Rising CBD office vacancies, high construction costs, and tougher sustainability benchmarks are prompting more developers to reconsider the knockdown-rebuild model.
Adaptive reuse — the practice of retrofitting existing structures for new purposes — is gaining ground in land-constrained urban markets.
But not every building, or every developer, is up to the challenge.
We spoke to structural engineer Daniel Rose, Director of Built Form at Colliers Engineering & Design, about what it takes to make an adaptive reuse project work, and why early collaboration is essential.
The Case for Reuse
Mr Rose said a combination of commercial and regulatory drivers were behind the shift.
As Australia’s population grows, demand for well-located urban land is intensifying — much of it already taken up by ageing, low-rise commercial stock.
Changes to planning controls and rezoning have created new opportunities for developers to rethink underutilised assets. Instead of clearing the slate, many are now exploring the case for transformation.
“That’s where we see real opportunity,” Mr Rose said. “Buildings that can be sensitively transformed rather than replaced outright.”
Construction cost pressures are also playing a role.
“If you can reuse existing elements, that can have real cost benefits,” he said.
Sustainability is also increasingly front of mind.
With growing requirements to reduce embodied carbon and protect heritage, adaptive reuse offers a pathway that satisfies both.
“Progress shouldn’t mean demolishing everything and starting from scratch,” Mr Rose said. “If a structure can be salvaged, repurposed, and enhanced, that’s a far more sustainable approach.”
Why Some Projects Don’t Stack Up
Despite its appeal, adaptive reuse isn’t without its hurdles, and not every project is viable.
“First, the numbers need to work,” Mr Rose said. “There has to be a return that justifies the investment.”
Structural integrity is also critical. Some older buildings simply don’t meet the baseline for safe or efficient reuse.
Compliance is another sticking point. Australia’s regulatory settings are not always geared for innovation in this space, limiting what’s feasible under current codes.
“We need to ensure buildings are safe and compliant, but current standards don’t always align with the realities of reuse,” Mr Rose said. “Some overseas models allow for greater innovation, but Australia hasn’t quite caught up yet.”
The developer mindset is another piece of the puzzle.
“Not every client is open to the idea, so there’s an education process around what’s possible when the right team is involved,” he said.
Getting It Right: Three Tips to Nail Adaptive Reuse
For developers weighing up whether to retrofit or rebuild, Mr Rose offers three key pieces of advice:
1: Prioritise collaboration: “Successful adaptive reuse projects require alignment between authorities, clients, developers, engineers, and architects from the beginning. Without that early collaboration, delivery becomes much harder.”
2: Do your research: “Understand the building, the zoning, the constraints, and the opportunities. Don’t assume demolition is always the cheapest or best solution because that is often not the case.”
3: Choose the right partner: “Above all, make sure you are working with a company that has a proven track record and can show you successful outcomes. With the right team, adaptive reuse can deliver excellent results.”
