NYC resumes large office-to-apartment conversion after structural issue

Crews have completed lifting sagging floors at the former Pfizer headquarters, marking progress on the largest office-to-apartment conversion in New York City history, HousingWire reported.

In July, a structural failure involving two buckled columns on the 21st floor caused evacuations across seven Midtown East blocks and led to citywide inspections and stop-work orders.

The incident raised concerns nationwide about the safety, cost, and design of converting older office buildings into housing, a strategy cities including New York, Washington, and Los Angeles are pursuing to increase housing supply more quickly than new construction.

New York City has embraced office-to-residential conversions as a key part of its housing affordability efforts, with Mayor Zohran Mamdani supporting a pipeline of about 12,000 units and more than 40 other conversions underway or planned, totaling over 14,000 new homes.

Since July, the city has issued 16 new building permits for such conversions, and state tax incentives offering property tax exemptions for rental conversions that include affordable units remain a significant driver, with a June 30, 2028 deadline for eligibility.

The structural engineer attributed the July failure to missing steel reinforcement rather than design flaws, and industry experts note ongoing activity as developers aim to meet tax break deadlines and convert remaining office stock.