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JEDT
9,1 Factors influencing the adaptive
re-use of buildings
Peter Bullen and Peter Love
32 Department of Construction Management,
Curtin University of Technology, Perth, Australia
Received 2 June 2009
Accepted 30 September 2009
Abstract
Purpose Adaptive re-use enables a building to suit new conditions. It is a process that reaps the
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benefit of the embodied energy and quality of the original building in a sustainable manner. Initiatives to
improve the sustainability of buildings have tended to focus on new construction projects rather than
existing ones. One reason is the tendency to regard old buildings as products with a limited useful life
that have to be eventually discarded and demolished. Much of the existing building stock will still be in
use for another 100 years. Thus, there is a need to develop policy and strategies that encourage adaptive
re-use and the ongoing sustainability of building stock. The purpose of this paper is to provide a
comprehensive review of the factors influencing the decision to adopt an adaptive re-use strategy.
Design/methodology/approach Adaptive re-use is beginning to receive attention, yet there is a
lack of consensus as to whether it is an appropriate strategy for meeting the changing needs and
demands of developers, occupiers and owners for existing building stock. Considering the limited
published research on adaptive re-use in buildings, particularly in the context of sustainability,
a comprehensive review of the normative literature is undertaken to determine the factors influencing
the decision-making process for its use.
Findings It is revealed that the major drivers for adaptive focus on lifecycle issues, changing
perceptions of buildings, and governmental incentives. The barriers to re-use, on the other hand, include
a perception of increased maintenance costs, building regulations, inertia of development criteria and
the inherent risk and uncertainty associated with older building stock. The identification of drivers and
barriers has enabled a balanced view of the adaptive re-use debate to be presented.
Research limitations/implications The paper concludes that more empirical research is required
to examine the role of adaptive re-use in the context of its contribution to sustainability if it is to become
an effective strategy that drives the formulation of public policy for addressing the issues associated
with existing building stock.
Practical implications The research identifies key adaptive re-use issues that need to be addressed
by policy makers, developers and owners during the formative stages of the design process so that
efforts toward sustainability can be ameliorated. Addressing a buildings adaptive re-use will
significantly reduce whole life costs, waste and lead to the improved building functionality.
Originality/value This paper provides policy makers and key decision makers with the underlying
factors that need to be considered when implementing an adaptive re-use policy as part of their
sustainability strategy.
Keywords Buildings, Sustainable development
Paper type General review
Introduction
Journal of Engineering, Design and Adaptive re-use has become an integral strategy to ameliorate the financial,
Technology environmental and social performance of buildings (Langston et al., 2007). The
Vol. 9 No. 1, 2011
pp. 32-46 Department of Environment and Heritage (2004) defines adaptive re-use as a process
q Emerald Group Publishing Limited
1726-0531
that changes a disused or ineffective item into a new item that can be used for a different
DOI 10.1108/17260531111121459 purpose. Continual demand for new and improved operational and sustainability
performance will invariably require the demolition of existing buildings, particularly as Adaptive re-use
land availability becomes scarce. Yet, it has been estimated that buildings that require of buildings
demolition account for only 0.5-1 per cent of the existing stock with the remainder
having a further 30-50 years of life (Petersdorff et al., 2004; Nye and Rydin, 2006;
Hakkinen, 2007). In fact, Shah and Kumar (2005b) proffer that in the case of significant
public buildings their life could extend in excess of 80 years. With the life of buildings
being extended adaptive re-use will play a pivotal role in meeting the increasing 33
demand for facilities and regeneration of the built environment (Kurul, 2007;
Langston et al., 2007).
Until recently, demolition decisions have been based on economic factors and
as a result buildings have been demolished prematurely (Langston et al., 2007).
