As we prepared this week’s briefing, one industry trend stood out: Rising construction costs are driving more adaptive reuse projects. Over the past year, more clients have explored repurposing office buildings, senior living communities and specialty hospitals for alternative uses. Below are five adaptive reuse projects that crossed our desks during that period.
- Behavioral Health to Inpatient Rehabilitation – A hospital provider closed an inpatient behavioral health hospital and converted it into an inpatient rehabilitation facility.
- Office to Specialty Hospital – A hospital provider converted a vacant office building into a specialty hospital offering post-acute care services.
- Office to Medical Outpatient Facility – A hospital provider converted traditional office space into a medical outpatient facility.
- Senior Housing to Behavioral Health – A hospital provider is converting a closed assisted living and memory care facility into an inpatient behavioral health hospital.
- Specialty Hospital to Behavioral Health – A hospital provider plans to convert a vacant specialty hospital into an inpatient behavioral health hospital.
In each case, the hospital provider pursued adaptive reuse because it offered a lower-cost alternative to new construction. As construction costs remain elevated, health care providers are likely to continue evaluating existing buildings as a practical way to expand or reposition services.
For additional information on this topic, please contact:
- Andrew Dick at adick@hallrender.com or (317) 977-1491;
- Joel Swider at jswider@hallrender.com or (317) 429-3638; or
- Your primary Hall Render or Hall Render Advisory Services contact.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot—outside of an attorney-client relationship—answer specific questions that would be legal advice.
