The real estate market is now on the verge of the next major transformation. It will fundamentally change and reshape major cities in North America and Europe. This is especially true in the United States, where towering office buildings have been the centerpiece of every metropolis.

But the COVID-19 pandemic has forever changed office work. The old days of thousands of office workers in glass skyscrapers are over. For good. Four years after the outbreak of the pandemic, hybrid structures of home office and traditional office work are becoming the dominant models in the US.

This trend will never be reversed. Office towers in business districts will never again reach full capacity. Last year, the vacancy rate for office real estate in the US reached a new all-time high of a staggering 19.6%. Practically every fifth office was unoccupied and empty. And these are just the unoccupied office spaces!

Pandemic and home office leave offices empty In addition, there are the rented office spaces that are now completely or partially unused. This trend in the real estate market is irreversible. It will be even more intensified in the future by the rise of Artificial Intelligence, which will make many office jobs redundant.

On the other hand, there is a shortage of around 3.2 million housing units in the US. Living space in many US cities is in short supply. As a result, many residents can no longer afford city life due to skyrocketing rental prices. I spend several months a year in New York City and I can sing you a song about rental prices in US cities.

We have a mismatch in our city centers, with too many offices and not enough housing. The solution: more and more American cities want to convert unused office space into housing. This presents a huge opportunity for savvy investors, as this transformation will take years to complete.

Historic transformation from offices to housing But converting office units into residential units in the US is not easy. There are numerous legal and bureaucratic requirements. For example, every apartment in the US must have at least one window that can be fully opened. However, many modern office buildings have large areas without windows or with glass walls that cannot be opened.

Therefore, older office buildings, built before the rise of air conditioning, are better suited for conversion to housing units. This allows for more residential units to be created from existing buildings. This makes the approximately 2,600 such office buildings in the US particularly attractive for real estate developers. However, these older office buildings require more extensive renovation and conversion, as they lack modern building infrastructure.

Conclusion: This situation creates a true gold mine for savvy investors. That’s why we have introduced the stock of an American specialist in housing infrastructure in our investment service Taipan. Their products may go unnoticed by residents of houses and apartments, but they are used daily and are indispensable.