Traditionally, the opportunities to maximize plot ratios provided by demolition have
been a more attractive investment proposition for developers than building re-use. The
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disposal of buildings has often been prompted by the perception that they need replacing
simply because they are old or inefficient. There are signs that this mindset is changing
as more is being spent on refurbishing and reusing buildings than constructing new
ones with re-use becoming a prominent strategy (Douglas, 2002; Ball, 2002; Latham,
2000; de Valence, 2004; Property Council of Australia, 2004; Langston et al., 2007). With
this in mind, this paper provides a comprehensive review of the factors influencing the
decision to adopt an adaptive re-use strategy. As there has been limited published
research on adaptive re-use in buildings, particularly in the context of sustainability it is
envisaged that the review presented will provide the building blocks for further research
in this contemporary and contentious area.
to retaining style and character and the so-called solid build qualities of buildings.
According to Ball (2003) it is generally preferable to repair a building than replace it
because the value of the location and quality of a new building is not necessarily better
than the old one. In contrast, ODonnell (2004) suggest that an adapted building will not
completely match a new building in terms of performance, but the shortfall should be
balanced against gains in social value.
Demolition is often selected when the life expectancy of an existing building is
estimated to be less than a new alternative despite any improvements that adaptive re-use
may inject (Douglas, 2002). According to Davies (2004) this would only justify limited
investment on a short-term basis prior to disposal and redevelopment. Certainly the
lifecycle expectancy of the materials in an older building may well fall short of those in
a new building. The age of materials will also directly affect the ongoing maintenance
costs of an adapted building, which, as a result, may well be higher than those for a new
building.
Adaptive re-use strategies are preferable to demolition if the objectives of
environmental sustainability and reduced energy consumption are also to be met
(Klunder, 2005; Thomsen and van der Flier, 2006). The central issues are that a static
internal environment that cannot be easily adapted is wasteful in terms of sustainability
and not warranted in terms of the needs of the occupants. The more flexible a building is
the quicker and easier to adapt, which represents a saving in the time and productivity
lost during office churn (Boehland, 2003).
Adaptive re-use also offers a more efficient and effective process of dealing with
buildings than demolition. This is because it is deemed to be safer as it reduces the
amount of disturbance due to hazardous materials, contaminated ground and the risk of
falling materials and dust. In particular, site work is also more convenient because the
existing building presents a work enclosure that reduces downtime from inclement
weather. In a similar vein, Itard and Klunder (2007) have stated that demolition should be
regarded as being an environmentally unfriendly process. They found from a renovation
study that adapting buildings for a new use generate less waste, uses fewer materials and
probably uses less energy than demolition and rebuilding. Evidence clearly suggests
that the opportunities created by adaptive re-use generally outweigh those presented by
demolition and rebuilding (Ball, 1999; Brand, 1994; Cooper, 2001; Douglas, 2002; Kohler
and Hassler, 2002; Petersen, 2002).
Building owners and occupiers need to evaluate an array of options when considering
discarding, expanding or changing the function of their buildings. The decision process
is influenced by political, economic, social, environmental and technological factors that Adaptive re-use
act in tandem. These factors influence the operational efficiency of buildings but also of buildings
their effectiveness in achieving sustainability outcomes. Establishing the viability of
adaptive re-use as an option, therefore, relies on identifying and understanding the
extent to which both outcomes are influenced by these factors. The drivers and barriers
influencing the decision to demolish, renovate, refurbish, rebuild and re-use are shown in
Figure 1 and are discussed below. 35
construction (e.g. materials, transport, resources) and resulted in clients opting to re-use
existing building stock (Douglas, 2002; Kohler and Yang, 2007). Ellison et al. (2007)
suggest that rising energy prices will drive property investors to improve the energy
efficiency of buildings so that they can maintain market demand and rental growth.
Significant growth in the construction of new buildings during the last four decades has
created a wealth of built stock and as a result there are many buildings available for
refurbishment and re-use (Shah and Kumar, 2005a). Though, many of these buildings
were constructed without adherence to environmental performance codes and thus are not
as environmentally efficient as new buildings. Adaptive re-use is seen as an alternative
way to address this environmental gap by functionally improving a buildings
performance while simultaneously reducing its environmental loading.
