A notable concern in commercial real estate investing is the possibility that the property you own could lose the value it has for its intended purpose. With the ever-changing economy and fluctuating consumer needs, it is all too easy to end up with a vacant commercial property that is not producing any income.
Rather than listing your commercial property for sale and face the risk of taking a loss on it, have you considered adaptive reuse? Putting your real estate to work in a new inventive way can help you continue to profit from your investment or even give you new investment opportunities.
What Is Adaptive Reuse of Commercial Property?
Adaptive reuse of commercial real estate is basically repurposing a property for a new use when it is no longer useful for its original purpose. It means improving and retrofitting a property without actually changing the primary structure or rebuilding. Adaptive reuse is becoming a more common solution to keeping commercial property profitable today, even when demand for certain types of property changes in some markets.
How Does Adaptive Reuse Help in Commercial Investing?
Adaptive reuse can offer a number of benefits for an entire community. It gives property owners other options than just listing their unproductive commercial property for sale and provides new opportunities for creative investors with a vision. Adaptive reuse can be considerably less expensive than rebuilding and is often done by using fewer resources.
It can improve a neighborhood when investors choose to renovate an old, unused piece of commercial real estate to help prevent a decline caused by changing commercial markets. Adaptive reuse can also help a business obtain a preferable location where there is no room to build a new one as well as provide new businesses that consumers demand.
Current Innovation in Adaptive Reuse
Although not every commercial property is suitable for adaptive reuse, many industrial and retail spaces as well as some office spaces can be modified for other use. Innovative repurposing of such properties includes everything from outer-city industrial space converted to indoor agricultural use to large retail centers and inner-city industrial buildings turned into everything from apartments and activity centers to new professional spaces.
How Can Adaptive Reuse Benefit You?
As an investor, you can benefit in a number of ways from innovative adaptive reuse. Most importantly, it can help keep your current investments income-producing. You can continue to profit from your current properties without any kind of a loss, either of income of being forced to sell below value.
You can also benefit by purchasing undervalued commercial property for sale if you have a creative idea and a feasible way to achieve it. Depending on the type and location of the property and the spaces your local community demands, you could do well by repurposing buildings that have lost their demand for one reason or another.
If you invest in commercial real estate, it is always a good idea to keep an open mind on adaptive reuse and how it can be profitable. Whether you own a commercial property that has lost its demand or have great ideas for repurposing commercial property for sale, there are many benefits to creative reuse!