Old is the new new as adaptive reuse gains momentum in commercial real estate.

Existing buildings hold solutions to many of the challenges facing urban centers today, from housing shortages to high office vacancy to climate change. Reuse has the potential to reduce whole-life carbon, improve resilience, and support local cultural identity and small businesses – it is also simply 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 From vacant offices and outdated housing to abandoned warehouses, adaptive reuse projects are quietly outperforming new construction by delivering faster returns, reducing risk, and catalyzing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.

Check out this 2025 report commissioned by ULI and made possible by a generous donation from Kohn Pedersen Fox (KPF) in the name of the late A. Eugene Kohn (ULI Life Trustee and KPF Co-Founder). This report makes the business case for adaptive reuse through three detailed case studies—in Kansas City, Boston, and Lisbon—supplemented by interviews with global experts. Together, they illustrate how transforming existing structures can generate strong financial returns while supporting community development and environmental sustainability.

What’s Old Is New: The Business Case for Adaptive Reuse (2025)

This report makes the business case for adaptive reuse through three detailed case studies—in Kansas City, Boston, and Lisbon—supplemented by interviews with global experts. Together, they illustrate how transforming existing structures can generate strong financial returns while supporting community development and environmental sustainability.

Key Takeaways

• Adaptive reuse delivers holistic value. The business case includes environmental benefits, social impact, distinctive design, and long-term financial and market returns.
• The right team is critical. Experienced architects, engineers, and preservation professionals help manage risks and uncover opportunities from the start.
• Design should work with the building. Understanding and respecting existing conditions allows for creative and cost-effective transformations.
• Policy engagement supports project success. Developers can play an active role in shaping local incentives and regulations that enable adaptive reuse.
• Reuse supports urban revitalization. These projects often spark broader investment in adaptive reuse, strengthen community identity, and increase long-term real estate value.