Benefits of Adaptive Reuse

We recently posted a story to our website detailing how a client used laser scanning to prove that a historical fire station could be renovated into a residential dwelling, while preserving the historical integrity of the structure. This project is a classic case of Adaptive Reuse – a term that is gaining great exposure due to its relation to federal and state government Green initiatives.

For many service providers and engineering firms, Adaptive Reuse can provide a source for rejuvenated business interest. What is Adaptive Reuse, and what benefits are leading to positive implications for the construction industry as new construction has slowed?

Adaptive reuse involves taking an existing building and repositioning its function. There is a popular misconception that this only involves historic buildings, but contractors experienced in adaptive reuse have made effective modifications of buildings that are only a few years old.

Federal Government Incentives
For adaptive reuse projects involving historic buildings, developers often tap into a federal tax incentive program known as the historic rehabilitation tax credit. This program generates a credit that directly reduces taxes rather than offering a tax deduction such as depreciation, which reduces taxable income. Commercial property owners who choose to renovate their historic buildings and follow certain historic preservation guidelines are eligible for a federal tax credit equaling 20 percent of the cost. A 10 percent credit is available to non-historic commercial buildings more than 50 years old.

Local Government Incentives
City governments such as Rochester and Buffalo, NY are following in the footsteps of Los Angeles, where they successfully implemented the Adaptive Reuse Ordinance in 1999. The program is run by the City of Los Angeles and coordinated by a multi-departmental effort through the Office of the Mayor, the Department of Building and Safety, and the Fire Department. The departments work as a team to quickly move projects through the design, permitting and construction processes.

The program consists of two components: a set of land use ordinances which relaxes typical zoning requirements, and adjustments to fire and life safety measures which provides flexibility in the approval and permitting process.
Less Waste (and Cost) of Construction Materials
This benefits the contractors and developers, as well as the environment. By leveraging existing building materials, the Adaptive Reuse incentives can save developers as much as 20 percent on construction costs. That also means that the resources and energy that were once used to create these structures are not squandered.

Older buildings in particular have wonderful bones from a design perspective. They have high floor-to-floor ceiling heights that allow a lot of natural daylight and good circulation. Also, buildings in particular that were built in the earlier part of the century were designed to optimize their performance in what is called the passive state. That is, being able to take advantage of solar orientation and wind and natural ventilation because the reliance on mechanical systems for comfort did not exist.

Benefits to the Local Economy and Quality of Life
Adaptive reuse usually results in lower construction materials cost, but often requires more time in labor. This means that, dollar for dollar, a renovation project will provide more funds to the local work force than a new construction project. This is good news for companies looking to find enough hours to give to loyal employees.

Abandoned buildings and vacant lots drive down property values, create a sense of economic decline and hopelessness, and invite crime. A redressing of this building stock maintains the character of our cities and bolsters our civic pride.

Having created over 10,000 apartments and condo units since its inception, the Los Angeles ordinance is credited as the city's most successful method in increasing housing stock in a short period of time. The program has also saved and brought back into productive reuse an estimated 60 buildings that potentially faced the wrecking ball.

Benefit to Laser Scanner Operators
One of the major arguments against Adaptive reuse is the advisability of planning for reuse when project schedules can suffer due to added design delays or increased burdens on documentation. Laser scanning provides one of the most efficient methods for collecting documentation of as-builts or existing buildings. Three-dimensional and BIM models are easily created from laser scan data, removing the burden placed upon the need for accurate documentation of buildings.