Philadelphia has emerged as the fastest-growing market for office-to-residential conversions in the United States.

Over the past year, the city’s conversion pipeline expanded from 1,200 units to 2,697 units. This marks a 119% increase between February 2025 and February 2026, according to data from RentCafe.

While larger markets still lead in total unit counts, Philadelphia recorded the most significant growth rate nationwide. Therefore, the city continues to gain traction as a leader in adaptive reuse.

Several high-profile projects are driving this surge. Most notably, the historic Wanamaker Building is undergoing a major transformation. Developers are converting the 115-year-old property into 622 residential units.

TF Cornerstone acquired the office portion of the building last summer and has already begun construction. The project is expected to be completed by mid-2028.

In addition, Centre Square is under contract for sale to local developers. Plans could introduce up to 500 residential units across the two-tower property located next to City Hall.

PMC Property Group is also advancing conversion activity. The firm secured zoning approvals to convert a portion of 1801 Market Street, also known as Ten Penn Center, into 273 apartments. Meanwhile, the remaining office space will continue to operate.

Further momentum is coming from Dwight City Group, which received permits to redevelop former Hahnemann University Hospital properties into a combined 446 residential units.

Overall, these projects reflect a broader shift in Philadelphia’s real estate landscape. As office demand evolves, developers are repositioning underutilized assets into residential opportunities. In turn, office-to-apartment conversions are playing a key role in revitalizing the city’s urban core and expanding housing supply.