Empty downtown office buildings. Housing shortage in almost all important markets. Is there a way to address both issues simultaneously by converting historic but underutilized office buildings into downtown apartments and condos? An idea that has been discussed in recent years and implemented in some cities. But while the idea seems simple enough — repurposing existing office space for residential and mixed-use projects — there are some real challenges that limit the feasibility of converting large offices into apartments.

The commercial real estate market faces an uncertain future. While some companies have begun to require employees to return to the office, many continue to work under their hybrid or fully remote working models, which companies may commit to permanently. And while office occupancy has risen in some major cities in recent months (CBRE notes that both Austin and Houston had occupancy rates above 60% in January, up about 25% from 2022 levels), are the ongoing impact of COVID-19 and uncertainty in global financial markets is keeping many office buildings in the country’s major cities empty. Those returning-to-office tenants are focusing their office space searches on high-quality, sustainable spaces with plenty of amenities to encourage workers to return to the office. This flight to quality leaves behind some older and in many cases architecturally relevant office buildings. As a result, there are growing opportunities for the potential adaptive reuse of these existing underutilized structures.

Repurposing existing structures removes or reduces some of the hurdles that new construction projects typically face. While the interiors of these buildings need to be modernized to meet residential standards, the foundation, core and shell of the building are already in place, eliminating the need to build the vertical components of the project from scratch. Depending on the size, age, and layout of the original structure, the remodeling project may utilize existing HVAC, electrical, plumbing, and elevator systems. These benefits can significantly reduce the time and expense required to bring new housing units to market.

However, adaptive office-to-home reuse also comes with some unique and extensive costs that may make the model unaffordable for specific projects or specific markets. While project developers can save money by using the core and skin of the existing building, they will still incur significant upfront acquisition costs. The interior work itself will also come at a high price, which in turn will require developers to seek deeply discounted offers from motivated sellers looking to sell an otherwise difficult or vacant asset. And while the existing core and shell are present in these buildings, office and residential floor panels inherently differ in ways that cannot always be reconciled. Office buildings have deep floor slabs that make it difficult for natural light to reach the interior, and utilities tend to be centralized, meaning existing HVAC, electrical, and plumbing installations may need a major upgrade to accommodate shifts of use from offices housing into account.

Zoning and planning approval processes, building codes and tenant protection regulations are other issues. Cities like New York and San Francisco have strict tenant protection measures such as rent controls and relocation requirements, further increasing operating costs not typically incurred by office buildings. And residential uses are not always permitted by law in central business districts, meaning conversion projects may be subject to additional (often voluntary) review and permit requirements from local governments beyond what would be required for a traditional office development.

Houston: Realizing the potential for converting large offices into residential buildings
Houston, a city known for leading innovations in energy and medicine, has embraced the concept of adaptive reuse, with two iconic mid-century office towers already converted into residential buildings. 800 Bell, an iconic 1960s building that served as ExxonMobil’s former headquarters, was recently sold to New York-based developers who intend to convert the 45-story office building into residential units. Across from downtown, 1801 Smith, another 1960’s office building, is currently being converted into a 372-unit luxury complex, with completion expected later this year. 1801 Smith is a terminus for a portion of the sprawling corridor system connecting 95 city blocks of downtown Houston, which will allow future residents easy access to the downtown community’s restaurants and retail outlets. These projects underscore the benefit of bringing residents to central business districts and promote sustainability by keeping people close to their jobs, within easy reach of public transportation systems and vibrant downtown amenities.

Houston’s Downtown Redevelopment Authority (DRA) is seeking to fund a new adaptive reuse incentive program aimed at redeveloping and repurposing underutilized downtown office space. The DRA recently received funding to conduct a feasibility study in the area to identify potential building candidates and measure owner interest in a full office conversion program. The feasibility study is designed to assess the economic challenges associated with adaptive reuse in Houston, as well as the legal, regulatory and permitting concerns associated with conversion projects.

