Turning barely used office space into desperately needed urban housing seems like a win-win in the work-from-home era. But even in cities eager to do this, plenty of obstacles remain.

The office property sector is in trouble as many workplaces remain empty, and that threatens to spark a number of economic problems, including more pain at the country's banks.

With so many people still working from home, companies are cutting back on office space. That spells trouble for small businesses that depend on foot traffic.