Cincinnati’s downtown real estate market has entered a new chapter, driven by the challenges and opportunities brought to light during the COVID-19 pandemic. With the rise of remote work reshaping office dynamics, the city has embraced office-to-residential conversions as a strategy to breathe new life into its urban core. These conversions not only address rising office vacancies but also cater to growing housing demands, offering a dual solution to modern urban challenges. By repurposing underutilized office spaces, Cincinnati is positioning itself as a forward-thinking city committed to revitalization and sustainable development.
While the city’s multifamily market has shown resilience over the years, the pandemic underscored the vulnerabilities of its downtown submarket, which saw fluctuating rent growth and occupancy rates. Adaptive reuse, however, has provided a stabilizing force, demonstrating how repurposed office buildings can contribute to the city’s housing stock and economic recovery. Local leaders and developers have seized this opportunity, leveraging public-private partnerships and innovative policies to drive conversions.
Today, Cincinnati stands out as one of the national leaders in the adaptive reuse movement. With projects like The Provident and AT580 already reshaping the city’s residential landscape, and ambitious plans for developments like 7W7, Cincinnati is blending historical preservation with modern housing solutions. This commitment to adaptive reuse not only preserves the city’s architectural heritage but also enhances its economic resilience, offering a roadmap for other cities to follow.
Pre-COVID and COVID-19 Economic Trends
Before the pandemic, Cincinnati’s multifamily market demonstrated consistent growth, with adaptive reuse projects carving out a small but impactful niche. Despite their smaller market share, adaptive reuse projects like The Baldwin and Textile Building have contributed to the city’s multifamily housing stock, often preserving historical architecture and revitalizing surrounding neighborhoods.
During the pandemic, the Cincinnati metro market’s rent growth slowed, but downtown submarkets experienced steeper declines due to reduced foot traffic and office closures. Adaptive reuse properties initially struggled with demand volatility, showing negative rent growth in some quarters. These fluctuations often stemmed from the limited scale of adaptive reuse properties compared to new developments, making their performance more sensitive to market dynamics.
Recovery and Comparison Between Cincinnati Metro and Downtown Submarket
The post-pandemic recovery saw adaptive reuse projects rebounding strongly, outpacing downtown submarket growth in rent performance during key periods. By Q4 2022, adaptive reuse projects achieved a 10.1% rent growth rate, highlighting their resilience in attracting tenants seeking unique living spaces. However, the challenges of retrofitting older office structures—such as layout inefficiencies—have tempered their overall impact on the market.
A Vision for Sustainable Growth
Cincinnati’s adaptive reuse efforts demonstrate the city’s innovative approach to tackling urban challenges. By transforming underused office spaces into residential units, the city is not only addressing housing shortages but also fostering economic growth in its downtown core. Adaptive reuse projects, despite their smaller market footprint, remain a critical tool for urban revitalization, complementing the contributions of new developments.
With targeted incentives and a collaborative public-private framework, Cincinnati has set a precedent for sustainable development. As the city refines its strategies for adaptive reuse and urban planning, its efforts will likely serve as a model for other cities navigating similar challenges.