Not long ago, cities across the Midwest were grappling with disinvestment and stagnant downtown growth. Many were labeled “donut hole” cities—urban cores hollowed out as residents and employers migrated to surrounding suburbs. Daytime office activity offered brief signs of life, but by evening and weekends, downtown streets sat mostly empty. But now, Cincinnati’s Downtown Office to Residential Conversions are leading a larger urban revival, catalyzing reinvestment and drawing residents back into the city center.
Now, however, a remarkable shift is underway. Re-urbanization trends are breathing new life into these urban cores. Cincinnati, in particular, is leading the charge, with an unexpected surge in demand for a live-work-play lifestyle that favors walkable downtown neighborhoods over suburban sprawl.
At the heart of this shift? Cincinnati’s Downtown Office to Residential Conversions.
Cincinnati’s Downtown Office to Residential Conversions Are Driving Stronger Fundamentals
Cincinnati ranks 7th nationally for office-to-residential conversions—a testament to how strategic reuse of obsolete space is reshaping the city’s real estate landscape. Since 2012, nearly 3 million square feet of outdated Class B and C office space has been transformed into hotels or residential units.
As a result:
- Class A downtown office vacancy has fallen dramatically, from 25.3% in 2014 to just 10% today.
- The office market’s performance is stabilizing, even as many other U.S. cities face worsening vacancy trends.
Cincinnati’s Downtown Office to Residential Conversions haven’t just removed excess inventory—they’ve created lasting value across the urban core.
Conversions Are Easing Pressure in Cincinnati’s Office Market
While national office vacancy rates continue climbing—now 270 basis points above the 10-year average—Cincinnati has bucked the trend. Its 10% downtown vacancy rate is just 70 basis points above its 10-year average, showcasing a city with supply and demand far better aligned.
These conversions haven’t only restored equilibrium. Prior to COVID, they helped narrow rent gaps between Class A and B buildings, proving that eliminating obsolete stock benefits the entire market.
Cincinnati’s Downtown Office to Residential Conversions aren’t a one-off phenomenon.
Here are a few noteworthy projects that illustrate the impact of adaptive reuse. These projects reflect a coordinated and growing trend, with high-impact projects creating critical mass:
- AT 580: Former 580 Walnut Building converted into 180 Class A apartments.
- City Club: Phase I created 294 apartments; Phase II (PNC Tower) will add ~262 more.
- Provident Bank HQ: Converted into 161 units.
- Textile Building: Now becoming 282 apartments.
- Mercantile Building: Set to deliver 172 units.
- 830 Main Street: Adds 60 units.
- Terrace Plaza Hotel: Transforming into 160 residential units plus retail and commercial space.
Together, these conversions are removing outdated inventory, elevating design quality, and increasing housing supply without overbuilding.
Multifamily Demand Remains Robust Downtown
Importantly, these 2,000+ new units aren’t creating a glut. Multifamily demand in downtown Cincinnati remains strong, fueled by the area’s authenticity, architecture, and walkability.
Each new conversion enhances the streetscape and contributes to a lively ecosystem of retail, restaurants, and public spaces. These secondary effects are reinforcing the attractiveness of urban living and supporting continued growth in rents and occupancy.
It’s no coincidence that Cincinnati ranks among the nation’s top metros for rent growth.
What Cincinnati’s Conversion Trend Means for Investors
Cincinnati’s Downtown Office to Residential Conversions offer a powerful case study in how adaptive reuse can:
- Improve market fundamentals
- Stabilize vacancy rates
- Stimulate new housing in high-barrier locations
As investors assess urban assets post-COVID, this model presents a compelling blueprint: remove obsolete product, add quality housing, and restore vibrancy to underutilized cores.
Want to see how we leverage office-to-resi trends in high-growth cities like Cincinnati? Explore our strategy and see why we believe adaptive reuse is one of the most compelling themes in real estate today.