Adaptive reuse represents a shift from demolition and destruction towards the re-purposing of existing structures. If you are thinking about investing in commercial real estate, should you consider adaptive reuse as a viable option?

Here's what you need to know about this concept.

What is adaptive reuse?

Adaptive reuse typically requires extensive renovation and rehabilitation, and quite often, developers will look for empty properties to make modifications. Take the example of how a former ACME supermarket in New Jersey got transformed into a cancer care center.

Adaptive reuse typically requires extensive renovation and rehabilitation, and quite often developers will look for properties that are empty to make modifications. This helps them avoid any hassles with removing or relocating tenants and their pieces of furniture and equipment.

Tearing down a building and starting from scratch does not fall under adaptive reuse.

Benefits of adaptive reuse for the community

The main benefit of adaptive reuse is that the used structures are given a new life. This also helps save resources, as demolishing these buildings would require more material to be put into landfill sites. Promoting sustainability is an important goal, which is why adaptive reuse has become more popular in recent years.

Benefits of adaptive reuse for a business

If you're thinking of investing in commercial real estate, you might be considering adaptive reuse. You'll find a few benefits to choosing this option over building from scratch:

• Cost savings - By choosing a vacant location, you reduce the need for major renovations. This means that your costs will be lower, and you can get into business faster. In addition, if an old building has good bones (i.e., good roof, concrete floors), then it could very well become a solid investment opportunity in commercial real estate.

• Tax benefits - If you choose to go the adaptive reuse route, you may be eligible for tax credits, grants, and other incentives.

• Environmental protection - Finally, you can help protect the environment by reducing emissions, minimizing waste, and recycling materials.

Challenges of adaptive reuse

Although there are some clear benefits to investing in adaptive reuse, you should be aware that it does involve a few challenges. For one thing, if you're buying an old property (that was formerly a church or a school, for example), you may have to do a lot of work to get the zoning and permit approvals that you need.

Corporate real estate managers can benefit from understanding all aspects of adaptive reuse. While it may not be suitable for every project, some commercial real estate developers are choosing this option more frequently as they look for ways to save money, reduce their carbon footprint, and preserve history.

Takeaway

If you've heard the phrase that adaptive reuse is the future of commercial real estate, rest assured that this is a trend that is unlikely to disappear anytime soon. The benefits of taking an existing building and repurposing it are many - but they aren't right for every investor.

As you consider investing in commercial real estate, consider that adaptive reuse might be an option to explore. With careful research and planning, you can help preserve history while promoting sustainability, reducing costs, and saving money.