Government involvement likely needed to facilitate conversion projects
Realistically, given the financial hurdles, government support and funding may be required to make widespread office conversion a reality. The DRA recognizes that one of the critical limiting factors in a full office to apartment conversion is the upfront cost, and notes that the Houston local government must be willing to provide financial support and encourage developers for the office conversion program to be effective tax incentives. Houston has a history of such government support for inner city development initiatives; Between 2012 and 2016, Houston implemented a program designed to incentivize the construction of medium- and high-rise residential buildings in downtown Houston. The Downtown Living Initiative has been very successful as the more than 15,000 units built since the initiative began represent nearly two-thirds of all housing in downtown Houston. Time will tell if other cities make similar efforts to support office tower conversions into apartments, and if such actions significantly change the feasibility of future conversion projects.

Federal politicians have also considered supporting conversion projects. Michigan Sen. Debbie Stabenow and California Representative Jimmy Gomez introduced the Revitalizing Downtowns Act in 2021, expanding existing investment tax credits to add a qualifying office remodeling credit. The credit would be 20% of the conversion project costs incurred in converting a building that (1) prior to conversion was a non-residential building offered for rent to office tenants, (2) essentially from an office use to a residential and commercial use converted for retail use or otherwise used for commercial purposes; and (3) not used for residential purposes for at least 25 years prior to conversion. To qualify, a project would have to include affordable housing – 20% of the units must be available to people whose income is 80% or less of the area’s median gross income, unless the building is subject to a written state or local affordable housing restriction Living room . It’s unclear if the legislation will be reintroduced in the new Congress, but the bill shows the will of policymakers at the national level to support the efficient use of city real estate.

These projects can be expensive, but serve as a tool to address both the problems of much-needed housing and persistent vacancy in business parks. Local efforts such as those proposed by Houston’s DRA, along with similar programs at the local, state, and federal levels, provide opportunities for owners and developers to access otherwise economically unviable or unaffordable projects while meeting the larger social need for more housing opportunities in these large urban areas .

[View source.]

The post Adaptive Reuse: Inventive Reimagining of Former Workplace House to Tackle Differing Calls for | Pillsbury – Gravel2Gavel Development & Actual Property Regulation appeared first on DAILY SAN FRANCISCO BAY NEWS.

Business owners in the Castro are attempting to take matters into their own hands when it comes to the San Francisco neighborhood’s unhoused population.

The Castro Merchants Association, which represents about 125 businesses in the area, sent a letter to city officials on Aug. 8 outlining three demands: 35 shelter beds designated for “mentally ill and substance-abusing individuals who have taken up residence in the Castro, ” a request for monthly metrics on the services offered or provided to unhoused people in the neighborhood, and a plan for what to do after people decline services.

Dave Karraker, co-president of the Castro Merchants Association, told SFGATE that businesses in the association will potentially stop paying taxes if the three demands are not met.

“Whatever they’re doing isn’t working. It isn’t leading to a noticeable difference in the conditions in the Castro as it relates to the drug addicted and the mentally ill,” said Karraker, who also co-owns MX3 Fitness, a gym with two locations in the area.

Karraker said businesses in the Castro have been hit especially hard since the start of the pandemic, and he feels that the neighborhood’s unhoused population – particularly those struggling with addiction and mental illness – are making the problem worse.

“We’re just seeing constant vandalism, constant drug use in public, people passed out on the sidewalk, people having psychotic breakdowns, and it’s just not something a small-business owner should have to deal with,” Karraker said.

He mentioned that the letter’s request for 35 shelter beds comes from a record kept by District 8 Supervisor Rafael Mandelman’s office about “people who are constantly causing issues” in the neighborhood: “That list is typically between 20 and 25 people. So we knew if we got 35 beds, we’d be able to cover those people,” Karraker said.

In a response sent to the business association by the San Francisco Department of Public Health and the Department of Homelessness and Supportive Housing, officials said that it isn’t city policy to designate shelter beds for people from a particular neighborhood. The response also stated that it would be a breach of privacy laws to share information about the case status of specific people with the public.

“However, we greatly appreciate hearing from community members about what they are seeing on the streets and will continue to work with the Castro community to improve conditions for all in the Castro,” the response says.

