What’s Old Is New: The Business Case for Adaptive Reuse

Zusammenfassung des Berichts: As cities confront rising office vacancies, housing crises, aging building stock, and ambitious climate targets, adaptive reuse is emerging as a powerful tool for real estate developers to unlock economic value while addressing pressing urban challenges. This report makes the business case for adaptive reuse through three detailed case studies—in Kansas City, Boston, and Lisbon—supplemented by interviews with global experts. Together, they illustrate how transforming existing structures can generate strong financial returns while supporting community development and environmental sustainability.

Adaptive reuse isn’t simply a preservation tactic, it’s a forward-looking development strategy. By creatively repurposing buildings to meet evolving market demand, reuse projects can reduce carbon emissions, catalyze urban revitalization, and deliver resilient, future-ready spaces.

Three Projects, Three Urban Strategies The featured case studies show how adaptive reuse can take many forms, depending on the local context and market opportunity:

• West Bottoms Flats (Kansas City, Missouri): Converted from historic warehouses into unique micro-unit apartments, this project revitalized a long-neglected neighborhood. Incentives such as historic tax credits and green infrastructure funding made the project feasible, and market value has risen steadily since completion.
• Congress Square (Boston, Massachusetts): In a bold move to reenergize downtown, developers modernized a historic block with a rooftop glass addition and preserved ornate interiors to appeal to tenants seeking character and connectivity. The result is a revived commercial hub that draws businesses back to the city center.
• Oriente Green Campus (Lisbon, Portugal): A once-abandoned mall shell was transformed into a green tech campus that blends academic and commercial uses. With near-zero office vacancy in Lisbon, the reuse of the massive structure unlocked new value and is poised to activate surrounding retail and services.

Adaptive Reuse in Action

This report introduces a framework for understanding how adaptive reuse supports long-term economic value by creating a positive feedback loop: reuse projects spark urban revitalization, which enhances local market conditions and increases real estate value, making further investment more viable.

Key enablers and strategies discussed include:

• Holistic Impact Measurement: Beyond traditional ROI, successful reuse projects are assessed using triple-bottom-line indicators (economic, environmental, and social) that together define long-term value.
• Tailored Solutions: Each project responds to its local market needs, building stock, and regulatory environment, demonstrating the flexibility of reuse as a strategy.
• Experienced Teams: Early collaboration among architects, engineers, and preservation specialists is essential to manage risk and unlock the full potential of existing structures.
  

Key Takeaways

• Adaptive reuse delivers holistic value. The business case includes environmental benefits, social impact, distinctive design, and long-term financial and market returns.
• The right team is critical. Experienced architects, engineers, and preservation professionals help manage risks and uncover opportunities from the start.
• Design should work with the building. Understanding and respecting existing conditions allows for creative and cost-effective transformations.
• Policy engagement supports project success. Developers can play an active role in shaping local incentives and regulations that enable adaptive reuse.
• Reuse supports urban revitalization. These projects often spark broader investment in adaptive reuse, strengthen community identity, and increase long-term real estate value.

Read the full report to see the findings on how adaptive reuse can unlock real estate value, revitalize cities, and shape the future of sustainable development.