As a recent heatwave has just come to an end, this June news roundup looks at the environmental impact of office real estate.
Obsolete Office Space
According to Sylvain Bessonneau, head of BâtiZoom (ADEME's Observatory for the Ecological Transition of Buildings), the tertiary sector accounts for 15% of France's total energy consumption.1
However, following the office market downturn that began in 20202, office vacancy has continued to rise. In 2024, vacant office space was estimated at more than 9 million square metres, out of a rental stock of 89 million square metres and a total office stock of 173 million square metres3, including 5.7 million square metres in the Île-de-France region.4
Converting vacant offices into residential housing therefore offers a solution not only to address office obsolescence but also to reduce new construction on undeveloped land and avoid demolition-and-reconstruction projects, which generally have a greater environmental impact. In 2022, office buildings already accounted for 53% of all activity-building refurbishment projects.5
Conversion as Part of Real Estate Value Strategies
However, office-to-residential conversion remains relatively limited. Between 2013 and 2021, these projects represented approximately 1,900 housing units per year, barely 3% of the target established by the 2010 Grand Paris law.
This limited momentum can largely be explained by significant structural barriers, including less favourable local taxation for residential developments, major technical constraints, and renovation costs that often exceed those of demolition and reconstruction.
Moreover, although the pandemic accelerated office vacancy, office assets remain attractive investments, and conversion is only one of several options available to property owners.
Indeed, a growing "flight to quality" trend can be observed, whereby companies reduce their office footprint while relocating to better-located districts and newer buildings. This trend has notably strengthened the attractiveness of Paris' Central Business District (CBD) and its surrounding areas.6
Office Conversion and Remote Work
Nevertheless, converting offices into housing can represent an attractive solution for areas more severely affected by the office market downturn, such as the northern suburbs of Paris and the peripheral districts surrounding La Défense.7
According to ADEME, the environmental benefits of office conversion are complemented by the positive impact of remote work on the climate. In particular, remote work helps reduce CO₂ emissions associated with commuting by car. However, this benefit remains relatively modest, as working from home also leads to increased residential heating, the purchase of office furniture and IT equipment, and in some cases, additional private travel. Consequently, remote work alone is not sufficient to significantly reduce overall CO₂ emissions.8
According to Sylvain Bessonneau, reducing the environmental footprint of buildings should also rely on four key levers:9
- Resource sufficiency
- Energy efficiency
- Waste reduction
- Energy decarbonisation
Conclusion
To reduce greenhouse gas emissions from office real estate, converting vacant office buildings into housing is becoming an increasingly widespread solution, although several significant barriers remain, including project profitability and high renovation costs.
Furthermore, residential buildings also have an environmental impact. A comprehensive real estate strategy is therefore required to reduce the environmental footprint of both office buildings and housing.
References
[1] Nolwenn Jaumouillé, "Rénovation, sobriété… Comment améliorer le bilan environnemental des immeubles français ?", The Conversation France, 18 May 2026.
[2] Félix Solé, "Concentration de la dynamique tertiaire : en Île-de-France, des territoires inégaux face à la crise du bureau", Note rapide Économie, No. 1059, L'Institut Paris Région, 28 May 2026.
[3] Emeline Cazi, "Plus de 9 millions de mètres carrés d’immobilier de bureau sont vides en France", Le Monde, 10 December 2024.
[4] DRIEAT, "Le marché francilien de l’immobilier de bureaux en 2022", published 13 February 2026 (updated 16 February 2026), accessed 20 April 2026.
[5] Emmanuel Trouillard, Clément Quatrain, Reconvertir les bureaux et bâtiments d'activités en logements : un potentiel encore sous-exploité, Note rapide Société-Habitat, No. 963, 2022.
[6] Félix Solé, "Concentration de la dynamique tertiaire : en Île-de-France, des territoires inégaux face à la crise du bureau", Note rapide Économie, No. 1059, L'Institut Paris Région, 28 May 2026.
[7] Ibid.
[8] Erwann Fangeat, "À quelles conditions le télétravail peut-il bénéficier à l’environnement ?", The Conversation France, 5 March 2026.
[9] Nolwenn Jaumouillé, "Rénovation, sobriété… Comment améliorer le bilan environnemental des immeubles français ?", The Conversation France, 18 May 2026.