How Repurposing Old Industrial Buildings and Warehouses Helps to Resolve the Space Crunch

Repurposing an old industrial building or warehouse is like giving this often-historic structure a new lease on life. To begin, building owners and/or developers bring these venerable old facilities up to code.

With that accomplished, the building is essentially a blank canvas that’s ideal for multiple uses. Our company has helped numerous clients establish or expand their business operations in one of these adaptable structures.

We’re excited to play a role in these large-scale “adaptive reuse” projects. In fact, we gain great satisfaction from helping each client expand their footprint in their respective marketplace.

What’s Behind the Commercial Space Shortage

Several factors are behind companies’ current needs for vacant industrial and warehouse space. First, continued eCommerce growth has resulted in online retailers’ need for more warehouse and distribution facilities.

In our experience, this trend isn’t just the case in large cities (or primary markets). The need also exists in smaller cities (or secondary markets). In fact, a high-volume online retailer might need several warehouses and distribution centers across the United States.

To compound the space problem, online grocery delivery businesses have set up shop in many parts of the country. Grocery retailers, big box stores, and other companies cater to time-crunched consumers with no time for a grocery store run. Finally, technology and biotech companies are looking to establish operations in large cities that contain complementary businesses.

The COVID-19 Pandemic Further Complicated the Issue

Enter the COVID-19 pandemic, which brought much of the country’s economy to a standstill in Spring 2020. Two factors combined to create a perfect storm of sorts. Locked-down (and bored) consumers ramped up their eCommerce spending to impressive levels. More demand for goods meant an increased need for warehouse and distribution facilities.

Unfortunately, the pandemic’s shutdowns paused commercial construction and building renovation projects across the country. Ironically, getting these facilities online would have eased the space crunch during the pandemic.

Fast forward to 2022, and much of the United States economy is back in business. However, some retailers never reopened their doors while other chains consolidated operations in fewer stores. The net effect: more rentable commercial space has recently become available. Even with this extra capacity, the demand for warehouse and distribution space often outpaces the supply.

“Adaptive Reuse” can Take Many Forms

The term “adaptive reuse” can cover a lot of ground. A dilapidated industrial building or dusty old warehouse can become an attractive, functional space suitable for diverse businesses. A grubby structure with high ceilings, natural brick walls, and abundant natural light makes an ideal 21st-century office building.

Likewise, a long-abandoned factory can morph into a streamlined production facility. Technology-based companies and biotech firms often snap up these expansive buildings. Demand for these facilities is especially high in metro areas with a scarcity of sizable buildings.

Now-idle warehouses are ripe for transformation into business incubators and entrepreneurs’ offices. Revamped warehouses also house artist studios, maker spaces, and out-of-the-box businesses that often thrive in unconventional settings.

Finally, warehouses easily lend themselves to commercial kitchens. These health department-approved facilities often service food trucks or process food products for home-based culinary businesses.

5 Key Considerations for an Adaptive Reuse Project

Adaptive reuse opportunities are spread throughout the United States. Large cities and small towns contain over 300 billion square feet of existing buildings. Many vacant industrial facilities and warehouses are among them. Entrepreneurs and developers considering an adaptive reuse project should ask five questions when evaluating each property.

Will the Location Meet the Company’s Needs?

Location, location, location really is the most important consideration. For example, urban-area industrial facilities may be ideal for conversion to office space. This is especially true if a space shortage already exists. If the property is easily accessible to commuters, that’s even better.

Does the Exterior Make a Pleasing First Impression?

A building with good architectural interest is always a plus. Attractive landscaping can certainly be added later. If the facility has plenty of parking for employees and customers, that’s even better.

The building should have operational utility and water lines. A functioning sewage system is also extremely important. Easy proximity to roads and highways is also key, especially for businesses that sell or distribute products.

Is the Building Structurally Sound?

Repurposing an older industrial building or warehouse means taking a “ground up” approach to the project. Underneath the crumbling wallboard and peeling paint, the building should be structurally sound.

A structural engineer and/or environmental hazards expert should address any specific concerns. Expert advice is especially advisable for former manufacturing facilities. These older structures can contain asbestos insulation and other hazardous materials.

Is the Building’s Infrastructure Intact?

Regardless of the planned reuse, the building’s infrastructure should also be functional. The heating and cooling systems are most important, as replacing them would incur a major expense. Other key considerations include ease of entry and exit, important for fast building evacuation.

Will the Building Provide a Good Workspace?

A pleasant work environment promotes workplace harmony and productivity. Toward that end, the building should ideally have good natural light, temperature and ventilation, and acoustics. A space that’s adaptable to an open layout is important, especially for an office-based business.

Making the Right Location Decision

An entrepreneur or building developer can gather information and decide whether a specific building is a good repurposing candidate. If the project gets the green light, the company can confidently take the next step to achieve its business goals.