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."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.