Adaptive re-use is being considered more frequently by building occupiers when they
require room to expand within an existing building. The reconfiguration of space is
often a more effective solution than relocation, particularly as re-use is less disruptive
(van der Voordt, 2004). Success would, however, critically depend on the adaptability
of the space within the existing building. Ellison et al. (2007) suggest that buildings
with low flexibility are of less value than a more adaptable alternative because they
require costly refits to accommodate changing spatial needs. Conversely, buildings that
incorporate space that is adaptable to changing needs require less frequent and less
costly refits and remain sustainable over longer periods.
Drivers Barriers
Increased building life Condition of external fabric
Lower material, transport and Environmental and finishes
energy consumption Demolition, renovate, loading (+) Maintenance costs
Reduced resource consumption refurbish or re-build Higher rental in reuse buildings
Less material waste Building regulations/planning
Decision point
Rising energy costs restrictions
Building functionality Complexity
Less disruption Adaptive reuse of existing Lack of skilled tradesmen
Environmental
Reduce negative impact of building stock Building layout ( e.g., space
loading ()
poor buildings efficiencies)
Changing work patterns Health and safety requirements
Requirement for multiple use Commercial risk and uncertainty Figure 1.
Financial incentives Low quality construction
Drivers and barriers
Sustainability economically, of adaptive re-use
socially and environmentally (+)
JEDT Rents tend to be higher in buildings that have been adapted. Whether occupiers are
9,1 prepared to offset higher rentals would be dependent on the cost benefit analysis of rents
and reduced energy bills over the period for which the tenant occupied the building.
Needless to say, the cost of upgrades needs to be balanced against current rent levels
because occupiers would be reluctant to pay above market rates just because a building
is more energy efficient (Ellison et al., 2007). Adair et al. (2003) and de Valence (2004)
36 suggest that the changing preference of building users to adaptive re-use is driven by a
commitment to sustainability juxtaposed with the need to improve the aesthetics of
existing buildings. Likewise, Yau et al. (2008) state that adaptive re-use creates the
opportunity to reduce the negative visual impact of poor quality buildings. This can
provide an opportunity to re-life an existing building and optimize its whole lifecycle
costs (Shah and Kumar, 2005a).
As the needs of owners and occupants continually change, this will invariably drive
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buildings to be re-used more frequently ( Jones Lang Lasalle, 2005; Lufkin et al., 2005).
The rate of re-use frequency will not be ultimately dictated purely by the physical ability
of buildings but by changing user expectations (Kohler and Yang, 2007). If response to
changing expectations is not met then buildings may experience higher occupancy
turnover due to dissatisfaction of occupiers (Ellison and Sayce, 2007). In economic terms
the buildings would be less sustainable, because they would experience higher vacancy
rates than alternative buildings that are more readily adaptable.
The operational energy in commercial buildings has increased significantly during
the last four decades and, therefore, energy improvements through adaptive re-use can
provide significant cost savings for occupiers (Brown, 2006; Bruhns et al., 2006).
Accordingly, several Australian Government agencies such as the Green Building
Council of Australia (2006) and the Department of Environment and Heritage (2005)
have espoused the need to reduce the environmental loading of their buildings and
implemented a strategy to retrofit. Moreover, the Green Building Council of Australia
(2006) has suggested that government should only tenant sustainable buildings.
Lifecycle issues
The life expectancy of buildings has been identified as an important issue that
determines whether they are re-used or demolished (Bradley and Kohler, 2007). Kendall
(1999) suggests that by extending the lifecycle of a building the ageing asset, existing
failures and resourcing requirements can be dealt with effectively. Addressing such
issues enables buildings to be stabilized so that they are able to accommodate new
technologies. In addition, it allows for changes in the organization of work and the
life-styles of building occupants. Being able to adapt to suit changing working practices,
particularly where greater flexibility and worker and space efficiencies are required, is
significant to investment performance (Ellison et al., 2007). Buildings that can adapt to
constant changing market demands would be more sustainable and provide investors
with confidence as long-term investments. When buildings are constructed for both
present requirements and future change, real estate decisions will effectively begin to
represent a sustainable investment.
