From office to home: creating more housing through repurposing
The creation of additional housing through the targeted repurposing of commercial properties can also prove worthwhile from an investor's perspective. The asset management team of Zürcher Kantonalbank is currently implementing two representative repurposing projects in the city of Zurich. These projects will result in nearly 90 new flats.
Author: Markus Ott, Project Manager Real Estate, Zürcher Kantonalbank
In many submarkets, there is an oversupply of commercial spaces. Converting these spaces into residential units can not only enhance the profitability of a property but also contribute to the creation of additional housing.
However, the challenges of repurposing should not be underestimated. Transforming a property for residential use generally requires significantly higher investments, particularly for interior upgrades such as sanitary facilities. Moreover, repurposing often leads to a reduction in rentable space, as additional access and communal areas need to be created. A well-founded feasibility study and a profitability analysis form the basis for deciding whether or not to invest in a repurposing project.
Creating more housing – a look at two projects
The real estate team within the asset management division of Zürcher Kantonalbank is currently implementing two comprehensive renovation projects, including extensions and repurposing, in the city of Zurich for the Swisscanto Investment Foundation:
1st project for more housing: Badenerstrasse 156, Zurich-Aussersihl
The commercial property "Domahaus" is undergoing a complete renovation and will be converted into a mixed-use building.
In the rear section of the building, located on Engelstrasse, 43 small, high-standard rental flats are being created. To achieve this, the building will be stripped of its existing mansard roof and extended with a new penthouse floor. The section of the building facing Badenerstrasse will remain unchanged in its use as office space across all floors. Completion is scheduled for the second half of 2026. Learn more at: www.domahaus.ch/
2nd project for more housing: Badenerstrasse 587–589, Zurich-Altstetten
The listed former Electrolux building, previously used exclusively for commercial purposes, is being converted into a primarily residential property.
Approximately 45 new flats will be created. The property will be certified to the "Sustainable Construction Switzerland" (SNBS) standard at the "Silver" level. Completion is planned for the second half of 2027.
High sustainability standards
Together, these two projects will create nearly 90 new flats. Sustainability plays a key role in the development of these new residential units. After their comprehensive renovation, the properties will meet the highest energy efficiency standards. They will feature 100% renewable heat generation systems and will be equipped with photovoltaic panels on their roofs.
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