Why You Shouldn't Convert Existing Office Buildings

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Whether or not a landlord wants to sell at a reasonable price is another issue entirely. And that idea of what the existing value is can really impact whether or not people think these projects are going to work. If they're overvaluing the asset right now, then that kind of costs drags on the pro former.

Industry experts agree: Converting unused office towers to residential buildings is great in theory, but a moonshot to pull off. Despite the grab bag of obstacles that make these projects so difficult, the developer and office landlord Hines is getting in on the action. The Real Deal breaks down how Hines' Salt Lake City project pencils out and what it signals about the right building for the job.

Guests: Steven Paynter, studio director at Gensler's Toronto office; Dusty Harris, senior managing director of Hines' Utah and Oregon investment activity.