While converting it is not economical, class c office space (which is least desirable) demand is probably gone in this market due to lackluster demand for office space; the value of the building will get zeroed out by the market, at which point it can trade hands, be demo'd, and new residential can go up in its place.

You can think of class c office space, broadly speaking, as oil wells that have very little life left, and get bought up by folks who intend to extract the cashflow until they dump the externality on the public government and taxpayers (like abandoned shopping malls).

A recent example in St Louis is the AT&T office tower [1] [2].

[1] One of St. Louis’ tallest office towers, empty for years, sells for less than 2% of its peak price - https://www.costar.com/article/642008108/one-of-st-louis-tal... - April 10th, 2024 ("Goldman Group buys 44-story former AT&T office tower for $3.6 Million")

[2] St. Louis office vacancy hits all-time high [21.2%] as major companies downsize their footprints - https://www.bizjournals.com/stlouis/news/2026/01/15/office-v... - January 16th, 2026

(conversions when the economics pencil out, haircuts for investors when they don't and more investment is needed to wholesale replace a structure)

US office vacancy rates chart supposedly pulled from Moody's: https://old.reddit.com/r/charts/comments/1p8mhmq/us_office_v...