Karraker said he believes that the city’s response to its homelessness crisis tends to focus on neighborhoods like the Tenderloin, which he feels has been “pushing people into the Castro.”

But some unhoused people from neighborhoods like the Tenderloin say they come to the Castro because they feel safer there as LGBTQ+ people, KTVU reported.

That’s not a recent phenomenon: in 2009, the Journal of LGBT Youth published a study by Jen Reck, an Associate Professor of Sociology and Sexuality Studies at San Francisco State University, called “No One Likes Street Kids – Even in the Castro.”

The study focuses on homeless gay and transgender youth of color in San Francisco, particularly a group of teenagers who used the Castro as a place to seek safety and community.

“The Castro was especially important to these youth because, as gay and transgender homeless young people, other public and private places did not feel safe to them,” the study said.

But the youth featured in the study also reported facing harassment and hostility from community members in the Castro. They mentioned being treated like outsiders in a place that they observed to be “mostly inhabited by gay middle-class adult males,” and said that they felt left out of the community since “it is those who want or are able to spend money in the stores who can fully participate in the neighborhood culture.”

Today, gathering spaces in the Castro are still largely commercial, although there are a number of community organizations in the neighborhood that offer free housing navigation services to LGBTQ+ people. The specificity of these programs could be another reason unhoused people are drawn to the Castro from other parts of the city.

As it turns out, a few of these organizations – including LYRIC, a center for LGBTQ+ youth, and the SF LGBT Community Center, are part of the Castro Merchants Association.

Adam-Michael Royston, LYRIC’s vice president, says the association’s letter is not representative of all unhoused people in the Castro or the spirit of the neighborhood and its history.

“The Castro has been a beacon of hope for queer individuals for more than 30 years, and we have to continuously remember that we need to be inclusive and in community,” Royston said.

He added that as anti-transgender legislation takes off in other parts of the country, an influx of young people fleeing from conservative states have been making their way to San Francisco—and many of them end up in the Castro.

“The reason that so many of us ended up in the Castro is the same reason that so many of our youth end up here, too,” Royston said. “I think that letter, to youth fleeing the crises that they’re in, is not supportive.”

But business owners like Karraker believe that people who openly use drugs and experience public mental health crises are causing the neighborhood to suffer, regardless of their identity.

“No matter who it is, we can’t accept the idea that someone can come to the Castro, do drugs and be mentally ill to the point that they’re a threat to themselves or a threat to residents or tourists. This can’t continue,” Karraker said.

The post San Francisco enterprise house owners’ calls for decried by LGBTQ advocates appeared first on DAILY SAN FRANCISCO BAY NEWS.

Business owners in the Castro are attempting to take matters into their own hands when it comes to the San Francisco neighborhood’s unhoused population.

The Castro Merchants Association, which represents about 125 businesses in the area, sent a letter to city officials on Aug. 8 outlining three demands: 35 shelter beds designated for “mentally ill and substance-abusing individuals who have taken up residence in the Castro, ” a request for monthly metrics on the services offered or provided to unhoused people in the neighborhood, and a plan for what to do after people decline services.

Dave Karraker, co-president of the Castro Merchants Association, told SFGATE that businesses in the association will potentially stop paying taxes if the three demands are not met.

“Whatever they’re doing isn’t working. It isn’t leading to a noticeable difference in the conditions in the Castro as it relates to the drug addicted and the mentally ill,” said Karraker, who also co-owns MX3 Fitness, a gym with two locations in the area.

Karraker said businesses in the Castro have been hit especially hard since the start of the pandemic, and he feels that the neighborhood’s unhoused population – particularly those struggling with addiction and mental illness – are making the problem worse.

“We’re just seeing constant vandalism, constant drug use in public, people passed out on the sidewalk, people having psychotic breakdowns, and it’s just not something a small-business owner should have to deal with,” Karraker said.

He mentioned that the letter’s request for 35 shelter beds comes from a record kept by District 8 Supervisor Rafael Mandelman’s office about “people who are constantly causing issues” in the neighborhood: “That list is typically between 20 and 25 people. So we knew if we got 35 beds, we’d be able to cover those people,” Karraker said.

