on Jun 02, 2025

HR&A Shares Insights on Commercial Affordability and Office-to-Residential Conversions at ULI Spring Meeting

HR&A Advisors was honored to contribute to two timely and forward-looking conversations at this year’s Urban Land Institute (ULI) Spring Meeting, which were focused on helping shape the national dialogue around resilient urban development and adaptive reuse.

 

HR&A curated and participated in the panel “Building Business, Building Communities: The Value of Commercial Affordability,” which explored the growing crisis of commercial displacement across North America—particularly in communities of color. Moderated by HR&A Senior Advisor Marilynn Davis, the conversation examined the structural factors behind rising commercial rents and shrinking opportunities for small, community-serving businesses. The panel offered a range of proven solutions, including business incubator programs, commercial affordability land trusts, cooperative ownership initiatives, subsidized rents, and master lease/sublease models that enable flexible, affordable tenancy.

 

Panelists brought diverse expertise to the conversation. Sulin Carling, Principal at HR&A, shared valuable insights into our work in Manhattan’s Chinatown and the development of our master plan for Pike Place Market. Kara Lively, Director of Economic Development at Atlanta BeltLine Inc., discussed the unintended consequences of BeltLine-driven growth and the targeted strategies being implemented to preserve affordability—many of which stem from a roadmap developed in partnership with HR&A. Paul Binder, Co-Director at Denver’s Center for Community Wealth-Building, offered a grassroots perspective on the impact of commercial displacement and the promise of cooperative models. Heela Omarkhail, Vice President of Social Impact at The Daniels Corporation, shared how Toronto’s Regent Park redevelopment has made space for locally owned businesses as part of a larger inclusive growth strategy.

 

In a second session, HR&A’s Kate Collignon joined Nathan Bossie (HUD), Matt Bedsole (City of Atlanta), and moderator Steven Paynter (Gensler) to present early findings from a HUD-sponsored study on office-to-residential conversions in six cities: Houston, Los Angeles, Pittsburgh, St. Louis, Stamford, and Winston-Salem. As cities seek new ways to activate downtowns, address housing shortages, and reduce commercial vacancies, conversion of underused office space has emerged as a compelling—but often complex—solution.

 

Panelists emphasized that while the potential of office-to-residential conversions is clear, financial feasibility remains a significant hurdle, especially in cities with weaker housing markets or more challenging building stock. The study found that targeted incentives—from streamlined permitting processes to direct financial tools—can help make projects viable. However, the most consistent driver of success is strong demand for downtown living. Investments that improve urban livability—such as enhanced public spaces, cultural amenities, and safety—are often as important as building-level subsidies in making these conversions feasible.

 

Thank you to our fellow panelists and attendees, and we look forward to continuing these important conversations.