Much of the aging building stock that populates our cities ’ skylines resides in or near obsolescence — particularly older , and sometimes historic , office and bank buildings . Many aren ’ t considered Class A and aren ’ t conducive to attracting new tenants and retaining the ones they have . According to a study from JLL , office vacancy rates sit at 19.1 percent across the board . That number is appreciably higher in outdated older buildings . Today ’ s employees expect a worthwhile experience from their workplace , which can be an economically challenging standard for building owners to meet . Time and time again , we see owners struggle and , eventually , their buildings lack care and fall into disrepair .
In today ’ s real estate climate , adaptive reuse has become a key strategy for revitalizing economically obsolete structures into thriving centers of community that meet the needs of today ’ s users . In 2022 , the AIA found that renovations , rehabilitations , additions and historic preservation comprised 50 % of design billings for the first time , demonstrating its ascending adoption . Often , we find vintage buildings 50 , 75 or 100 years or older can be well-suited for adaptation to hotels .
PRESERVING HISTORIC ASSETS The craft of historic buildings of the late 19th and early 20th centuries represent authenticity and reflect the identity of the eras they were built — think Greek Revivalist and Beaux-Arts style buildings . Their unique characteristics register with today ’ s generation of travelers and urban residential dwellers . Today ’ s travelers seek accommodations that are contextual and part of the fabric of a destination ’ s history versus copy and paste structures that look and feel as though they could be anywhere . Many " must-see " cities have earned these accolades thanks to the historic assets that give their neighborhoods an identity . Adaptive reuse not only saves these buildings but preserves the character and repurposes them for years to come .
One such building is Philadelphia ' s Lafayette Building , centrally located within one of the most historic blocks in America , across the street from Independence Hall and the Liberty Bell . It sat vacant for more than 15 years , virtually unsellable . Following due diligence to determine its reuse capability , the building was acquired and converted from its original office function to the Hotel Monaco , a 270-room , LEED Gold-certified boutique hotel . It was rehabbed completely inside and out with careful preservation of its Greek Revivalist style and thoughtful interventions for the new use .
Tax incentives were a crucial contributor to the success of the hotel , enabling the owner to utilize several million dollars in state and federal historic tax credits . These tax programs provide attractive incentives to owners and developers considering historic building renovations and can make the difference in bringing a project to fruition , physically and financially .
REVITALIZING NEIGHBORHOODS Not only does adaptive reuse make financial sense , it ’ s an effective strategy for revitalizing neighborhoods and spurs redevelopment . The Palladian Building
The Hotel Monaco Philadelphia was a conversion of The Lafayette Building .
Lobby area of the Kimpton Palladian in Seattle .
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