In a response sent to the business association by the San Francisco Department of Public Health and the Department of Homelessness and Supportive Housing, officials said that it isn’t city policy to designate shelter beds for people from a particular neighborhood. The response also stated that it would be a breach of privacy laws to share information about the case status of specific people with the public.

“However, we greatly appreciate hearing from community members about what they are seeing on the streets and will continue to work with the Castro community to improve conditions for all in the Castro,” the response says.

Karraker said he believes that the city’s response to its homelessness crisis tends to focus on neighborhoods like the Tenderloin, which he feels has been “pushing people into the Castro.”

But some unhoused people from neighborhoods like the Tenderloin say they come to the Castro because they feel safer there as LGBTQ+ people, KTVU reported.

That’s not a recent phenomenon: in 2009, the Journal of LGBT Youth published a study by Jen Reck, an Associate Professor of Sociology and Sexuality Studies at San Francisco State University, called “No One Likes Street Kids – Even in the Castro.”

The study focuses on homeless gay and transgender youth of color in San Francisco, particularly a group of teenagers who used the Castro as a place to seek safety and community.

“The Castro was especially important to these youth because, as gay and transgender homeless young people, other public and private places did not feel safe to them,” the study said.

But the youth featured in the study also reported facing harassment and hostility from community members in the Castro. They mentioned being treated like outsiders in a place that they observed to be “mostly inhabited by gay middle-class adult males,” and said that they felt left out of the community since “it is those who want or are able to spend money in the stores who can fully participate in the neighborhood culture.”

Today, gathering spaces in the Castro are still largely commercial, although there are a number of community organizations in the neighborhood that offer free housing navigation services to LGBTQ+ people. The specificity of these programs could be another reason unhoused people are drawn to the Castro from other parts of the city.

As it turns out, a few of these organizations – including LYRIC, a center for LGBTQ+ youth, and the SF LGBT Community Center, are part of the Castro Merchants Association.

Adam-Michael Royston, LYRIC’s vice president, says the association’s letter is not representative of all unhoused people in the Castro or the spirit of the neighborhood and its history.

“The Castro has been a beacon of hope for queer individuals for more than 30 years, and we have to continuously remember that we need to be inclusive and in community,” Royston said.

He added that as anti-transgender legislation takes off in other parts of the country, an influx of young people fleeing from conservative states have been making their way to San Francisco—and many of them end up in the Castro.

“The reason that so many of us ended up in the Castro is the same reason that so many of our youth end up here, too,” Royston said. “I think that letter, to youth fleeing the crises that they’re in, is not supportive.”

But business owners like Karraker believe that people who openly use drugs and experience public mental health crises are causing the neighborhood to suffer, regardless of their identity.

“No matter who it is, we can’t accept the idea that someone can come to the Castro, do drugs and be mentally ill to the point that they’re a threat to themselves or a threat to residents or tourists. This can’t continue,” Karraker said.

The post San Francisco enterprise house owners’ calls for decried by LGBTQ advocates appeared first on DAILY SAN FRANCISCO BAY NEWS.

A Craigslist rental posting in San Francisco caught our eye this week. What jumped out wasn’t the gorgeous exposed pine ceilings or “luxurious window dressings,” but the explosive price tag and the fact the posting tells folks not to bother applying if they don’t earn $432,000 a year.

The two-bedroom, 2.5-bath corner penthouse at 255 Berry St. in San Francisco’s Mission Bay doesn’t come cheap. Rent is a cool $12,000 a month, and the small print at the bottom of the ad simply states: “REQUIREMENTS: Credit: Good Standing Income: 3x the Rent”

255 Berry St., unit 708

Craigslist

While it’s not unheard of for landlords in San Francisco to demand proof of an income three times that of the rent, in this instance that calculates out as showing receipts for nearly half a million bucks a year, making one wonder whether the price tag is a little steep for a two-bed apartment.

