Los Angeles and Long Beach are experiencing a transformation in how buildings are used. As office vacancies rise and housing demand continues to grow, many property owners are asking a crucial question: Can my commercial property become housing?
The answer, increasingly, is yes. Under California’s evolving zoning and adaptive reuse programs, converting older office or retail spaces into residential or mixed-use communities has become a viable—and often profitable—strategy.
At Beach Front Property Management (BFPM), we help owners evaluate, plan, and manage these transitions. Whether it’s an office to residential conversion in Long Beach or a mixed-use conversion in Los Angeles, understanding the process and potential return is key to unlocking hidden property value.
Why Conversions Are Gaining Momentum
Several economic and regulatory shifts are driving the surge in commercial-to-residential conversions across LA County:
- Post-pandemic vacancies: Office and retail occupancy rates remain below pre-2020 levels, especially in Downtown LA and secondary corridors.
- Housing shortage: Los Angeles County faces a persistent housing gap exceeding 300,000 units.
- Zoning incentives: Cities like Long Beach and Los Angeles are streamlining adaptive reuse and mixed-use project approvals.
- State legislation: Recent California bills (such as AB 2011 and SB 6) allow qualifying commercial sites to convert to housing by right under specific conditions.
This alignment of market forces, legislation, and demand makes adaptive reuse in LA County an attractive option for owners ready to reposition their properties.
Understanding Zoning and Permitting
The foundation of any conversion project lies in zoning. Before considering design or financing, owners must confirm whether their property qualifies for residential or mixed-use use.
Key zoning insights:
- Adaptive reuse ordinances: Los Angeles’ original Adaptive Reuse Ordinance (ARO) has been expanded beyond Downtown, allowing office-to-housing conversions in many commercial corridors.
- Long Beach incentives: The city’s Downtown Plan and Midtown Specific Plan permit residential conversions for many underused office and retail properties.
- Permitting pathways: Conversions typically require change-of-use permits, seismic upgrades, and compliance with updated energy and accessibility standards.
- Parking adjustments: Many adaptive reuse projects qualify for reduced parking minimums or shared-parking arrangements.
BFPM collaborates with zoning consultants, architects, and city planners to ensure each project meets local and state guidelines from the start.
Financing and Incentives for Adaptive Reuse
Financing conversion projects often requires creative structuring, but multiple public and private options exist:
Funding and support mechanisms:
- State housing programs: California’s HCD and CalHFA offer low-interest loans for adaptive reuse projects that include affordable units.
- Local incentives: Both Los Angeles and Long Beach have density bonuses and fee reductions for housing conversions.
- Green financing: Energy-efficient retrofits can qualify for PACE (Property Assessed Clean Energy) funding.
- Private partnerships: Developers often partner with investors or real estate trusts to share conversion costs and accelerate timelines.
With the right structure, these financing tools can turn an idle commercial property into a steady income-producing multifamily or mixed-use asset.
Market Viability: What Makes a Property Convertible?
Not every building is ideal for conversion, but many underutilized assets can adapt successfully.
Ideal candidates include:
- Mid-rise office or retail buildings with large, open floorplates
- Structures built post-1970 with strong foundations and accessible utilities
- Properties near transit, universities, or employment hubs
- Assets located in downtown or emerging mixed-use districts
BFPM helps owners assess potential by analyzing construction feasibility, zoning flexibility, and projected rent performance. In high-demand areas like Long Beach, adaptive reuse often yields higher returns than office leasing alone.
How Conversions Benefit Property Owners
For landlords and investors, the shift from commercial to residential can deliver multiple long-term advantages:
- Higher occupancy and rent stability compared to struggling commercial sectors
- Increased property value through repositioning and modernization
- Broader financing options with access to housing-focused programs
- Community goodwill by contributing to local housing supply
- Operational efficiency through updated systems, energy retrofits, and modern amenities
In short, adaptive reuse allows owners to reimagine old assets for modern needs—while keeping their investments active and profitable.
BFPM’s Role in Adaptive Reuse Projects
As a full-service property management firm with deep regional experience, BFPM supports owners through every phase of conversion:
- Pre-development consulting: Feasibility analysis, zoning guidance, and budgeting.
- Vendor coordination: Partnerships with architects, contractors, and compliance specialists.
- Lease-up and marketing: Targeted campaigns to attract residents and mixed-use tenants.
- Ongoing management: Operations, maintenance, and financial reporting once the property is stabilized.
From Downtown Los Angeles to the Long Beach waterfront, our team has managed hundreds of multifamily and mixed-use assets—ensuring smooth transitions from concept to occupancy.
Across Southern California, adaptive reuse is redefining the future of urban real estate. What once stood as outdated office space can become vibrant housing, contributing to community revitalization and financial stability for owners.
At Beach Front Property Management (BFPM), we guide property owners through every step of the conversion process—from zoning analysis to stabilization—helping you transform underutilized assets into thriving residential communities.
Ready to explore the potential of your commercial property? Schedule a 15-minute consultation call to speak with a Long Beach and Los Angeles adaptive reuse expert today.
Trevor Henson
Trevor Henson is an experienced entrepreneur (10+ highly-successful start-ups) and property investor with a demonstrated history of building and leading teams in investment property management environments, maximizing returns for property owners, and optimizing properties through construction management and re-positioning. He…Learn more about how we can help. Customized solutions for large portfolios!