I want to convert office space into residential living space.

[Dan Hunnicutt]

I’m thinking Texas or Arizona. Although the sellers are still thinking the properties are going worth more than they are.

[Scott E.]

I looked at doing this with a ~25,000 square foot office building last year. Turned out we could fit about ~18 apartment units in there if we wanted. Converting office to residential is a great plan with many companies shifting to a work-from-home posture.

Admittedly I would have been getting in way over my head to do this deal. But the office building caught my eye as a perfect fit based on location and the layout of the existing building.

I brought a contractor out there who specialized in office conversions. He has done 4-5 in the past couple of years. I learned that the entitlement process is grueling. It takes about a year and you usually will face some opposition from surrounding owners and tenants.

He structures his deals where the due diligence period is very long, and subject to the ability to rezone the property. Of course most sellers wont entertain this, but some motivated sellers will.