So what can the new tenant expect after handing over $24,000 for the deposit and first month’s rent on the 2,435-square-foot pad? Not one but two fridges; a full home water filtration system; and a view of “water” (though it seems from the photos that the water in question is Mission Creek, not the bay.)

255 Berry St., unit 708

Craigslist

The apartment does offer some luxe finishings in the “impeccably appointed Bulthaup, Gaggenau, and SubZero kitchen,” radiantly heated floors, a “Spa like bathroom” and towel warmers. Redfin estimates that the unit is worth $2,887,899 (that’s $312,000 less than what it last sold for in 2019).

255 Berry St., unit 708

Craigslist

Find the full listing on Craigslist.

The post 2-bed San Francisco condo rental calls for $432,000 wage appeared first on DAILY SAN FRANCISCO BAY NEWS.

OAKLAND (CBS SF/AP) — The family of Erik Salgado, a 23-year-old unarmed man fatally shot in 2020 by California Highway Patrol officers, on Tuesday denounced a report from the district attorney saying there was not enough evidence to prosecute the officers.

Salgado was shot and killed by three members of CHP’s auto-theft task force in June of 2020 on Cherry Street in Oakland. On Monday, Alameda County District Attorney Nancy O’Malley publicly released the final report on the fatal shooting and said she agreed with its conclusion “that the evidence does not support criminal charges” against the officers.

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Salgado’s family and supporters gathered on the steps of the Rene C. Davidson Courthouse in Oakland. Attorney John Burris, who is moving ahead with a civil rights lawsuit over Salgado’s death, said there was no legal basis for the CHP officers to shoot into Salgado’s car.

“I think that report is a sham,” Burris said at the Tuesday news conference, adding he was disappointed but not surprised. “The decision is bittersweet because although disappointed with the decision it does allows us to go forward,”

The Salgado family said the officers involved in the shooting used excessive force, especially because Salgado was not armed. he added.

Salgado’s mother Felina Ramirez said through an interpreter Tuesday morning, “All I want is justice. I want justice for my son.”
She spoke through tears as she described never being able to see her son again.

Salgado’s sister, Amanda Majail-Blanco, says they’ve been waiting two years for answers – answers they say this report does not provide.

“We have to remember that this is an investigative report on cops investigating their own, and this shouldn’t be trusted,” said Majail-Blanco.

Prosecutors identified the officers involved as CHP Sgt. Richard Henderson and Officers Donald Saputa and Eric Hulbert. The CHP said at the time the officers were conducting a traffic stop on the Dodge sedan driven by Salgado when he rammed it against their patrols and they opened fire.

Salgado was struck at least a dozen times. His pregnant girlfriend was in the passenger seat and was wounded.

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Salgado was driving one of the Dodge Hellcats that was stolen a few nights earlier from a San Leandro car dealership during looting that happened around the George Floyd protests.

The report says when the officers pulled Salgado over and got out of their cars to talk to him, he tried to drive away, ramming their patrol vehicles twice. Thats’ when the officers opened fire, later saying they worried the Hellcat Salgado was driving could hit and kill one of the officers.

“The DA has said, ‘Well, I’m not really clear that that’s what happened, but right now I have nothing else to turn to.’ Why? Because there’s no video,” said LaDoris Cordell, a former judge and a former independent police auditor.

Cordell says video from body worn cameras would have taken away any doubt as to whether the shooting was justified. According to the DA, the cameras were not required by CHP policy.

“Had they had cameras on and activated, we wouldn’t be having this conversation, nor would the DA have any question about whether or not pressing charges, filing charges was the right thing to do,” says Cordell.

The 34 page report does leave the door open for criminal charges to be filed in the future “should more witnesses or evidence come forward.”

Katie Nielsen contributed to this report.

© Copyright 2022 CBS Broadcasting Inc. All Rights Reserved. The Associated Press and Bay City News contributed to this report.

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Students in California’s Oakland Unified School District are demanding that better coronavirus safety measures be taken or they will “go on strike” and skip school until their demands are met.

The group of students issued a “district-wide petition” earlier this week demanding that OUSD either switch to distance learning or KN-95 or N-95 masks for all students, two weekly PCR and rapid tests for each person distributed on campus. and “More outdoor places to eat safely when it rains.”

