Conversion Feasibility Index Methodology

“What Is the Conversion Feasibility Index & How Is It Determined? 

The Conversion Feasibility Index (CFI) is a proprietary tool designed by CommercialEdge to assess the potential for converting existing office buildings into multifamily properties. The CFI utilizes a weighted scoring system from 0 to 100 that evaluates building characteristics and location to determine its suitability for conversion. The higher the CFI score, the higher the likelihood of a successful conversion.  

The index incorporates a wide range of factors, including building age; total square footage; building depth; mid-block positioning; primary use subtype; number of stories; floor plate shape; ceiling height; green building certifications; walkability; and proximity to mass transit. 

When determining a building’s CFI, each factor receives a score based on its suitability (or lack thereof) for conversion. Since contributing factors have different levels of importance in determining conversion feasibility, they are all assigned a weight based on their impact. The weighted score of each factor is then summed up to determine the final CFI score of the building. A higher CFI score suggests a greater likelihood of a successful conversion, while a lower score indicates potential challenges or limitations. 

To provide a clear and actionable assessment of a building's conversion potential, the CFI score is classified into three tiers: 

• Tier I: Top Conversion Candidates  

Score: 90-100 points 

Office buildings that exhibit the most favorable characteristics for conversion, suggesting a high likelihood of success and limited challenges. 

• Tier II: Quality Conversion Candidates 

Score: 75-89 points  

Office buildings that have a strong conversion potential but will have added challenges compared to Tier I properties.  Tier II conversions will require some building modifications or adjustments to be compatible with residential use. 

• Tier III: More Difficult Conversion Candidates  

Score: 0-74 points 

Office buildings that face significant challenges or limitations that impact their conversion potential. Often, these buildings will require extensive modifications and creative solutions to undergo a successful conversion to residential use.  

With this added tier-based classification, the CFI provides a comprehensive and nuanced assessment of an office building’s conversion potential, allowing CRE professionals to make informed decisions and prioritize projects with the highest likelihood of success. “