiative seeks to provide new residents with access to a wealth of amenities, including retail opportunities, recreational spaces, and multiple transportation hubs. Dillon emphasized that this endeavor aligns with the administration's commitment to establishing accessible and equitable housing in all neighborhoods, while concurrently strengthening local small businesses and commercial centers.

To incentivize owners of commercial office buildings in downtown areas, the mayor's office has proposed reduced property tax rates in exchange for the prompt conversion of their properties into residential spaces.

The program will be time-limited and exclusively accept applications until June 2024.