Using Temporary Adaptive Reuse Strategies as a Stopgap for Your Real Estate Portfolio

While asset repositioning through adaptive reuse provides a solution for addressing underperformance in real estate portfolios and shifting market dynamics, it is not always ideal to permanently alter the use of a specific asset. In such instances, temporary adaptive reuse strategies offer a stopgap.

Temporary adaptive reuse strategies for real estate assets involve repurposing underutilized or vacant buildings or spaces for short-term use to generate income, activate the site, and contribute to community engagement while a long-term plan is being developed or implemented.

Adaptive reuse strategies can be applied to the full spectrum of real estate uses regardless of scale.  Smaller-scale strategies include, inter alia, the following:

• Retail: Vacant storefronts can be used for holiday pop-up markets while a long-term tenant is secured.  These spaces can also be used for experiential marketing and brand installations.

  
  

• Light industrial: Empty warehouses can be used as artist studios, maker spaces, or events.

  
  

• Office: Offer short-term office space for coworking setups for startups or freelancers.  This strategy can also be applied to vacant retail storefronts. 

For larger-scale real estate assets, some potential adaptive reuses could include, inter alia, the following:

• Retail: Depending on the scale, vacant retail centres can be used as civic and community hubs containing uses such as public libraries, civic offices, healthcare centres and clinics, etc.

  
  

• Industrial: Warehouses can be used for urban farming initiatives.

  
  

• Office: Use vacant office buildings for educational purposes, such as business schools and other training centres.

Repurposing existing real estate assets not only holds advantages for the owner but also for the end user. Using an existing building means that tenants can be up and running much quicker, as the base infrastructure, such as HVAC, lighting, etc., is often already in place, cutting down on fit-out costs and time.

Aspects to take into consideration when assessing the viability of an adaptive reuse strategy include:

• Zoning and permitting: Is the envisioned use permissible within the existing context of the asset

  
  

• Infrastructure: Does the building/space offer the needed utilities, safety, access, etc.

  
  

• Exit strategy: Assess the plan to transition to a long-term use, albeit a new use or reverting back to the original.

When considering employing adaptive reuse strategies or looking for new space for your enterprise, it is important to consult with expert real estate advisors. Their value lies in blending market intelligence, technical expertise, and stakeholder alignment to guide owners toward profitable, sustainable outcomes.