Opinion: Office-to-housing conversions not a wonder drug for SJ's dysfunctional downtown

The Silicon Valley Business Journal's Ashley Farley reminds that while cities should relax zoning regulations—so developers can convert unused offices to housing—they must also make downtowns desirable, lively places to spend time in. We're scratching our heads: Any idea if rampant open-air drug use, criminal activity, and homelessness are spelling doom for DTSJ's foot traffic?

Converting unused or dated office space into new uses — in particular, much-needed housing — will be important, but those who work in real estate and who are serving as consultants to government officials and downtown business-improvement districts say conversions won't be a silver bullet to revitalizing downtowns. After all, those projects are expensive and risky to take on and often have specific infrastructure requirements to even be feasible.

"Cities recognize it’s not a panacea," said Kate Collignon, a partner at HR&A Advisors, a consultancy on real estate and economic-development projects. "It’s an important part of the conversation but it can’t be the sole solution."

More than three years after the onset of the Covid-19 pandemic, many U.S. downtowns have yet to fully recover, in large part because of sluggish return-to-office activity but also due to concerns about public safety. Data from Placer.ai's nationwide office building index, which looks at foot-traffic data from 800 office properties across the country, reported the first half of 2023 saw foot traffic to offices down 39.7% compared to the same period four years ago.

Those like Collignon who are actively studying downtowns in the wake of the pandemic — and working with different groups in the public and private sectors — say making downtown a desirable place to live, visit or stay remains key.

A combination of factors — increased office vacancy, decreased pedestrian activity, and less activity to retail and food-and-beverage venues — has made downtowns less exciting at a moment when those city spaces need to attract residents, visitors and workers, Collignon said.

This article originally appeared in the Silicon Valley Business Journal. Read the whole thing here.

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