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Office to Residential Conversion

Portland’s Central City was hard hit during the pandemic and its recovery has been mixed. One of the biggest challenges is a record-high office vacancy rate. This is an issue in the downtown core, Old Town, and other sub-districts. The prevalence of hybrid work impacts areas of the Central City differently given each district’s mix of business and industry. In response to these challenges, the City of Portland and Prosper Portland, along with public and private partners, are moving forward with an initiative to convert vacant office space to residential uses.

What is this program for?

In partnership with the Portland Clean Energy Community Benefits Fund (PCEF), Prosper Portland has launched a Central City Building Conversion – Embodied Carbon Pilot Loan program that provides funding for residential-to-office conversion projects. These projects will:

  • provide opportunities for additional, much-needed housing with access to excellent transit service;
  • add to the vibrancy of the central city at all hours, and;
  • provide support for downtown small businesses, restaurants, and retailers.

Advance Portland, the city’s plan for inclusive economic growth, recommends policy considerations for the Central City, including incentives to support vacant commercial to residential conversions. An incentive program to convert offices into residential spaces is needed to facilitate meaningful adaptive reuse, especially considering the limited number of buildings that meet the conversion program requirements.

  • Office to Residential Conversion Feasibility Study

    In 2023 Prosper Portland commissioned a study led by ECOnorthwest and Gensler to understand the feasibility of office to residential conversion across the Central City. The nature of office to residential conversion is that unique building characteristics have a large influence on suitability and ultimately financial feasibility. ECOnorthwest conducted market research to determine expected market rents for a converted office, then tested the financial feasibility using a pro forma analysis. To provide accurate assumptions in the financial analysis, a team of technical experts was engaged as sub-contractors. Gensler produced test fits for each of the buildings, KPFF and Glumac evaluated the mechanical, electrical, plumbing, and seismic costs, and Turner Construction produced cost estimates.

    Summary Memo

    Conversion Study

  • Program Updates

    We are excited to receive so much interest in the Portland Clean Energy Community Benefits Fund (PCEF) Central City Building Conversion – Embodied Carbon Pilot Loan approved by our Board on October 8, 2025. With limited initial funding, we are working with development ready pilot projects. While the first round of funding is largely committed, we are in discussions with PCEF about an additional allocation. If you’re interested in receiving an update, please provide your information below and we’ll follow up with you regarding next steps.

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Connect with us

If you have questions, please contact Brian Moore at mooreb@prosperportland.us or 503-823-3121