Paris La Défense Plans to Convert Up to a Fifth of Offices into Apartments

Paris La Défense plans to convert up to a fifth of office buildings into housing, joining Washington DC in turning empty spaces into apartments as commercial demand drops.

The post-pandemic shift toward remote and hybrid work left business districts facing unprecedented vacancy rates, forcing city planners and developers to rethink downtown layouts. In Paris, central business districts experienced occupancy declines reaching 20-30% in certain sectors. La Défense registered a vacancy rate of 14-15%, according to Paris La Défense CEO Pierre-Yves Guice.

Ludovic Delaisse, CEO of Colliers France, heading the French arm of the Canadian real estate business Colliers, said that demand for office space in Paris fell by almost a third over the past five to six years.

Across metropolitan regions, municipal governments face acute housing affordability crises and insufficient residential inventory. Conversion projects offered economically viable pathways by transforming liabilities into community assets while expanding housing supply.

Washington DC and New York City implemented modified zoning regulations and tax cuts. A report last year tracked conversion pipelines across major American cities, finding 8,310 flats in New York, 6,533 in Washington, 4,322 in Los Angeles, and 3,606 in Chicago.

Tax cuts and eased planning rules for converting offices into apartments led to a continuing boom in the United Kingdom. A report last year by property firm Knight Frank said that the number of such projects in London were 60% higher than pre-Covid levels.

Developers face technical obstacles including structural requirements and spatial configurations. Original office designs feature deep floor plates lacking natural light, low ceilings, and the need for extensive plumbing, electrical, and HVAC modifications.

“Just how the government deals with the tax question will decide whether France will be able to convert 2% of its vacant offices or 18 to 23%” Roland Cubin warned, explaining that transformed structures are classed not as old buildings that have been changed, but as new buildings subject to regulatory demands regarding car parking spaces, wheelchair access, and fire safety.