In a world obsessed with all things new and shiny, adaptive reuse finds untapped power in the old. Much like a rare find in an antique or thrift store, reuse unlocks hidden value in the old by giving existing buildings new purpose, character, and relevance in a rapidly changing world.
Lori Ferriss, co-founder of the Built Environment Preservation Lab, is helping lead this shift. She champions a powerful idea: reimagining and reusing existing buildings isn’t just good for the planet, it’s good for business. From vacant offices and outdated housing to abandoned warehouses, adaptive reuse projects are quietly outperforming new construction by delivering faster returns, reducing risk, and catalyzing economic and community revitalization.
Commissioned by ULI and made possible by a generous gift from Kohn Pedersen Fox (KPF) in honor of the late A. Eugene Kohn, ULI Life Trustee and KPF co-founder, Ferris, as the KPF fellow, authored What’s Old Is New: The Business Case for Urban Adaptive Reuse. The report explores how developers can find both profit and purpose by embracing the potential of existing buildings, illustrated through three case studies that generated tangible value for communities and investors alike.
Recently, the ULI Decarbonization team sat down with Ferriss to discuss the real potential of adaptive reuse. In the conversation, she unpacks persistent myths, highlights lessons from the field, and makes a compelling case for why and how developers, investors, and designers should leverage adaptive reuse.
ULI: What makes adaptive reuse a smarter business investment, rather than new construction?
The business case for adaptive reuse lies in the capacity of these projects to simultaneously generate economic, environmental, and social co-benefits. We found that adaptive reuse can yield a strong financial return on investment, spark urban revitalization, support community culture, provide a range of ecological benefits, and provide spaces people love in a way that’s challenging to match with new construction.
From a direct financial perspective, adaptive reuse of underutilized or vacant buildings can have lower acquisition costs and often reduces time to market. It can unlock financial incentives for historic preservation or zoning incentives for adaptive reuse and residential conversions.
There are also indirect business benefits for companies that undertake adaptive reuse. For example, adaptive reuse as a sustainability strategy can signal values alignment with key stakeholders, which can in turn attract investment from partners and support the retention of staff within the organization.
From an experiential perspective, old buildings have character that cannot be replicated with new construction. Renovation can result in unique spaces, showcase historic materials, and connect occupants to history in a way that makes tenants want to be in the space.
ULI: What are some of the biggest misconceptions about adaptive reuse projects and how do we overcome them?
There are many perceived challenges related to adaptive reuse—it’s too expensive, the building doesn’t have the right appeal or isn’t the right size, the structural system can’t handle a new use, or there may be hazardous materials—just to name a few. While these are valid concerns, there are many solutions to overcome these barriers. For example:
- Start with a compatible old building and new vision. For example, a 1970s office building with low floor to floor clearance may not be ideal for new use as a systems-intensive wet lab, but perhaps it could be rebranded into high-tech offices or adapted into mixed-use multi-family housing.
- Build an experienced team to create a compelling vision. Design teams with a passion for transforming existing buildings can tell the visual story of what tired or unfashionable buildings can become. This storytelling can help raise funds, secure investment, and build community support.
- Understand the existing conditions. Knowing where hazardous materials are, where accessibility is an issue, where repairs are needed, and what alterations have taken place over time is essential to de-risking reuse projects. It may even uncover hidden opportunities, like underutilized basements or attics that can become some of the most unique spaces.
- Work within the physical constraints of the existing building. Designing based on the structural layout and type of the existing building will minimize costly and time-consuming retrofits to foundations and primary structural elements.
- Embrace architectural character. Whether or not a building is designated as historic, old materials, irregular geometries, and remnants of the past can contribute to the unique architectural outcomes that draw users to the space.
- Don’t be afraid of change. Whether it’s lightweight vertical additions, recladding, or subtracting unneeded space, most buildings are capable of visual and physical transformation.
ULI: How do the urban revitalization benefits of adaptive reuse translate into tangible economic value for commercial real estate developers?
Adaptive reuse of underutilized buildings often creates a positive feedback loop. It catalyzes environmental, social, and economic revitalization within the neighborhood, which in turn increases property value and attracts a greater pool of tenants. In the three cases we studied, the projects brought in new residents, businesses, and students, mitigated urban heat island effects and improved biodiversity, and fostered community engagement. All of these benefits feed back into higher occupancy rates, higher property values, and opportunities for future development in the area.
ULI: The report proposes a co-benefits framework for evaluating adaptive reuse. How can this approach shift decision-making in the commercial real estate sector?
The report found that the financial success of adaptive reuse depends on many non-economic factors. Beyond the urban revitalization benefits already discussed, aspects such as creating unique spaces that attract tenants, strengthening community cohesion, and signaling a commitment to climate significantly contribute to the value of these projects. Co-benefits frameworks are a valuable tool to integrate these more qualitative or indirect outcomes into standard decision-making processes along with quantitative financial metrics.
ULI: The report showcases diverse case studies from Kansas City, Boston, and Lisbon. What common factors contributed to the success of these very different projects?
What the three case studies have in common is, in fact, their context-specific approaches to adaptive reuse. They each responded to local market needs and community cultures, worked with local zoning agencies, and took advantage of the unique character and attributes of each of the existing structures. In turn, each case created a project that would not have been possible with new construction.
ULI: How can partnerships, organizations like ULI and KPF, and other stakeholders play a role in adaptive reuse projects?
Zoning incentives, favorable tax structures, design vision, technical capacity, consumer demand, and inspiring demonstration projects are all needed to enable adaptive reuse in commercial real estate. Each stakeholder group in the industry has critical perspectives and knowledge, and we have to work together to create policies and foster practices that support a strong adaptive reuse market.
ULI: Anything else you would like to add?
One message I heard from almost everyone I spoke to, and that I continue to hear again and again in the field, is that in addition to making money, reuse is often a labor of love. There is a special sense of pride, accomplishment, and often stewardship that comes from successfully renewing existing buildings. In an industry driven by financial returns, I think it’s important that we also recognize the delight and sense of community that comes from adaptive reuse.
