Architect argues adaptive reuse can unlock hidden real estate value

International architect Taras Legar says investors may be overlooking value in buildings they already own as construction costs rise and prime locations get harder to find. In a new Realty Times column, he says adaptive reuse can triple usable area without expanding a building’s footprint.

Why it matters: - Rising commercial construction costs and limited quality sites are pushing investors to look harder at existing buildings. - Adaptive reuse can turn underused space into revenue-generating space without expanding a building’s footprint. - A structural review before a sale or redevelopment decision can change the financial outlook of a property.

What happened: - Taras Legar, an international architect and interior designer, published a new expert column in Realty Times on adaptive reuse. - The column is titled “Adaptive Reuse: How Changing a Building’s Function Unlocks Hidden Real Estate Value.” - Legar draws on 25 years of international practice across Europe and the United States. - The column argues that buildings with outdated functions are often undervalued because their structural potential is not fully examined.

The details: - Legar says investors often price a building based on its current use, not its underlying structural capacity. - Foundation depth, ceiling height and structural load capacity can reveal value that market pricing misses. - One case study describes a 269,000-square-foot indoor aquapark built on the third floor of a major retail complex. - The aquapark converted the property’s least productive area into its main driver of foot traffic. - Another case study covers a 9,150-square-foot warehouse transformed into a 32,300-plus-square-foot corporate headquarters for a major technology company. - That project increased usable area by more than three times without expanding the original footprint. - A current Florida project is converting a 6,330-square-foot warehouse into a premium automotive showroom. - That project raises usable area by 23% through vertical zoning made possible by a 24-foot ceiling height. - The column also outlines a checklist for investors and developers evaluating adaptive reuse. - The checklist covers how to assess structural potential, what regulatory changes a new use can trigger and where unplanned costs can appear if those issues are not addressed early.

Between the lines: - Legar is framing adaptive reuse as a capital-efficiency strategy, not just a design choice. - The examples suggest that a building’s hidden value may be unlocked by code, layout and structural capacity more than by location alone. - The timing matters because high construction costs make redevelopment from scratch more expensive and riskier.

What's next: - Investors and developers considering conversions are being urged to evaluate structural conditions earlier in the deal process. - Legar’s column points to more adaptive reuse opportunities in commercial, industrial and retail properties that no longer match current demand. - More information about Taras Legar and Leg-Art studio is available in the company’s announcement. - The full column is available in Realty Times.

The bottom line: - Adaptive reuse can create major value from existing real estate when investors look beyond a building’s current function and examine its physical potential.