page_title: Adaptive reuse
section_title: Economic considerations
hierarchical_section_title: Adaptive reuse / Factors affecting adaptive reuse / Economic considerations
caption_attribution_description: English: Kelso Home for Girls / YMCA demolition from south-east
context_page_description: Adaptive reuse refers to the process of reusing an existing building for a purpose other than which it was originally built or designed for. It is also known as recycling and conversion. Adaptive reuse is an effective strategy for optimizing the operational and commercial performance of built assets. Adaptive reuse of buildings can be an attractive alternative to new construction in terms of sustainability and a circular economy. It has prevented thousands of buildings' demolition and has allowed them to become critical components of urban regeneration. Not every old building can qualify for adaptive reuse. Architects, developers, builders and entrepreneurs who wish to become involved in rejuvenating and reconstructing a building must first make sure that the finished product will serve the need of the market, that it will be completely useful for its new purpose, and that it will be competitively priced.
context_section_description: The decision to reuse or demolish built assets is driven by economic considerations such as development costs, project costs, investment returns and market. The economic costs differ from project to project and some professionals go as far as to assert that "new build is always more economical" and "renovation is universally more expensive" due to their own involvement with adaptive reuse projects. Others claim that the return on investment is enhanced when using an older building because of the savings involved. One Canadian developer claims that reusing buildings generally represents a saving of between 10-12% over building new. In terms of profitability, there are also assertions that adaptive reuse projects often have an uncertainty to their profitably that newer developments lack. When looking for funding to build, these considerations must be addressed.
caption: The Kelso Home for Girls in Baltimore, Maryland was a typical candidate for adaptive reuse, but it was razed to accommodate parking for a new athletic facility when the cost of conversion was found to be too great
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