Over 1,200 students have signed the petition, which gives the school until January 17 to meet their demands, or the students will “go on strike” and stay out of school from January 18 until their demands are met.

The students will then protest in front of the district office building from January 21st.

CHICAGO TEACHERS UNION ENTERS MAYOR LIGHTFOOT’S COVID-19 SAFETY PROPOSAL: “ONE-WOMAN KAMIKAZE”

A disinfection station is placed in Catherine Fletcher’s first-grade classroom on the first day of partial in-person instruction at Garfield Elementary School in Oakland, Calif. (Jessica Christian/The San Francisco Chronicle via Getty Images).
((Jessica Christian/The San Francisco Chronicle via Getty Images))

Around 52,000 OUSD schools attended in the 2020-2021 school year, according to the district.

According to the document, the petition is addressed to OUSD Superintendent Kyla Johnson-Trammel and school board members.

“With this letter we would like to inform you that OUSD students do not feel comfortable going to school in light of the rising cases of COVID-19. There are many concerns about safety measures and how we can protect ourselves from COVID-19, particularly the highly contagious Omicron variant. We must return to distance learning until cases start to go back up,” the petition reads. “To ensure a safe learning environment, we request you to give us KN95/N95 masks and weekly PCR tests. If these requirements are not met, we will go on strike by not going to school. We will strike until we get what we need, rest assured.”

In part, students claim in-person study is unsafe due to increased coronavirus cases, no access to N-95 masks, no weekly tests and classroom desks.

BIDEN TO SEND MILLIONS OF COVID-19 TESTS TO SCHOOLS TO FOSTER REOPENING

Students at Carl B. Munck Elementary School while California Gov. Gavin Newsom visits their classroom on Wednesday, August 11, 2021 in Oakland, Calif. (Santiago Mejia/San Francisco Chronicle via Getty Images)
((Santiago Mejia/San Francisco Chronicle via Getty Images))

OUSD communications director John Sasaki provided a statement to Fox News Digital, saying the district is “aware” of the petition and is working to honor most of the students’ demands.

“We share students’ concerns about the rise in Omicron cases of COVID-19. This concern is the reason why we have distributed KN-95 and N-95 masks to all employees. We have also ordered enough KN-95 masks for all students. They will be distributed to students as they are delivered. We have ordered deliveries for new covered dining areas to dozens of schools, including new tables and shade structures, in some cases since last summer and have significantly slowed down their delivery. Where deliveries have been made, our staff are already installing these structures in schools and this process will continue as we receive more deliveries,” the statement said.

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A teacher instructs her second graders before California Gov. Gavin Newsom visits the classroom at Carl B. Munck Elementary School in Oakland, Calif. on Wednesday, August 11, 2021 (Santiago Mejia/San Francisco Chronicle via Getty Images).
((Santiago Mejia/San Francisco Chronicle via Getty Images))

In response to student concerns about coronavirus testing, the district said testing is available at ten hubs in the school district.

Sasaki also said the school district has received 200,000 KN-95 masks and is distributing them to individual schools.

He added that OUSD had been in contact with the students who created the petition and said discussions were continuing.

“We also run weekly pooled tests at primary schools and have bi-weekly drop-in tests for our secondary schools. We already meet or are in the process of meeting most of the demands mentioned in this petition. And we will continue to work to fulfill the rest in the coming weeks,” the statement continued.

The relocation of students within the district comes after teachers conducted a “sickout” on Jan. 7.

Students across the country are also demanding their school district implement better coronavirus safety policies.

A group of Chicago Public Schools (CPS) high school students are planning to go on strike Friday, demanding that the Chicago Public Schools issue coronavirus “assistance grants” to students and switch to a distance learning format for two weeks.

Fox News’ Audrey Conklin contributed to this report

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Asian Americans in the Bay Area are finding ways to fight back after violent attacksWith violent attacks on Asian Americans and islanders in the Pacific increasing, the community is finding ways to fight back. Betty Yu shows us how.

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