Report: adaptive reuse projects require community partnerships
Photo via iStockPhoto.com
When it comes to green building, what's old is new again. Creative developers are repurposing outdated buildings, leading the way for adaptive reuse.
In many neighborhoods, service stations are being transformed into fast-food establishments and vacated elementary schools into condos or hotels.
As land becomes scarce and as towns and cities age, creative developers are stepping in to meet growing demand and are repurposing older buildings into much needed residential, office and retail spaces. As long as sound underwriting and proper planning are taken seriously, the outcome of a renovation and adaptive-reuse project is often better than new development.
These are some of the key trends noted in Avison Young's Topical Report: "Adaptive reuse projects: What's old is new again," released in April 2018.
The report examines several examples of the adaptive-reuse movement, such as seen in Long Island and Queens. In Long Island, adaptive reuse is proving to be beneficial for both users and the city's commercial real estate industry as a whole. As the report noted, adaptive reuse projects offer many advantages to communities, residents, occupants and developers. Utilizing existing structures with character and historical significance often paves the way for an area-wide renaissance.
Making old new again
"Adaptive reuse projects take many forms; however, in its simplest definition, adaptive reuse is the redevelopment of a functionally, or financially, obsolete real estate property into newer and better uses," said Ted Stratigos, Avison Young principal and managing director of the firm's Long Island office. "With this increasing trend, especially in established areas in the U.S., where vacant and developable land is scarce, many cities and communities welcome these transformations, as they usually spread to other buildings and public spaces – often revitalizing an entire area.
"Perhaps the best example of this trend in the New York area is the borough-wide transformation of Brooklyn, which is still going strong," Stratigos said. "On Long Island, the growing demand for live-work-play lifestyles has triggered the transformation of an area long utilized for industrial, manufacturing and distribution into retail and multi-residential properties. These highly attractive projects have area-wide benefits to employees, residents and the entire community."
Developers are able to recycle or breathe new life into an otherwise old and obsolete structure. Although projects sometimes require creativity, imagination and patience, the many benefits include the revitalization of blighted areas; a reduced environmental impact due to public transportation and shorter commutes, which can include walking and cycling to work; the ability to capitalize on locations that cannot be redeveloped, such as waterfront or parkside spaces; incentives from governments; and LEED certification.
Queens has also undergone considerable expansion due to adaptive reuse. In the Long Island City area, more than 11,000 new apartments have been built over the past decade, and more than 23 million square feet (msf) of adaptive-reuse projects are planned. In Astoria, Queens, the $1.5-billion Hallets Point project includes 4,000 residential units, and plans call for 3.5 msf of development. In Jamaica, Queens, projects spanning 6.48 msf are planned.
Following a process
The report walks through the steps in the decision-making process, starting with financial requirements and the project's likelihood to lease up or sell out. The developer/investor must also consider, and get advice on, such factors as zoning; the site's physical attributes; environmental impact and traffic studies; site and environmental remediation; historical significance; labor; parking; and proximity to rapid transit, which has been a key selling point.
"Although there are numerous considerations to address, the concept of adaptive reuse has significant positive benefits for developers, investors, the community and the environment," Stratigos said. "Adaptive reuse prolongs and improves the usefulness of a building in its surroundings. Renovation of existing structures should always be the first consideration – the result could yield a cohesive blend of old and new."