Former Pfizer HQ Evacuation Puts Office Conversions Under Structural Scrutiny

With Los Angeles office vacancy at 25.6% and citywide adaptive reuse rules that could unlock more than 43,000 homes, Alpha Structural warns preliminary structural due diligence must happen before major financing, design, and entitlements.

LOS ANGELES, July 27, 2026 /PRNewswire/ -- Two steel columns buckled on the 21st floor of a 37-story Manhattan office tower undergoing conversion into apartments on Jul. 7. Cracks prompted officials to evacuate the site and nearby buildings. The cause at the former Pfizer headquarters remains under investigation, but the incident has sharpened a question for California developers: What must be verified before an aging commercial building can be safely and economically converted into housing?

That discussion is especially timely in Los Angeles. The Citywide Adaptive Reuse Ordinance took effect Feb. 1, extending streamlined conversion rules to commercial buildings at least 15 years old and qualifying parking structures at least five years old. Mayor Karen Bass has said the expansion could spur more than 43,000 housing units. Greater Los Angeles office vacancy also reached 25.6% in the second quarter of 2026.

"Adaptive reuse is a powerful way to create housing, but developers cannot assume an eligible building is structurally ready for conversion," said Kyle Tourjé, Executive Vice President of Alpha Structural, a Southern California structural engineering and construction firm specializing in structural upgrades and repair, seismic retrofitting, foundation repair, and structural tenant improvement projects. "Offices, retail buildings, and parking structures were designed and originally constructed for different uses, loads, and seismic demands. Some may adapt with limited intervention. Others require substantial work. Knowing the difference can determine whether a project is viable, or not."

A New Use Changes How the Building Must Be Evaluated

Los Angeles' ordinance can streamline the approval of a qualifying conversion, but it does not remove the structural and life-safety requirements the building could require, or hazards that the building may already have. Changing an office or another commercial property into housing requires project teams to evaluate how the proposed layouts, structural modifications, mechanical systems, and new occupancy will interact with the existing structure.

California's 2025 Building Standards Code took effect Jan. 1, 2026. Depending on the project scope, existing conditions, and applicable compliance pathway, a conversion may require upgrades to the systems that resist earthquake forces, foundations, structural connections, or floor and roof diaphragms, which distribute lateral forces throughout the structure. The condition of an associated parking structure may also affect the project.

The extent of that work can determine whether the development is still a targeted conversion or becomes a much larger reconstruction or repair effort. "Seismic strengthening or major structural repairs are often one of the largest structural cost drivers in a California adaptive reuse project," Tourjé said. "Developers need to understand what the building requires before they commit to a design, budget, and schedule."

Hidden Conditions Can Rewrite the Budget

Major cost overruns often trace back to conditions that are not visible during a walkthrough. Concealed foundation deficiencies, deteriorated steel, inadequate seismic connections, substandard prior repairs, and water-related damage may not surface until demolition or targeted investigation begins.

The Urban Land Institute has reported industry estimates that only about 25% to 30% of existing office buildings may be viable for residential conversion. Structural conditions are only part of that calculation. Floor-plate dimensions, building systems, location, acquisition costs, and financing can also determine whether a project is feasible.

"Original drawings do not always show what was actually built, and more importantly, they do not capture decades of renovations that were permitted or nonconforming structural repairs, structural distress, and deterioration," Tourjé said. "Targeted exploratory work lets the team verify critical conditions early. Sometimes it shows that planned strengthening is not necessary. Other times, it finds a hidden deficiency before it becomes a delay or change order."

Structural Due Diligence Before Design

Tourjé recommends bringing structural engineering and construction expertise into the earliest feasibility and acquisition stages, ideally before a property is purchased or financing is finalized or immediately following acquisition. Early investigation allows the project team to compare original plans with existing conditions, conduct exploratory testing, estimate structural upgrade costs, and determine whether the proposed residential program is preliminarily achievable and viable before major design work begins.

Los Angeles' original adaptive reuse program helped create more than 12,000 housing units Downtown. The lesson is not that adaptive reuse is unsafe or unworkable. It is that zoning eligibility is only the beginning of determining whether a particular building can support a successful conversion.

"Early structural evaluations are one of the most valuable investments a project team can make," Tourjé said. "It reduces uncertainty and gives owners facts before they commit significant time and funds. The goal is not to stop a conversion. It is to make sure the project starts with a realistic understanding of the building and limiting surprises during the conversion process."

About Alpha Structural, Inc. 

When he saw geological challenges trigger catastrophic building collapses, Dave Tourje, founder of Alpha Structural, Inc., immersed himself in construction repairs and mitigation facing the iconic hillside homes and buildings throughout Los Angeles in the 1980s. He recognized a lack of skilled tradesmen and the need for repairs or upgrades to be engineered and constructed successfully. Today, Alpha Structural is Southern California's premier structural repair and engineering firm. With more than 30 years of experience in foundation repair, hillside stabilization, and seismic retrofitting with challenges of earthquakes, wildfires and landslides, Alpha Structural distinguishes itself by being dual-licensed and authorized by the State of California to both engineer and build in-house—an integration that eliminates miscommunication and cost overruns seen when engineering and construction are handled separately. Alpha Structural is trusted by homeowners, municipalities, and commercial partners alike. For more information visit Alpha Structural.

References:

• California Building Standards Commission. (2025, July 1). Information bulletin 25-01: 2025 California Building Standards Code—Now available. California Department of General Services. dgs.ca.gov/-/media/Divisions/BSC/06-News/Information-Bulletins/2025/BSC-Bulletin-25-01-FINAL.pdf
• Colliers. (2026, July 15). Greater Los Angeles office research report 2026 Q2. colliers.com/en/research/los-angeles/greater-los-angeles-office-research-report-2026-q2
• Gottlieb, B. (2026, July 7). Buckled columns leave NYC Pfizer HQ conversion unstable. Engineering News-Record. enr.com/articles/63288-buckled-columns-leave-nyc-pfizer-hq-conversion-unstable
• Los Angeles City Planning. (n.d.). Citywide Adaptive Reuse Ordinance. Retrieved July 20, 2026, from planning.lacity.gov/citywide-adaptive-reuse-ordinance
• Los Angeles City Planning. (2026, February 9). Old building, new life: Adaptive reuse unlocks more housing [Press release]. planning.lacity.gov/odocument/0fa826b2-52c7-4ab7-ad29-e6edefed4493/Adaptive_Reuse_Ordinance_Feb_2026.pdf
• Miet, H. (2024, November 7). ULI Fall Meeting 2024: Making office-to-residential conversions pencil out. Urban Land.urbanland.uli.org/making-office-to-residential-conversions-pencil-out
• New York City Fire Department. (2026, July 7). Mayor Mamdani, FDNY Commissioner Bonsignore provide update on major technical response at a Manhattan skyscraper. City of New York. nyc.gov/site/fdny/news/PI3926/mayor-mamdani-fdny-commissioner-bonsignore-provide-on-major-technical-response-a
• Office of Mayor Karen Bass. (2026, April 28). Mayor Bass visits adaptive reuse project that will create more than 500 units of affordable housing in Downtown L.A. City of Los Angeles. mayor.lacity.gov/news/mayor-bass-visits-adaptive-reuse-project-will-create-more-500-units-affordable-housing

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SOURCE Alpha Structural