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More buildings are being converted into apartments in the U.S. than ever before, and it’s not just old offices that are finding new use. After the COVID-19 pandemic disrupted relocation patterns and work arrangements nationwide, suddenly vacant city office space seemed like prime real estate for housing. But it’s actually hotels more than any other building type that are driving the spike in conversions now: Hotels made up 37% of all apartment conversions in 2024, followed by offices at 24%, industrial at 19%, schools at 8%, and other at 12%. New sourcing to meet newfound growth This shift in sourcing comes at a time when a record number of converted apartments are hitting the market. 24,735 such units were completed in 2024, according to a new report from the property management and apartment listing site Rent Cafe. That’s up about 50% from 2023, when 16,513 apartments were converted. That trend is expected to continue. There are currently 181,000 apartment conversions currently in development, according to the report. While office-to-apartment conversions are on the rise, some office buildings present design challenges that stand in the way of adaptive reuse, like utilities that aren’t wired for multifamily residential use, or a lack of windows, which would fail to meet residential codes for bedrooms. The process for redesigning a hotel into a residential space is much more streamlined by comparison, as it already has a base infrastructure of single unit residences, much like the apartment complex it will become. That similarity suggests that converting the space would require less rewiring, less HV/AC installation, less tear downs, and less time and money for the developer. Hotels under pressure The rise in hotel-to-apartment conversion is driven less by design, though, than by economic factors. The American Hotel & Lodging Association (AHLA) said in its 2025 report that U.S. hotel industry is experiencing a period of stagnation because of operating costs that are growing faster than related revenue as travel patterns normalize post-pandemic. Some hotel owners, then, are choosing to sell. According to the Rent Cafe report, most of the hotels that converted were more vulnerable to market uncertainty. Hotels that cater to the wealthy are doing just fine, though, which makes sense considering the K-shaped recovery from the pandemic recession. People who can’t afford their rent can’t afford to travel either, and the buildings that once made up the infrastructure of these industries are adapting to the times. Hotels that once catered to middle-class travelers are now making a play for middle-class renters.
Category:
E-Commerce
One of the most striking aspects of Sarah Wynn-Williamss best-selling memoir, Careless People, about her years at Meta, is the way she portrays Sheryl Sandberg. Contrary to Sandbergs carefully crafted public image as a levelheaded advocate for working women and their families, she is shown to be narcissistic, mercurial, and hypocritical. Whether you see Wynn-Williams’s book as an important exposé of Big Tech culture or a hit job by a disgruntled former employee, its hard to escape the sense that Sandbergs public persona was more fantasy than reality. The image of a fabulously wealthy executive and doting mother living her best life every hour of the day was always a bit over the top. There is clearly something unhealthy about the idealized images that we are constantly inundated with, as well as those equally curated versions that so many feel compelled to post on social media. Beyond the obvious psychological toll, the pressure to project constant perfection undermines the gritty, unglamorous work required to perform at a high level. The value of hacking away Were all familiar with the eureka moment from the movies. The hero, when confronted with a seemingly insurmountable challenge, suddenly stops and has a moment of epiphany. He slams his fist on the tablehe’s finally got it. The camera pushes in tight on his determined face as a montage depicting a frenzy of activity plays out, bringing the plan to life. As anybody who is involved with creative work will tell you, thats a myth. Things dont really work that way. Sometimes you get hit with an idea while driving your car or something, and might stop to write down a few notes. But most of the time youre just hacking away, working and reworking ideas, most of which dont amount to much. Kevin Ashton, the tremendously creative engineer who came up with the idea for RFID chips, put it well in his book, How to Fly a Horse: Creation is a long journey, he wrote, where most turns are wrong and most ends are dead. The most important thing creators do is work. The most important thing they dont do is quit. One of the most useful things