an older hotel property to new apartments can be intense , having to replace so much and convert the units from hotel rooms to a multifamily property .”
The pipeline of hotels-to-multifamily conversions may be widening in the wake of COVID-19 , but it was an established trend well before the virus upended daily life in 2020 . The Orlando area was flush with aging hotels during the real estate boom leading up to the Great Recession of 2008-2009 . Developers were converting hotels built in the 1970s and 1980s into condominiums — only to be caught in the cold when the bubble burst .
“ After that first wave of revitalization , things slowed down a bit ,” Pierce says . “ But investors are again looking at these types of possibilities . I ’ m expecting tourism to come back in a big way as vaccinations continue and we near herd immunity . People have been stuck inside for a year — and what ’ s one of the first places they ’ ll want to go ? Orlando has to be on top of that list with Disney World and Universal Studios .”
This adaptive reuse project highlights an interesting fold in the commercial real estate market as it continues to react to the COVID-19 pandemic . The conversion repurposes an outdated hospitality property to address expected demand for workforce housing by people in the travel and leisure industry . While such retrofitting may become more common in the near future , Site To Do Business can continue to deliver data and infographics for CRE professionals to identify and enable the repurposing and revitalizations of these sites .
Demographic data allowed the client a deeper understanding of the property ’ s surrounding area .
Nicholas Leider Senior content editor of Commercial Investment Real Estate
Contact him at nleider @ ccim . com .
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CIREMAGAZINE . COM COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE 41