(Yes, I understand that commercial structures don't typically have the correct plumbing and HVAC configurations for residential use. And, that this would require significant regulatory changes from local governments. But these would all be tractable problems, if we just got out of the way of the market, here)
Discussion
It's hard. But the money and demand is there!
I think it will happen as well. The building I work in is about 40% occupied. Was probably 95% before the pandemic. Once the long term leases expire, building owners will have to accept further losses or look to convert for residential or other usage.