Colorado-Real-Estate-Journal_480333

30 / BUILDING DIALOGUE / SEPTEMBER 2025 ELEMENTS Adaptive Reuse Endless Opportunity: Adaptive Reuse Opens a World of Possibilities N ew data from the Denver as- sessor’s office reveals local real estate values are plum- meting. Vacancies are rising; uncer- tainty abounds. For those who make a living in commercial real estate – de- velopers, architects, engineers, con- tractors, tradesmen and suppliers – it may sound alarming. To our team, it sounds like a bonanza! Of all types of architecture, for our crew, nothing is more interesting, hands-on, and fun to work on than adaptive reuse. Architectural Workshop’s office at Kalamath and Ellsworth reimagined a factory built by Denver Nut Co. in 1954 as a creative, industri- al-chic workspace. In addition to AW’s 4,800 square feet, the adaptation incorporated two income-generating art- ist live/work suites that offset expenses. Elsewhere, we have adapted warehouses into restaurants, converted hotels into affordable housing, theaters into event ven- ues, and rejuvenated dozens of tired mid- and high-rise buildings with exterior opportunities and modern ame- nities. Though the possibilities are limitless, there’s a catch. If you don’t do it right, it won’t work. So, what makes a building a good candidate and what doesn’t? As with all real estate, location, location, location holds true. Identifying an unfilled need in the community and pinpointing a location from which to fill it is number one. Second is the building’s structural capacity within an interesting envelope. A viable building must have a strong, intact structure that can accommodate a vari- ety of new uses. Importantly, those bones need either a configuration that enhances curb appeal or a history that significantly increases the property’s uniqueness. Barrel-vaulted ceilings, historic bricks, and flooring, large openings reused as windows or outdoor access, reclaimed metal, unusual ornamentation, and exposed structures all offer broad appeal without significant ex- pense. On the other hand, investors can be certain that any adaptive reuse project will likely involve replacing MEP systems in entirety. With design guidance and time, choices such as high-efficiency mechanical units and LED lighting pay for themselves. For developers, the big upside is the opportunity to do something great at a fraction of the cost of new construction. While budgetary ambitions often balance decision-making, several things make an existing build- ing a poor candidate for reuse or investment. Adaptive use always requires bringing the entire building up to code, which is challenging. Meeting Americans with Dis- abilities Act, mechanical, fire safety, green building and city zoning requirements won’t be complication-free in a 70-year-old building. Importantly, though you never know what, you will always find a “key” that will bring value and make the project work. Sorting these things out before buying the property is imperative to devel- oping a pro forma. There are usually reasons a building remains vacant for a long time. So, investing in under- standing the building’s infrastructure and code compli- ance is the critical first step. Even with an excellent location and a well-suited building, adaptive reuse isn’t a gimme. One of the big- Kevin Beck Associate Principal, Architectural Workshop LaCasse Photography Architectural Workshop’s adaptive reuse of a warehouse incorpo- rated two income-generating artist live/work studios that offset expenses. LaCasse Photography Older buildings with outdated purposes can be adapted into new uses, including restaurants, offices, and retail, that highlight the building’s unique features.