Embracing adaptive reuse presents some ingenuity about building from scratch that is gaining demand. Construction Today’s Bill Wilhelm highlights the practice employed in multi-family, retail, office, and larger-scale entertainment venues. What exactly does this imply?

The basics

Sparing no effort, adaptive reuse breathes new life into an old site or building for a use other than its original intended use. One popular asset class that is seeing success with this goal is hotels. The rate at which a property can come to market is at a much faster pace in a reuse scenario, which means a few things:
• “Heads in Beds Faster”: There is an opportunity for revenue streams to offset construction costs sooner, pointing to a healthier bottom line.
• Cost savings: Traditional build from scratch has an average cost increase of 20% due to adaptive reuse. The initial investment is lower, which allows operators to obtain a comparable result for a reduced financial backing.
• Labor and Materials Protection: In his article, Wilhelm acknowledges that “labor and material costs change regularly. how much the costs of certain materials increase. fall, depending on the moment. Compression of the construction schedule through adaptive reuse mitigates the risks associated with market rises or falls that affect labor and material costs.”

The challenges

No construction project is perfect. Adaptive reuse is certainly no exception. In the case of a building that requires site improvements per borough/city code, there is often a significant capital requirement that places the owner in a circumstance where it may make more sense to demo and rebuild from scratch. Every situation is different, however there are countless structures where this notion makes sense.
In unconventional localities or municipalities with a smaller population, there is a greater inclination for construction from scratch. Adaptive reuse becomes a bit more prevalent in areas of asset class demand and a shortage of suitable properties nearby.

Depending on the factors influencing a project, adaptive reuse most likely has the potential to be an attractive option in saturated markets. Because savvy construction project managers value engineering at every stage, many recognize adaptive reuse not only as an opportunity to save money, but also to cut valuable time off a schedule.

Referenced sources:
Construction Today Magazine, Volume 16, Number 3, Page 8, “Giving New Life”, Bill Wilhelm, 2018

About the Author:

JH Greene is a commercial general contractor and construction manager who seeks flexible construction solutions whenever possible. Since 1974, we’ve been known for exceeding customer expectations. Learn more at http://www.jhgreene.com.