Metro Phoenix sees surge in adaptive reuse apartments

Phoenix is rapidly converting vacant hotels and underused offices into rentals, with 2,463 adaptive reuse apartments planned, mostly from office spaces. Nationally, 181,000 adaptive reuse apartments are in development, a 19% increase from last year. In 2024, nearly 25,000 units were completed, a 50% rise from 2023, with hotels leading conversions and offices accounting for about a quarter of new units.