Tax And Other Considerations: Commercial-To-Multifamily Conversions
In his latest piece in Forbes, Dave McGuire discusses the rising office vacancy rates since the pandemic, leading to economic challenges in urban areas, and the growing trend of converting vacant office spaces into multifamily housing.
Unfortunately, office buildings can present challenges for multifamily conversions since they often lack the necessary plumbing, heating and individual HVAC requirements for residential properties. Offices typically use centralized HVAC systems, while multifamily properties require individual controls. This problem can be resolved but may come at a high cost. Despite the significant challenges and costs associated with these conversions, developers are encouraged to maximize available tax benefits and deductions to make these projects financially viable.
David McGuire is a leading expert on cost segregation, fixed assets and depreciation law and a co-founder of McGuire Sponsel. McGuire continues to grow McGuire Sponsel’s national presence in cost segregation and depreciation.
He is the primary resource for alliance firms in regards to how tax law affects depreciation. His knowledge in determining asset costs and classifications has held up against IRS scrutiny and has built the firm into a trusted industry resource.