Industrial buildings tend to be much easier to renovate, because they're filled with big open spaces.

Commercial office buildings are optimized for seating space, so you get a lot more interior walls already built and often shorter ceilings then industrial spaces. That's a lot more renovation to add in all the necessary plumbing for showers and toilets and often laundry in every unit.

New building codes mean that everything has to be done right to today's standards, not yesteryear's, so it becomes cheaper to demolish and rebuild than retrofit, especially if the building has a lot of interior space that doesn't have access to exterior walls for mandated windows.

Regulations. I have some small experience with this, although I'm not a professional developer. The regulations for residential properties, whether built for purpose or converted, make this very difficult (and therefore costly) in the UK and I presume other countries.

What modern planners and developers say is converting modern office buildings isn't cost effective often. Warehouses cost less to convert than high rise buildings. Most old buildings do not have large areas without natural light or ventilation.