Residual service life expectancy is based on matching user requirements to
resource availability and the capability of the building over the whole of its lifecycle.
Yet, estimating the service life of buildings remains a problematic issue (Lutzkendorf
and Lorenz, 2005; Ellison et al., 2007). This is because it can either be based on the end of
the physical life or a clients expected time line for the building. Compounding this Adaptive re-use
problem is the fact that estimation of future maintenance and operating costs of a of buildings
building requires observation and longitudinal evidence to determine the life of
materials and components (Lutzkendorf and Lorenz, 2005). As a result, there may be
considerable differences between the estimates produced by building owners and
occupiers and those calculated by property investors and developers.
Despite these estimation differences the residual service life method is considered to 37
be the most accurate way to estimate the optimum service life of built asset (Shah and
Kumar, 2005a). Although the process is complex it prioritizes investment choices in
relation to social, economic, environmental and governance factors. In many cases the
residual service life expectancy of a building may be less than a new replacement,
despite any improvements by adaptive re-use and because the life expectancy of existing
materials may fall short of new replacements. This will directly impact ongoing
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maintenance costs of the adapted building, as they can be higher than those for a new
building (Douglas, 2006).
Incentive schemes
Government agencies are prime candidates to implement an adaptive re-use strategy
because of their large property portfolios. Having a large stock in place enables agencies to
38 develop organization wide plans and adopt a strategic screening process to select the most
appropriate buildings to adapt and re-use (California Commissioning Collaborative,
2006). According to Barber (2003) and Shipley et al. (2006) government agencies can also
encourage development, particularly in the case of heritage buildings, through the use
of financial incentives. This has generally not been the case, however, for example,
Green Building Council of Australia (2006) has been critical of the government, as it has
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eschewed supporting, leading and providing incentives for adaptive re-use. The lack of
incentive invariably results in adaptive re-use becoming an unappealing exercise for
developers. This is further exacerbated by the often inconsistent application of local
authority requirements. The varying interpretation of requirements that affect re-used
buildings can lead to myopic decisions being made by developers when consider
they are confronted with retaining or demolishing a building. In swaying developers to
embrace sustainability, government clearly needs to generate policy initiatives that
encourage adaptive re-use. One such strategy is to introduce a degree of flexibility to
planning requirements, so that proposals for buildings that enable a range of different uses
in the future become viable. Moreover, Kincaid (2000) suggests that building codes should
incorporate a set of reusability criteria but the code should not be relaxed to simply
accommodate re-use issues.
The City of Los Angeles Adaptive Reuse Program (2004), for example, uses an
ordinance to streamline the application process and provide more flexibility in meeting
building code and zoning requirements. The ordinances introduce financial incentives to
provide income and property tax reductions and construction incentives that offer
additional flexibility in meeting building code requirements. Buildings being adapted still
have to satisfy planning and building code requirements but are subject to exemptions
where non-compliance is not possible. Key areas that create problems for older buildings
to comply with building codes during adaptive re-use are fire protection, disabled
access and parking allocation requirements. The building code in Ontario, Canada, has
inbuilt flexibility for these areas, which allows inspectors to accept alternative standards
to encourage adaptive re-use, but at the same time still maintain standards of safety.
A similar example can be found in Western Australia where most town planning schemes
allow some discretion for parking requirements.
The use of subsidies and incentives for adaptive re-use by public organizations such
as the Urban Renewal Authority and Housing Society of Hong Kong are helping to
mitigate the problem of urban decay (Langston et al., 2007). Yau et al. (2008) state that the
benefits of such incentives are not confined to upgrading buildings but have the flow-on
effect of increasing the values of adjacent property. Encouraging adaptive re-use may
involve a series of steps, which include making inventories of potential adaptive re-use
sites, amending local zoning regulations, arranging for possible property transfers of
publicly owned buildings, and providing assistance in obtaining sources of funding
such as loans, grants and rent subsidies (Municipal Research and Services Center of
Washington, 1997).
