One major challenge for leaders at this point: no single solution will suit all CBDs. Far from it, as the effects of the pandemic were not distributed evenly.

Of pandemic-induced office vacancy in the world’s largest commercial property markets, 74% has come from North America, compared to 15% in Europe and 11% in Asia-Pacific.

North American markets also are the most oversupplied in terms of space built between 1960 and 2010 relative to current demand levels, catalyzing 11.3 million square meters of occupancy growth in new supply across the US since early 2020. On the other hand, more than 15% of supply has been delivered recently or is under construction in every major Asia-Pacific market. In much of Europe, this figure ranges from 5% to 20%.

The immediate result of this divergence is that city leaders and large property owners in North America are more aggressively converting obsolete offices into other property types that can boost residential and visitor density.

To that end, making conversions faster and less expensive forms the basis of the White House’s affordable housing playbook released in late 2023. Federal agencies such as the Department of Housing and Urban Development are emphasizing the availability of grant programs worth $45 billion to turn obsolete properties into affordable housing, with the ability to take advantage of complementary tax credits for transit accessibility and low - or zero-carbon - retrofitting to accelerate the decarbonization of older buildings.