High Associates is Giving Existing Properties
New Purpose

Adaptive Reuse is a growing trend within the Commercial Real Estate Industry, and it’s one that High Associates is no stranger to, especially in 2020. According to CCIM, there are four key components that qualify a project as adaptive reuse:

1. Existing structure: While adaptive reuse projects may involve some level of new construction or an expansion/addition of space, they always start with an existing structure.
2. Functional and/or economic obsolescence: All adaptive reuse projects commence with a property in a state of disrepair, high rate of vacancy, or with highest and best use in transition. Essentially, the old use is no longer productive or economically viable, and the tenants have left.
3. Change of use: The project/property must involve a repurposing of a prior structure and use, not a mere re-tenanting with tenant improvements.
4. Economic viability: The new project/property must pass the ultimate test of highest and best use. Not only does the reuse need to be physically possible and legally permissible; it also must be economically viable.

Source: https://www.ccim.com/newscenter/

Two specific transactions stand out from this year that High Associates completed that leverage adaptive reuse: the former Toys R Us location transforming into Penn State Health’s outpatient Center in Lancaster, and Our Town Brewery bringing great food and locally brewed beer to the former location of a furniture store on North Prince Street in Downtown Lancaster.

Recently, Bill Boben, Senior Vice President of Sales & Leasing, completed the transaction with Penn State Health on the 47,000 square foot former Toys R Us building. It will consist of medical office space that will house a variety of medical and surgical specialties and outpatient services, such as imaging and lab testing. The former toy store will be redeveloped into two phases. In the initial phase, the building will get a new façade and that 30,000 square feet of redeveloped interior, while the redevelopment of the balance of the interior remains to be determined. Construction will begin in the spring.

Interested in your own adaptive reuse opportunity? Browse all our active listings and get in touch with our brokers via our website at www.highassociates.com.