anybody ever told me about creativity is that you have to let the muse know that youre serious. You have to be there, every day, doing the crap work until you come across something worthwhile. Most people never do that, because crap takes courage. You have to dare to be crap. The power of doing the minimum One of the best ideas Ive ever had came to me at the end of college. I had been a Division I wrestler, so I never had much trouble staying in shape. But now I was embarking on a professional life that I knew would involve a lot of sitting in an office. I had seen friends who went completely to pot after just a few years. The idea I had was to commit to working out five minutes a daywithout fail. Of course, five minutes a day wouldnt keep me in shape, but it would make sure that I showed up, and thats half the battle. I later learned that Jake Tapper has a similar idea about writing. He commits to writing 15 minutes per day, and hes written a number of bestsellers. The truth is that people dont get out of shape because they go to the gym and dont work out hard enough. They get out of shape because things happen in their lives and they dont go for two weeks and that somehow turns into 10 years. The same is true about writing, learning a language, or almost anything else: Do the minimum and the maximum will take care of itself. Of course, in our hyper-optimized theatrical world, we rarely hear that basic truth. Our social media feeds are full of gonzo workouts, wacky diets, and secrets that will unlock a more successful, fulfilling life. But the truth is that while going extreme might feel rewarding for a few weeks or even a few months, in the long run its consistency that matters. So dont fall for internet hype and FOMO. If you want to achieve something meaningful, think about whats the minimum you can commit to and start there. The more you lower the activation energy, the more consistently youll be able to try new things and push the envelope. Sometimes you need to not be productive Like most people, I occasionally get blocked, which is incredibly frustrating. While sometimes my mind seems to be positively buzzing with ideas, other times I either feel that my brain is stuck in molasses or Im fixated on something going on in my life and no new ideas seem to be able to work their way in. In both cases, Ive found that the best way to get over these difficult periods is to not worry about them and do my best to relax and quiet my mind. Thats more difficult than it sounds, because being blocked can be maddening. But sometimes the most productive thing you can do is to recognize when to stop struggling. My friend Lu Ann Cahn wrote a great book about this called I Dare Me. Hitting middle age and feeling stuck in her job as an Emmy-winning TV news anchor, she set out on a mission to do something new every day for a year. What she found was the simple act of doing something differenteven just taking a different route to workrewires and refreshes your brain. So when youre feeling stuck on a project, the best thing to do is often to step away and do something else, at least for a few hours. Meet a friend for coffee, go to the gym, read a book, watch a movie, or do whatever will help you take your mind off of what youre doing. Ive found that once I stop trying to force ideas, they can start flowing again. Learning to muddle through You dont have to go far to fid someone advising you to live your perfect life: from self-help books and TED Talks urging us to find our why to people posting pictures of their spouses and children on social media while praising the perfection and nonstop joy their loved ones bring themand then, strangely enough, announcing their divorce six months later. Compare that to how best-selling author and TV anchor Fareed Zakaria describes his work: Thinking and writing are inextricably intertwined, he says. When I begin to write, I realize that my thoughts are usually a jumble of half-baked, incoherent impulses strung together with gaping logical holes between them. Thats much closer to reality. Whether its writing a book or starting a business, you start off with an idea and that idea is always wrong. Sometimes youre off by a little, and sometimes youre off by a lot, but its always wrong. Your job isn’t to be right, but to embark on a Bayesian process of becoming less wrong over time. Eventually, you get it to the point that it can impact the world. The truth is that the world is a messy place. Marriages are hard. Kids are frustrating. Even stories of incredible success often contain within them tales of heartbreaking desperation. Thats why we need to look at the carefully cultivated images of perfection with a jaded eye, because they will distract us from the necessary struggles required to do something worthwhile. Not all who wander are lost.
