Adaptive Reuse Strategies: How to Plan for the Surprises of Building Conversion Projects

Adaptive reuse—repurposing existing buildings and materials for new uses—is more than a design trend. It’s a strategic response to building vacancies, housing shortages, and the desire to strengthen communities while preserving their architectural heritage. The benefits are compelling, but the path to success is rarely straightforward.

SWA has supported over 4.5 million square feet of buildings conversions, helping project teams navigate code changes, incentives, certification and compliance. We spoke with some of our clients to learn how they manage real-world adaptive reuse challenges—and the strategies they use to succeed.

Thank you to our clients who contributed their insights:

• Andrew Colbert, Vice President of Development, WinnCompanies
• Mark Ginsberg, FAIA, LEED AP, Partner, Curtis + Ginsberg Architects
• Christina McPike, Vice President, Energy & Sustainability, WinnCompanies
• Mark Soltysiak, RA, LEED AP BD+C, Principal, Stantec Architecture and Engineering, P.C.
• Andrew N. Stebbins, LEED AP, Associate, The Architectural Team, Inc.

Financing and Feasibility: The First Hurdle

Financing emerged as the most persistent challenge. Adaptive reuse projects often require layered funding strategies, combining historic tax credits, low-income housing tax credits (LIHTC), and state or local grants. But even with these tools, unexpected costs like environmental remediation or structural repairs can derail a budget.

Conversions were described as “opportunistic” by one of our interviewees, in that funding drives the narrative. Feasibility often hinges on early site visits, quick yield studies, and realistic pro formas.

There are many funding opportunities available; we often work with project teams to make sure all requirements for available funding are met. Here are some of the funding opportunities that our interviewees have leveraged to complete adaptive reuse projects:

Funding Tools Our Clients Use

• Historic Preservation Incentives
  • Federal Historic Tax Credits (HTC)
  • State Historic Tax Credits (e.g., Massachusetts and North Carolina.)
• Affordable Housing Programs
  • Low-Income Housing Tax Credits (LIHTC) – to support mixed-income or fully affordable housing.
  • U.S. Department of Housing and Urban Development (HUD) funding
• Sustainability and Energy Grants
  • New York State’s Thermal Energy Infrastructure Program (TEI) – $3M for electrification and decarbonization goals
  • Massachusetts’ COER (Clean Energy and Resiliency Program) – $3M grant used to support all-electric mill conversions
• Other Financial Tools and Strategies
  • Contingency Planning: Essential due to unpredictable remediation and design constraints.
  • Tariff-Adjusted Construction Contracts: One person said their company rewrote standard contracts to account for tariff impacts on materials like lumber and steel.

Design Constraints of Existing Structures

Working within an existing building’s structure is both the challenge and the charm of adaptive reuse. For the most common building conversion project type—office to residential—teams must work within the limits of existing floor plates, window placements, and structural systems, many of which were never intended for residential use. Wide office floor plates can make it difficult to meet natural light and ventilation requirements for residential units.

In contrast, mills and schools often offer more favorable layouts, with high ceilings and window patterns that support conversion. Civic buildings, courthouses, and banks have also proven to be adaptable, though they may require creative design solutions.

Accessibility adds another layer of design considerations. Historic entryways may not meet current laws and codes, therefore, requiring variances and alternate accessible routes. Early site visits and Chapter 34 walk-throughs are essential to identify these challenges before design begins.

Design Strategies for Successful Adaptive Reuse Projects

• Strategic Building Selection
  • Pre-Assessment Site Visits: Schedule building walk-throughs early to assess structural integrity, layout feasibility, and accessibility.Yield Studies and Pro Forma Modeling: Conduct quick evaluations to help determine how many units can fit and whether the project is financially viable.
  • Natural Light Access: Prioritize buildings with existing courtyards or light wells; especially for office conversions, look for older buildings with natural light access.
• Creative Layouts
  • Jogging Walls Around Windows: To comply with historic preservation requirements, design bedroom walls to jog around existing window placements.Large Volumes for Common Areas: Repurpose spaces like auditoriums or courtrooms that can’t be subdivided into shared amenity space.
  • Embedded Bedrooms and Lofts: Embedded spaces are integrated into the structure of a unit and utilize built-in features like alcoves or platforms. In adaptive reuse projects, embedded spaces can help meet design requirements. In deep mill buildings, for example, high ceilings can allow for creative vertical layouts to mitigate the lack of natural light.
• Design Flexibility
  • Avoid Tight Tolerances: Keep designs flexible to accommodate unknowns discovered during construction.
  • Experienced Contractors: Hire teams with adaptive reuse experience to handle unexpected conditions efficiently.
• Accessibility Planning
  • Understand the Extent of Accessibility Requirements: Assess each project early in the design phase to understand the impact of accessibility requirements. In many jurisdictions, change of use will trigger compliance with new construction criteria.Accessibility Audits: Invite consultants to assess accessibility challenges early.Accessible Entrances: Explore extent of work required to make building entrances accessible. For historic buildings or buildings with structural limitations, investigate alternative means of achieving compliance.
  • Elevator Access: All spaces intended for residents need to be on a level served by an elevator. For projects that include adding occupiable space to a roof or level not currently served by an elevator, this will require extending elevator service.

Sustainability Goals vs. Historic Preservation

When the building has historic significance—and it often does—achieving sustainability goals requires a nuanced approach. Unlike new construction, where systems and envelopes can be optimized from the ground up, adaptive reuse must balance energy performance with preservation requirements.

Interior insulation is typically limited to a few inches to maintain original finishes. Window upgrades are restricted by historic profiles, which can prevent the use of high-performance windows. As a result, teams often focus on optimizing roof assemblies, mechanical systems, and other areas not subject to preservation oversight.

It may also be necessary to work with preservation authorities and discuss options for interior insulation and high-performance windows to meet sustainability goals.

Compounding these challenges is the unpredictability of adaptive reuse projects. Even after demolition and remediation, teams frequently encounter hidden structural issues, environmental hazards, or undocumented historic elements.

Contingency planning is essential, and experienced contractors are critical to navigating these surprises efficiently.

Even with these challenges, we’ve helped clients achieve high-performance standards like Passive House in our conversion projects.

Conclusion: Adaptive Reuse Is Worth the Effort

Adaptive reuse takes vision, planning, and adaptability. But the rewards are significant: preserved architectural character, lower embodied carbon, new housing opportunities, and revitalized communities.

As more buildings pass the 50-year mark, the opportunities for reuse will only grow. With the right team and thoughtful strategy, adaptive reuse can deliver high-performance, accessible, and cost-effective buildings.

SWA is here to help you meet the challenges. Contact us here to discuss your next adaptive reuse project.