When it comes to housing in Anchorage, there is a surplus of demand, but a deficit of supply.

"Popp said there were just under 400 housing units listed for sale in Anchorage at the end of October. But those which are listed are being purchased at a fast rate... Additionally, Popp says that apartments are experiencing a low vacancy rate on top of escalating rent prices. He said some of the larger landlords are seeing around a 2% vacancy rate." (Fernandez, 2021)

With such low vacancy rates, paired with limited units being available, the idea of converting the mostly vacant building into a hotel or office space seems inexpedient. Alaska's tourism may be increasing, but how can the demand for staff be satisfied when there is a lack of workers? Where do they expect these workers to stay if there's no housing available?

As stated by Midtown Anchorage Assembly member Meg Zaletel, the apartments would help with the current housing crisis; however, the cost of the units could possibly be on the higher side. (DeMarban, 2022) With the asset of offering possibly the best views in the city, it may draw in tenants from more affordable properties who are willing to take on a more expensive lease for said views. As a result, this would increase the low vacancy rates to something more reasonable.

Additionally, there is potential to convert the building into micro-apartments or small studios. This would give single individuals or couples a low-maintenance place to live while paying lower rent and fees. Micro-apartments are becoming a popular choice for young professionals (2022). While not the same size as major cities like Los Angeles and New York City, Anchorage has one of the highest costs of living in the country. Surely, these affordable and efficient living spaces would help draw in a younger generation of workers.

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Sources:

Fernandez, Georgina. (Nov. 22, 2021). Advocates say Anchorage’s housing shortage contributes to the number of people experiencing homelessness.
    Alaska's News Source. URL.

DeMarban, Alex. (April 20, 2022). Once a symbol of ‘growth and prosperity,’ the mostly empty former BP building in Anchorage remains in limbo.
    Anchorage Daily News. URL.

Bungalow Team. (February 1, 2022). Micro-apartments: Just how tiny are they?
    Bungalow. URL.