July 03, 2025

Quick Insights to Start Your Week

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Welcome to this week’s AEC (Architecture, Engineering & Construction) huddle – your go-to source for the latest trends, industry insights, and tools shaping the industry. Let’s dive in! đŸ”„

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Older buildings face demolition as office conversions accelerate, reports say.

High vacancy rates are driving a surge in office conversions across the U.S., as building owners seek to repurpose underutilized space and address housing shortages. According to Yardi’s June 2025 National Office Report, the average national vacancy rate remained at 19.4% in May—down 30 basis points from April but up 160 basis points year-over-year. CBRE highlights that conversions and demolitions will reduce U.S. office inventory more than new supply additions this year, aiding market recovery.

Key Insights:

  • Office conversions are accelerating, with 12.8 million square feet expected to be repurposed this year, compared to just 12.7 million new office square feet.
  • Demolitions account for over half of older buildings (built in the 1970s–1980s) due to structural incompatibilities with multifamily housing.
  • Multifamily conversions dominate, making up ~70% of planned projects, driven by stronger market fundamentals and city incentives.
  • Hotels now lead non-residential conversions, surpassing life science uses, which declined from pandemic-era peaks.

Regional Spotlight:

  • Manhattan leads with 10.3 million square feet of conversion projects, aided by NYC’s “City of Yes for Housing Opportunity” zoning reforms.
  • Boston and Massachusetts are rolling out programs like the Commercial Conversion Initiative, offering $1 million in planning funds and tax incentives.
  • San Francisco is streamlining conversions via tax waivers and a downtown revitalization district.

Cities are increasingly incentivizing conversions to offset declining office values, as noted by Peter Kolaczynski of CommercialEdge: “It’s up to cities to reduce red tape and maximize potential.”

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A Drip-Free, Through-Window Heat Pump

Midea’s Packaged Window Heat Pump is a game-changer for multi-family homes, offering both cooling and heating without the hassle of dripping condensate. This through-window unit, which looks like a standard AC system, is engineered for efficiency and ease. Its self-supported gas shock hinges let you slide it through the window from the inside and lower it into place—no need for ladders or complicated installations. Unlike traditional window units, it doesn’t obstruct the window opening, making it a sleek, space-saving solution.

The real innovation lies in its condensate management system. Instead of dripping water down walls, Midea uses a small mister to gather condensate, pressurize it, and atomize it into a fine spray. This eliminates the risk of water damage in tall buildings and keeps your space dry. During heating, the unit even captures condensate and emits it indoors, adding moisture to dry climates—perfect for maintaining indoor comfort without sacrificing energy efficiency.

High-performance builder Ben Bogie highlights this unit’s versatility and precision, calling it a “compact HVAC solution” that’s both practical and innovative. Whether you’re cooling in summer or heating in winter, this heat pump ensures your home stays comfortable without the mess.

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Caju by CLB Architects

A young family with Brazilian roots and a love for the outdoors sought a serene retreat in Teton Village, Wyoming. Their vision? A minimalist, intimate home that harmonizes with the rugged landscape. Located on one of the last undeveloped parcels in the area, the site features dense timber, boulders, and panoramic views of the Snake River Valley. The design prioritizes minimal tree removal and site disturbance, ensuring the natural terrain remains intact.

Design Solution:
The house is a masterclass in balancing integration and elevation. A two-story layout positions living areas on the upper floor to maximize views of the valley and peaks, while practical spaces like the garage and gym occupy the lower level. A perforated stainless steel staircase acts as both a functional and sculptural element, allowing light to filter between floors. A bedroom wing, supported by slender columns, gently touches the hillside, preserving the terrain’s integrity. Outdoor spaces, including a metal grate deck encircling aspen trees and a front deck extending from the kitchen, further enhance the connection to the environment.

Structure and Materials:
Materiality is central to the project. The house’s name, Caju, references a Brazilian fruit, mirroring its weathering steel exterior. Larch-clad sections provide warmth indoors, while concrete floors and stainless steel accents complete the palette. The structural system uses traditional wood and steel framing on concrete foundations, with prefabricated trusses supporting an asymmetrical gable roof. Micro-channels at the southeast end add texture without a singular column.

Additional Information:
Completed in July 2024, the 0.51-acre site features a restrained material palette and meticulous detailing. Credits and project team details are provided, alongside engineering and consultant collaborations. Photos by Matthew Millman and drawings from CLB Architects are available for further exploration.

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đŸ€Ż Fun Fact of the Week

Net-zero energy buildings, which produce as much energy as they consume, are a top focus in 2025. Their market is expected to grow from $52.93 billion to $416.64 billion by 2037, driven by rising energy prices, government regulations, and the growing preference for green living. These buildings significantly reduce energy consumption and carbon pollution, saving water and reducing waste. They represent the future of sustainable construction.

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