Los Angeles is known for being one of the top markets for apartment conversion projects. In other words, dated or out-of-use buildings in Los Angeles are often transformed into apartment units—a highly in-demand asset class in the market. Following the pandemic, which has substantially hampered hotel revenues, hotel properties could become the next favorite asset class for apartment conversion projects.

"Given today's circumstances and travel restrictions, hotels might make a comeback as the favorite building type to be transformed. And, with work environments changing constantly, office buildings could become the next favorite building type to convert," Alexandra Ciuntu of Yardi's Rent Café tells GlobeSt.com.

Following the pandemic, there will likely be a trend toward adaptive reuse projects rather than new construction, particularly under pressure to bring more apartment units to market quickly. "Adaptive reuse is a great way to conserve historic value and development resources in one go. Plus, minimizing new construction has become an integral part of building sustainability," says Ciuntu. "Beyond reimagining an existing building, developers have the chance of giving back and beautifying communities through conversions."