Category:
E-Commerce
Costco is famously adored by its fans, and its leadership wants the discount big-box chain to remain beloved. Costco co-founder and former CEO James Sinegal so fervently believes in keeping customers happy that hes driven to profanity to express the strength of his feelings. You cant say People are our most important product, and hang signs all over the place that say People are our most important product, and then treat them like shit. Your customers or your suppliers are going to see that you dont really mean it, he recently told an interviewer. Which is why a recent policy change by the retailer is so fascinating. Starting this month, Costco began enforcing a new benefit for executive tier members, who pay $130 annually rather than the $65 for Gold or Businesses membership. Those who pay extra now get an extra hour to shop in relative peace in the morning (except for Saturdays, when they only get an extra half hour), separate from the hoi polloi at the chains often crowded stores. It might sound like a small change, but it illustrates not only a key choice business leaders committed to customer happiness, like Sinegal, have to make but also something fascinating about the direction the U.S. economy seems to be heading as a whole. The plus sides of tiered pricing From a straight revenue maximization perspective, the new rules make sense. Executive tier members make up 47 percent of Costco shoppers but drive 73 percent of its revenue. Add to that fierce competition from the likes of Sams Club and BJs, and locking in more customers with a premium membership is a clear economic win. Costcos early-access benefit for Executive Members represents more than a customer perkits a smart application of behavioral economics. By leveraging exclusivity and loss aversion, Costco creates perceived value that can justify the $65 premium between membership tiers, explains Fortune. Industry analysts suggest the move could accelerate Executive Membership conversions. And obviously, the new perks delight many premium members. It is such a relaxing shopping environment and not survival of the fittest, enthused one Reddit user. I could make a return without waiting in the giant line and then went and spent $200 elsewhere. Win, win! wrote another. Not everyone is happy with Costcos new policy But for every pleased premium member, there is another shopper unwilling and unable to pay double to shop at Costco. They are not so pleased. I immediately canceled my membership for a 100 percent refund. The company breached the terms in which I took out the membership. I burned up a gallon of gas to get there at what was the normal time, had trouble walking and no consideration. I was told to wait 1/2 hour. Ill stick with BJs and continue to be treated with respect, grumbled one on Facebook. Some Costco workers also complained about the move to open earlier to cater to premium members. We struggle to get open [at] 9:45. I can imagine its going to be fun every morning in merchandising, reads one representative Reddit comment. As Sinegal himself observed, people notice when you dont treat them with respect. For some employees and customers, a move to tiered membership clearly treats some people with more respect than others. Goodbye middle class, hello premium pricing Only time will tell whether Costco loses more customers like the irate Facebook poster above than it gains from new premium memberships. But other business leaders considering offering premium services that make the experience of their product relatively worse for other customers should be mindful of these tradeoffs. Its a decision that more and more leaders seem to be weighing. As management consultant Daniel Currell noted in a fascinating essay in The New York Times on the rise of pricey upgrades at Disney theme parks, companies are increasingly looking for ways to cater toand extract more profit fromtheir most upmarket customers. More and better data and AI assistance enable companies to target and reach these customers. But the real driving force behind the rising popularity of premium pricing is a fundamental shift in the American economy. That middle class has so eroded in size and in purchasing powerand the wealth of our top earners has so explodedthat Americas most important market today is its affluent, he writes. What Costcos new policy says about the economy Currell observes that while a lot of core economic data, like unemployment and household income levels, have looked good on paper over the last few years, consumers have reported feeling incredibly negative. Its a puzzle, he says, that may be partially explained by tiered pricing like Costcos new policy. People notice when you treat them like shit. And watching others with more resources literally skip to the front of the queue certainly makes many people feel like shit. It might be good short-term business strategy to say the hell with it, let them stew, and pocket the proceeds. The question of what this bitter dynamic will do to a businessand a nationlonger term remains to be seen. Jessica Stillman This article originally appeared on Fast Companys sister publication, Inc. Inc. is the voice of the American entrepreneur. We inspire, inform, and document the most fascinating people in business: the risk-takers, the innovators, and the ultra-driven go-getters that represent the most dynamic force in the American economy.
Category:
E-Commerce
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