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ARTICLE · 30 JUNE 2025

Are Condos A Solution To Underperforming Commercial Properties?

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Commercial real estate is facing challenging con- ditions. Between ongoing high office vacancy rates, ever- expanding e-commerce and volatile trade markets, owners of underperforming commercial properties...

United StatesReal Estate and Construction
Shannon M. Mandich
Shannon M. Mandich
Brooke Miller
Brooke Miller
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Commercial real estate is facing challenging con- ditions. Between ongoing high office vacancy rates, ever- expanding e-commerce and volatile trade markets, owners of underperforming commercial properties, including office, retail and light industrial spaces, are considering whether commer- cial condominium conversions to divide their larger rental assets into smaller, saleable units may offer a solution.

While it might sound like a quick fix, depending on the local sub- division process, site conditions and other legal restrictions, com- mercial condominium conver- sions can face roadblocks. Here, we explore the benefits, process, pitfalls and some strategies to make commercial condominium conversions work for you.

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