The Commission of the European Union (2002) issued a directive that member states Adaptive re-use
were required to introduce legislation to make existing buildings more energy efficient. of buildings
This also ensured the incorporation of energy improvements during the refurbishment
and adaptive re-use of buildings. According to Lutzkendorf and Lorenz (2005)
similar initiatives are being made in Australia, Canada and the USA, together with
the introduction of incentives such as tax credits and subsidy programs. The Green
Building Council of Australia (2006) state that government should generate tax 39
incentives to enable building owners to address the poor environmental performance of
existing buildings. Such incentives would naturally ensure that the high levels of energy
consumption, resource use and emissions generated by buildings are reduced.
Maintenance
The assessment of a buildings physical and operating for adaptive re-use can be a time
consuming process and involves a detailed survey of structure and fabric. In some cases,
the structure and fabric of buildings may have deteriorated to a point where high levels
of maintenance and repair are required, which can affect the buildings usage. In this
situation, for example, the building may not be a viable proposition for re-use due to the
continuing high maintenance and repair costs. The current layout of a building may
also be inappropriate for any change of use, particularly if it contains a large number
of columns or internal partition walls. Remoy and van der Voordt (2007) suggest that
buildings of this nature are not flexible enough to be re-used and have poor spatial
quality. Office buildings that are functionally or technically outdated for multiple uses
and have low visual quality should be demolished. ODonnell (2004) supports this view
because older buildings may also not reach the desired standards of new buildings in
terms of operating performance. Any shortfalls should, however, be balanced against
potential gains in social value from adaptive re-use.
Classification change
Changing the classification of buildings through adaptive re-use may result in zoning
40 changes and the need for compliance with new building codes (Langston et al., 2007).
This applies pressure to designers to find solutions, particularly with older buildings,
but there may be compensations for developers in the shape of gaining floor space
efficiencies. St Lawrence (2003) suggests that urban planners have the opportunity to
make a significant difference to environmental outcomes for development. Yet, they do
not always embrace this opportunity because of the lack of resources needed to police the
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requirements being asked by developers. There are, however, signs that local authorities
are starting to take note of sustainability issues such as climate change and reflecting
this in the requirements of building codes, standards and regulations (Department for
Business, Enterprise and Regulatory Reform, 2007).
effective, this knowledge needs to also encompass the negative as well as positive aspects
of reusing buildings. There is a mixture of perceived and factual negative design, technical
and operational issues attached to adaptive re-use projects. Where perceptions are strong,
they have convinced developers that adaptive re-use would be too expensive and
demolition is the only way to acquire a reasonable profit. Unfortunately, this has lead to
hundreds of older buildings being prematurely demolished (Shipley et al., 2006). It has
been suggested by the Green Building Council of Australia (2006) that there is a lack of
value attached to the long-term benefits of green buildings. There has been too great a
focus on short-term construction and a culture of building cheap for demolition in the
future. Itard and Klunder (2007) state that if buildings are produced to low quality
standards, their problems in meeting current needs will often be significant. The extent of
the financial and technical resources needed to solve these problems may preclude
adopting renovation, leaving demolition as the only viable solution.
Investors and developers typically base their adaptive re-use decisions on perceptions
rather than an objective assessment of risk, complexity, cost and value (Kurul, 2007).
However, with the rising costs of new construction this trend appears to be reversing as
most adaptive re-use projects now compete economically with redevelopment (Bullen,
2007). Moreover, it would appear that developers are beginning to appreciate the values of
age, character and architectural quality and pay for space and architectural standards that
are not available in equivalent new buildings (Bullen, 2007). The actual costs of adaptive
re-use projects still remain very difficult to define, despite the growing body of evidence
that supports their viability compared with demolition and redevelopment. Physical and
operational attributes of older buildings vary considerably and consequently the costs of
reusing them will also differ in relation to the scope, size and complexity of the works being
carried out. For example, a study by Mills et al. (2005) revealed that the cost to carry out
the adaptive re-use to a selection of different buildings ranged from US$0.13 to 0.45/sq.ft.
