Turning an older building into a new commercial space can create opportunities that new construction cannot always offer. Across Ohio, developers continue to give warehouses, factories and other commercial buildings a new purpose because they offer established locations and features that are hard to recreate today.
A historic property can present challenges that you would not face on a vacant site. That history can affect your plans before construction even begins. It may change what you can build, how long approvals take and what the project could cost.
Legal considerations for adaptive reuse
Historic buildings can offer opportunities that newer properties do not, but they can also require more approvals and legal review. Before buying or renovating a property, developers usually look at several factors that can affect the project’s cost, schedule and overall plans, including:
- Limits on changes to the building
- Approvals needed for the new use
- Environmental issues from the property’s previous use
- Property restrictions that may limit redevelopment
- Tax incentives available for qualifying historic buildings
- Construction contract terms that address unexpected building conditions
Together, these factors can give you a better idea of what the project may involve. They also explain why two historic buildings that look similar can require very different redevelopment plans.
Before you buy a historic property
Buying a historic property usually involves more than a typical commercial real estate purchase. Older buildings can come with hidden issues that affect your plans. Past uses of the property, unresolved code violations and existing leases can all increase costs or add time to the project.
Historic status can also affect redevelopment. Some buildings qualify for tax incentives that help reduce costs. Others require extra approvals or limit changes to the building’s exterior. Looking at these issues before you buy the property can give you a clearer picture of the opportunities and challenges.
Planning your redevelopment project
Every adaptive reuse project starts with an existing building, and every building has its own history. Because of that, these projects can involve different requirements than many new construction projects.
Whether you plan to turn a warehouse into office space or give a historic commercial building a new use, understanding how the building’s history could affect the project can help you better estimate the timeline, budget and approval process. It can also help you set realistic expectations before construction begins.