Opportunities and risks when converting office space into living space

The conversion of office space

The idea of converting office space into living space has gained popularity in recent years due to the changing work culture and the increasing demand for living space in urban rural areas.

This article highlights both the opportunities and challenges that need to be considered in such projects.

The conversion of office space into residential space primarily has a number of advantages that can be important for both property owners and society as a whole.

Economic benefits for property owners

‍Theconversion of office space into residential space is an economically attractive solution for owners of commercial real estate, particularly in areas with high demand for residential space. This conversion makes it possible to transform unused properties into profitable assets, which is particularly beneficial in the case of existing vacancies.

Sustainability and resource efficiency

‍Theconversion of existing buildings is often more sustainable than new construction. It minimizes the need for new building materials and helps to reduce the ecological footprint. In addition, modernization in the course of conversion can improve the energy efficiency of the converted buildings.

Revitalization of city districts

‍Theconversion of office buildings into residential space can contribute to the revitalization of city districts. This leads to an increase in the number of residents in the area, which can have a positive impact on local stores and services and lead to the creation of vibrant, mixed communities.

Flexibility in the use of space

‍Theconversion offers the opportunity to realize more flexible living concepts that are tailored to the needs of today's city dwellers. For example, larger office spaces can be converted into loft apartments or apartments with flexible floor plans.

Strengthening the local economy

‍Conversionprojects can strengthen the local construction industry and skilled trades by generating jobs and orders. This can provide an important boost, particularly in economically weaker regions.

‍However, although this approach seems more promising at first glance, it also harbors risks.

Structural and constructional challenges

‍Officebuildings were not originally designed as living spaces, which poses challenges. Their structure, floor plans and technical equipment are often not suitable for residential purposes. For example, the room layout in offices cannot always be easily converted into residential room structures.

Legal and regulatory hurdles‍

In many cases, the conversion of commercial space into residential space requires approval from the relevant authorities. Depending on local building regulations, this can be a complex and time-consuming process. Residential buildings are subject to different fire and safety regulations than office buildings, which can require extensive adaptations.

Economic risks

‍Unforeseenproblems and delays, such as those that occurred on the "Steglitzer Kreisel" in Berlin, can lead to considerable additional costs. Changes to plans, technical difficulties or unforeseen renovation measures can quickly exceed the original budget. In addition, no one can say with certainty how the real estate market will develop, which could quickly make projects unprofitable.

Technical requirements

‍Adaptingventilation, heating and sanitary systems poses a further challenge. Office buildings have central air conditioning and ventilation systems that are not ideal for individual apartments.

Contaminated sites and remediation

‍Oldoffice buildings may contain contaminated sites such as asbestos or other materials that are harmful to health. Thorough remediation is essential, but can lead to considerable costs.


Converting office space into residential space can be a sensible response to current market conditions. Nevertheless, real estate companies and investors should not underestimate the associated risks and should carefully consider whether such projects are actually economically and technically feasible.

Increased efficiency when converting office space into residential space

When converting office space into residential space, real estate companies and investors face complex challenges ranging from structural adjustments to legal and economic considerations. This is where PROBIS offers decisive added value with its advanced AI technology.

Innovative calculation through benchmarks and AI

PROBIS relies on advanced AI technologies to make real estate projects efficient and profitable. By using benchmarks and AI, PROBIS supports customers in identifying the most profitable development and calculation variants for conversion projects. These intelligent analyses take various asset classes into account and automatically determine the optimal development scenario.

AI-based precision for detailed project analyses

PROBIS' AI draws on extensive data sources to provide precise real estate valuations and property insights. These big data analytics enable an accurate assessment of potential developments and identify possible risks at an early stage. Automated processes increase the efficiency of market analyses.

Intelligent optimization of conversion options

PROBIS not only recognizes possible conversion options, but also provides insights into the expected building use in new and renovated properties. The AI-based software selects efficient floor plans, taking into account surrounding projects and other relevant factors.

With PROBIS, customers have all project controlling aspects in a standardized solution. The software adapts data and processes individually, minimizes errors and saves time. From automated data transfer to comprehensive KPI determinations, PROBIS makes the management of real estate projects much easier.


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