Source: http://www.renewalredevelopment.com, August 2016
By: Kasey Jones
As urban revitalization proceeds at a steady pace and construction prices continue to escalate in cities where vacant parcels are all but nonexistent, many property owners and developers are finding that substantial profits can be made through major renovations of existing buildings.
Renovation starts in some cities are at an all-time high and it has become commonplace for buildings originally built 100 or more years ago to now house luxury condos, Class-A offices, five-star hotels and even institutions such as universities and hospitals.
Often, these major renovation projects take place in stages; one floor or area of a building at a time, while the rest of the building remains tenanted and profitable. With the renovation and operation of these older buildings, there comes with it an additional and sometimes heavy responsibility to assure clean, healthy indoor air is provided to tenants and occupants.
The general public, legal community, state and local regulators and healthcare providers have become much more educated and aware of potential indoor air quality exposures, and we have even seen states, such as New York for example, recently pass legislation specific to protecting public health against indoor air exposures. Fortunately, there are ways in which environmental insurance can be used as a tool to help ease a developer’s concerns and provide protection for all parties involved.
Savvy developers understand that deals are to be had on existing buildings that although may still be well-tenanted, may not have been updated or improved in decades. Secondly, by renovating these buildings, developers will attract tenants willing to pay a premium for location and luxury.