Adaptive reuse--especially among old industrial buildings in cheap real estate districts of old line cities--is not confined to residential apartments and condos.
Hospitality, which has given multifamily developers a tip or two in the past couple of years or more, is now taking back, when it comes to an increasingly fierce lot acquisition strategy. Hotels are anteing up big bucks to buy old manufacturing plants to convert them--some even with historic rehabilitation tax credits--into fancy hotel properties. Bloomberg/ BusinessWeek correspondent Patrick Clark reports:
The idea is to grab hold of two dovetailing trends: consumers shying away from branded offerings and investors putting money into smaller U.S. cities, encouraged by local economic development types and a diverse set of national cheerleaders. They include AOL co-founder Steve Case, who has been banging the drum for technology startups in minor markets, and commercial real estate firms touting "18-hour cities" on the theory that traditional markets such as New York and San Francisco have become too expensive.