Manhattan is experiencing a surge in office-to-residential conversions, boosting the rental supply. With the 421a tax break expiring in 2022, new construction slowed, but conversions like Vanbarton Group’s 77 Water Street and Bushburg Properties’ 80 Pine Street are adding thousands of rental units. By 2028, around 7,500 apartments are expected from these projects, making up over 40% of new rentals.

This trend is crucial given Manhattan’s housing shortage, although issues remain, such as wage requirements and rent restrictions that could deter some developers. Notably, the former Pfizer ...