Adaptive reuse projects have played an integral role in the resurgence and transformation of cities, including Los Angeles' transformation over the past decade. Architecture and design firm HLW is an expert in adaptive reuse projects and an ardent supporter of recycling and reusing buildings as a pathway to city growth. The firm says that existing buildings have an interesting history and adapting existing buildings is a more sustainable approach to development. The biggest benefit, however, is the value potential of adaptive reuse. Existing buildings have an an inherent value that can be elevated through a reuse project.

“Buildings, particularly industrial buildings that are at the end of their commercial cycle, are not desirable and do not garner market rental rates,” Mark Zwagerman, managing director at design firm HLW Los Angeles, tells GlobeSt.com. “Therefore, the property valuations drop because of poor performance. By developing a great design that takes full advantage of the inherent qualities of a building, and then adapting to a new use, the resulting rental rates and property valuations can multiply by three, four, or five times. In addition, most adaptive reuse projects are “by-right” developments that save a significant amount on time by not having to go through a lengthy entitlement approvals process.”

Any dated building can be updated and transitioned to an alternative use, but Zwagerman says that former industrial projects have been particularly strong candidates for adaptive reuse. We have seen this frequently throughout Los Angeles, with industrial sites becoming offices and retail shops. “Former industrial warehouses and manufacturing buildings make great candidates for adaptive reuse projects that can be altered into commercial and creative office spaces, or mixed-use projects,” says Zwagerman, adding that the firm has experience updating many different types of assets. “We enjoy working on buildings with beautiful and historic details or unique structural systems that add to the appeal of the creative office tenant. In Southern California, having the ability to create exterior work, dine, and play spaces is highly desirable; – properties with site area, courtyards or roofs with the potential to be converted into outdoor decks are ideal.”

It is important to remember that adaptive reuse isn't analogous to value-add. These projects require more than cosmetic upgrades, and often present unique challenges from zoning changes to legal battles. Still, these challenges are not prohibitive to achieving value in an adaptive reuse project. “Adaptive reuse projects can be very complex, which is why we start the design process with extensive research,” Zwagerman explains. “We look into the existing planning, zoning, building code, and structural capacity of the existing building. Once we have a full understanding of the building's limitations and potential, we begin working on the design strategy; we maximize the intrinsic value to create spaces with character, quality, and the right mix of amenities to serve the target market. Each project is unique, so we try to emphasize the authenticity of a building in our designs.”

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