Boston’s effort to convert office space to housing hit a milestone Thursday as more than 100 homes are currently under construction.
Developer Boston Pinnacle Properties began demolition Thursday on the building at 263 Summer St. in Fort Point, where it will create 77 homes.
The project is the fourth in the city’s Office to Residential Conversion Program to begin work and the largest under construction, with a total of 141 homes currently in progress and another 639 in the pipeline.
“That’s space for more than a thousand new residents, families, workers, students who will be ready to settle in and continue shaping our city,” Mayor Michelle Wu said during a news conference at the Summer Street site on Thursday.
The 60,000-square-foot building is also home to a historic sign bearing the name of Boston Wharf Co. that is considered a neighborhood landmark. It will be preserved as part of the redevelopment.
Meanwhile, tenants are expected to begin moving into 15 homes in a former office building at 281 Franklin Street at the end of the summer. And two other projects are underway at 129 Portland St., with 25 homes, and 615 Albany St., with 24 homes.
Since the city launched the program in October 2023, it has received 16 applications for projects that include 142 income-restricted and 780 total housing units across 21 buildings.
Construction on more than 100 additional units is expected to begin in the fall.
The program provides a 75% tax abatement for 29 years on vacant office spaces converted into residential space. The program was expanded earlier this year to include student and workforce housing.
“These conversions are not what was originally envisioned for the building and take a lot of work maneuvering all the small spaces, making sure that everything is set, changing the entire use so that these buildings can be revitalized and meet the city’s goals for housing,” Wu said.
In addition to supporting the city’s goal of producing more housing, the program was created to repurpose office space that was no longer needed as companies change their in-office policies after the pandemic.
Michael Nichols, president of the Downtown Boston Alliance, said this would return much-needed foot traffic to downtown businesses. It would also encourage workers to return to the office in the future.
“When the residents of this building look out this window, they’re going to see their offices,” he said. “Everybody like me in every part of the country is thinking about ‘How do we get people back in their offices more often?’ I’ll give you a hint. It’s not free coffee. … The number one metric across the United States for people returning to their office is the proximity they live to that job.”
Developers interested in converting office space to housing can apply to the program through the end of this year, with applications being reviewed and approved on a rolling basis.
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