Unlocking Housing Potential in NYC: Duke Properties Champions Smart Conversions with Sensible Policy

A Rare Window for Housing Innovation in NYC

After years of limited housing inventory and rising demand, New York City has found itself with an unexpected opportunity: converting underused office buildings into modern housing. And Albert Dweck, CEO of Duke Properties, believes it’s exactly the kind of creative solution the city needs right now.

“With so many Class B and C offices sitting empty, we have a unique chance to reimagine our urban landscape while addressing the housing crisis,” says Dweck. “But to succeed, we need a policy environment that supports innovation — not one that dampens it.”

Conversions: A Fast-Track to Needed Supply

Office-to-residential conversions have proven to be faster, more cost-efficient, and less disruptive than ground-up development. In a city where construction timelines and approvals often stretch for years, conversions offer a path to rapidly increase livable housing units, especially in well-connected urban cores.

“Conversions are efficient, sustainable, and targeted,” Dweck explains. “We can bring new homes to market in under two years while revitalizing buildings that might otherwise sit idle for a decade.”

The Policy Challenge: Support Needed to Keep Projects Viable

While many developers, including institutional investors and family offices, are stepping up to take on conversion projects, proposed blanket rent-freeze mandates could introduce unforeseen challenges.

For projects leveraging essential tax incentives that require 25% of units to be rent-stabilized, a fixed rent freeze could shrink returns, increase financing risk, and stall progress on new supply.

“We fully support affordability — that’s part of our mission,” Dweck states. “But a one-size-fits-all rent freeze on newly created units might discourage the very investment we need to unlock those homes.”

Sensible Policy: Balanced Policy Can Deliver Both Equity and Growth

Duke Properties encourages city leaders to distinguish between legacy rent-stabilized units and newly created housing stock — particularly those delivered through conversion projects that require significant structural investment.

“There’s room for affordability and innovation to coexist,” Dweck emphasizes. “By crafting policy that’s responsive and thoughtful — like targeted exemptions or tiered rent frameworks — we can ensure these projects remain attractive while still delivering on our shared equity goals.”

Looking Ahead: New York’s Moment to Lead

With 16% of New York’s office space sitting vacant and housing vacancies at historic lows, the case for action is urgent. But Dweck is optimistic:

“This is New York’s moment to lead with courage and clarity. If we do it right, we can turn unused space into vibrant homes, stimulate economic growth, and make our city more livable for all.”