Partial Office-to-Residential Conversions and Financing: The Case for a Floor-by-Floor Approach

The floor-by-floor approach to partial office-to-residential conversions highlights a nuanced financing strategy that middle-market credit professionals should watch closely. As demand shifts and asset reuse becomes critical, lenders and investors must assess risk and cash flow on a segmented basis rather than treating conversions as all-or-nothing projects. This method could unlock new opportunities for structured financing and credit underwriting in a market adapting to evolving commercial real estate dynamics.