The California Commissioning Collaborative (2006) state that the size of a building is a
predominant factor in the cost of adaptive re-use and suggest that the larger the building
the less it would cost per unit of area.
Conclusion
The research identifies key adaptive re-use issues that need to be addressed by policy
makers, developers and owners during the formative stages of the design process so that
efforts toward sustainability can be ameliorated. Addressing a buildings adaptive
JEDT re-use will significantly reduce whole life costs, waste and lead to the improved building
9,1 functionality.
As buildings age their operational performance typically reduces until eventually
they fall below the expectations of building owners and occupiers. Apart from the
natural depreciation of the buildings fabric and systems their effectiveness is impacted
by changing market demands. The resultant declining operating performance is a
42 critical issue that owners and operators have to deal with during the potentially long
lifecycles of their buildings. Responding to declining performance frequently results in
decisions to demolish and redevelop buildings that are justified purely on economic
grounds. The decision to demolish may be premature if it ignores the residual utility and
value of buildings that could be optimized by adapting and refurbishing using the
process of adaptive re-use. Failing to optimize buildings also means that their residual
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lifecycle expectancy is not fully exploited which is a basic problem in adopting a more
sustainable use of the built stock. The drivers and barriers to implementing an adaptive
re-use strategy have been identified from a thorough review of the normative literature.
Adaptive re-use is beginning to receive widespread attention because of the
economic, social and environmental benefits that can be espoused. However, the jury
appears to be still out on whether adaptive re-use is the most appropriate strategy for
meeting the changing needs and demands of developers, occupiers and owners for
exiting building stock. Thus, more empirical research is required to examine the role of
adaptive re-use in the context of its contribution to sustainability.
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Further reading
Davis, L., Everest, A. and Wall, M.G. (2004), Cost model, Building Magazine, 16 April.
Corresponding author
Peter Love can be contacted at: plove@iinet.net.au
structures. Journal of Engineering, Design and Technology 14:4, 920-940. [Abstract] [Full Text] [PDF]
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University, Linkping, Sweden Mariusz Dalewski International Centre for Indoor Environment and
Energy, Department of Civil Engineering, Technical University of Denmark, Kgs. Lyngby, Denmark
Bahram Moshfegh Division of Energy Systems, Department of Management and Engineering, Linkping
University, Linkping, Sweden . 2016. Combining a survey approach and energy and indoor environment
auditing in historic buildings. Journal of Engineering, Design and Technology 14:1, 182-195. [Abstract]
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7. Kristy Dyson Department of Construction Management, Curtin University, Perth, Australia Jane
Matthews Department of Construction Management, Curtin University, Perth, Australia Peter E.D. Love
Department of Civil Engineering, Curtin University, Perth, Australia . 2016. Critical success factors of
adapting heritage buildings: an exploratory study. Built Environment Project and Asset Management 6:1,
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12. Nicholas ChilesheSchool of Natural and Built Environments, Barbara Hardy Institute (BHI), University
of South Australia, Adelaide, Australia Jamal M. KhatibFaculty of Science and Engineering, University
of Wolverhampton, Wolverhampton, UK Mohamed FarahOmniserv Ltd, London, UK. 2013. The
perceptions of contractor's and landlord's representatives in the refurbishment of tower blocks. Facilities
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Wolverhampton, Wolverhampton, UK Mohamed FarahLondon, UK. 2013. The perceptions of tenants
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15. Peter A. BullenDepartment of Construction Management, School of the Built Environment, Curtin
University, Perth, Australia Peter E.D. LoveDepartment of Construction Management, School of the
Built Environment, Curtin University, Perth, Australia. 2011. Adaptive reuse of heritage buildings.
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