REAL ESTATE IN UTAH IS ADAPTING FOR THE BETTER: There's a new trend across the valley: adaptive use building.

• Author: Ciaramella, Elainna
• Position: SPECIAL SECTION

ACCORDING TO the Associated General Contractors of America (AGO, construction material prices soared 20 percent in 2021. Despite prices moderating in December, most contractors surveyed by the AGC listed costs as their top concern heading into 2022.

"Costs may not rise as steeply in 2022 as they did last year, but they are likely to remain volatile, with unpredictable prices and delivery dates for key materials," says Ken Simonson, chief economist at the AGC. "That volatility can be as hard to cope with as steadily rising prices and lead times."

Increasing the costs of lumber and other materials will not tame Inflation, boost supplies of affordable housing, or help the economy grow, says Stephen E. Sandherr, CEO of the AGC. Instead, Sandherr believes the best solutions are to remove tariffs and beat inflation.

According to an AGC news release in January 2022, "Material costs were listed as a top concern by 86 percent of contractors, more than any concern. Availability of materials and supply chain disruptions were the second most frequent concern, listed by 77 percent of the more than 1,000 respondents."

As supply chain challenges and steep price increases in materials add to the squeeze, developers in Utah have become resourceful--and are turning to adaptive reuse as an effective solution.

Adaptive reuse refers to the process of taking an existing building and repurposing it for a new use, also known as "conversion." The advantages of this are many. Adaptive reuse can preserve a building's historic features, is environmentally friendly, and extends the life of an existing building while fighting urban sprawl. The result is an updated and modernized building--with many of the same features of a brand new building--at a fraction of the cost.

The repurposing of an old building is often the starting point for redeveloping a street, city block, or even an entire district. Adaptive reuse can be a symbol that a community is restoring pride in its neighborhood by getting the most out of prior investments and developments. This approach also gives architects and developers significant freedom to reimagine these spaces.

UNIQUE OPPORTUNITIES FOR ADAPTIVE REUSE

Vacant industrial buildings, old factories, and historic buildings have provided unique opportunities for architects and developers to engage in adaptive reuse. This trend has been spreading across the valley.

Colliers SVP Richard Robins says that with inflation and rising construction...