(Phoenix Among Cities Leading The National Office Conversion Trend — May 2, 2026)
Phoenix’s office vacancy rate hit 22.8% in the first quarter of 2026, pushing more building owners to consider converting obsolete properties to residential use, with roughly 1,500 apartment units now in the local conversion pipeline. The city ranks 13th nationally for planned office-to-apartment units, trailing New York City’s 16,400-unit conversion backlog but reflecting a broader national trend that has grown the conversion pipeline to 90,300 units, up 28% from a year earlier. Notable Phoenix projects include One Camelback, which could open by year’s end, and a 376-unit conversion near the former Metrocenter Mall site.
