Philadelphia is making strides in the post-pandemic era with its first major office-to-residential conversion project. Alterra Property Group is on track to complete the transformation of 1701 Market Street from an office building to vibrant new apartments by Memorial Day. This exciting development is part of a broader trend in many urban areas, where office spaces are being reimagined to meet the growing demand for residential living.

Key Features of the 1701 Market St. Conversion

Scheduled for completion in the spring, the 1701 Market conversion will offer 299 modern residential units, 190 parking spaces, and a luxurious rooftop pool. The project is set to attract residents who will enjoy the blend of contemporary living in a prime location.

The office-to-apartment transition is particularly noteworthy because the building's structure was already suitable for the conversion. This 1957-era building, originally home to the law firm Morgan Lewis, didn't require major structural changes to make it residential-friendly. The building's layout, with ample access to natural light and air, made it an ideal candidate for repurposing into living spaces. Alterra Property Group was able to begin the conversion process as soon as Morgan Lewis vacated the building, with no significant delays.

The Benefits of Office-to-Residential Conversions in Philadelphia

What makes this project even more significant is Philadelphia's supportive zoning laws and tax incentives for residential conversions, which have made the process smoother and more cost-effective than in other major cities. This is a big win for the local real estate market and a model for similar projects across the region.

Leasing for these newly converted apartments is set to begin in March, and it's expected that demand will be strong due to the building's prime location and modern amenities.

A New Trend in Urban Living

As more businesses adopt remote work models and commercial real estate faces challenges, the office-to-residential conversion trend is gaining momentum. The 1701 Market St. project showcases how older office buildings can be repurposed into desirable living spaces that meet the needs of today's urban dwellers.

For real estate investors, developers, and homebuyers in Philadelphia, this project is an exciting example of how the city is adapting to new demands and creating more housing opportunities. The success of Alterra Property Group’s conversion could inspire further transformations of vacant office buildings into thriving residential communities.

Stay tuned for updates on leasing availability and more real estate trends in Philadelphia.

Source: Philadelphia Inquirer, February 3, 2025