In a move that highlights one of the most compelling real estate trends post-pandemic, a developer has acquired a nearly vacant office property in Arlington, Virginia, signaling potential conversion to residential use. This isn’t just a single project — it’s part of a broader wave of office-to-residence adaptations across the D.C. metro area and beyond.

What’s Happening: The Arlington Office-to-Residential Deal

Recently, Quadrangle Development Corporation purchased a ~360,000 square-foot office building at 1320 N. Courthouse Road, Arlington. This property, originally a 1990s-era office site, had very low occupancy (≈18% leased) at the time of the sale. The building was marketed as a prime candidate for conversion into either residential or hotel use.

Meanwhile, Arlington is also seeing another major conversion from JBG Smith in the National Landing / Crystal City submarket. The county recently approved the adaptive reuse of two aging office towers (2100 & 2200 Crystal Drive) into a 195-unit apartment building and a 344-room hotel, with construction projected to begin by the end of 2025.

Further, in the Ballston area, Penzance received approval to convert Ballston One (4601 N. Fairfax Drive) — a seven-story office building — into 328 multifamily units, including studio, one- and two-bedroom apartments plus loft homes. These projects reflect that Arlington is actively embracing office-to-residential conversions under its new adaptive reuse policies.

The Broader Trend: Repurposing Underused Office Space

In cities across the U.S., developers and municipalities are responding to rising commercial vacancy by reimagining office buildings as homes. Arlington’s scenario is no exception — with office vacancy in the county hovering near 23.5%, conversion projects are already helping push that number downward.

This trend is especially visible in Arlington’s adoption of an adaptive reuse policy, which streamlines approval for office-to-residential (or hotel) conversions that meet certain criteria, such as minimal exterior changes or building re-fit flexibility. Without such policy support, many conversions struggle to pencil out due to demolition, infrastructure upgrades, and mechanical rework costs.

Another recent example: Penzance’s Ballston One conversion includes modern amenities, sustainable design features (green roof, bird-friendly glass), and commitments to local affordable housing programs. This demonstrates that developers see adaptive reuse not just as renovation, but a chance to deliver high-value housing aligned with community goals.

What It Could Mean for Arlington’s Housing & Urban Development

• Increased Housing Supply: These projects can inject hundreds of apartment units into Arlington’s tight housing inventory, easing pressure on rents and home prices.
• Reduced Office Surplus: Removing obsolete office stock helps shrink vacancy rates and improve the commercial real estate outlook.
• Neighborhood Revitalization: Conversions tend to enrich mixed-use districts — more residents means stronger demand for retail, public transit, and local services.
• Incentive Reliance: The success of these projects often hinges on incentives, zoning flexibility, and regulatory support from the county.
• Valuation & Risk: Some buildings may require extensive structural, mechanical, or plumbing upgrades. “Hard” conversions can erase profitability if not done thoughtfully.

Why Local Homeowners & Investors Should Watch This

If you own property in Arlington, National Landing, or other Northern Virginia submarkets, this conversion trend matters because it reshapes valuations, demand, and competition. As housing supply in strong locations increases, the market dynamics could shift — especially for sellers and future buyers.

And for those considering selling, you’ll want to keep more of your proceeds. That’s where our 1.5% Full-Service Listing Program comes in: you get full Realtor support and premium marketing at a fraction of traditional commission. Save thousands while staying competitive. (We offer this across Northern Virginia, including Arlington.)

FAQs

Why are Arlington developers converting offices to homes?

Office vacancy is high, lease rates are declining, and many older buildings are functionally obsolete for modern tenants. Converting to residential — with the support of county incentives and streamlined policies — presents a more stable, demand-driven use of underutilized space.

Will these conversions impact home values or rents nearby?

Yes — adding housing supply in desirable, transit-oriented locations can help moderate housing cost appreciation over time. Also, new residential users support local retail and amenities, which can make neighborhoods more attractive.

Are conversions financially viable long term?

It depends. The success of a conversion hinges on acquisition cost, structural adaptability, financing, regulatory incentives, and genuine demand for housing in that location. Arlington’s adaptive reuse framework is making the economics more favorable, but it’s still a complex play.