Building for the Future: Trends in Reuse Construction and Suburban Growth

Reuse construction and preservation of historic buildings are things that have been on the rise, particularly in Austin, TX. In Episode 19 of The Market Pulse, Aaron Fichera interviews Drew Hanish, the Founder and CEO of Pravo Construction. Let’s delve into some of the trends and challenges of the construction industry, what reuse construction entails, the current state of the commercial real estate market, and the suburbs.

The Rise of Reuse Construction and Historic Preservation

The term “reuse construction” or “adaptive reuse” refers to the process of taking ineffective or unused infrastructure and turning them into new assets in order to spark innovation and growth. It is a growing trend in the industry and includes historical preservation and remodels. One conversion idea is using unused office buildings and turning them into residential homes. Although this might sound good in theory, this brings a lot of challenges such as the layout of the building, mechanical, electrical, and plumbing (MEP) systems, and budget.

However, doing a conversion on depressed assets such as buildings from the 1920‑1950s is more attainable, making this an example of how adaptive reuse and historic preservation can come together. When working with older buildings, it is important to learn about its history, the materials used and being able to blend new with old. As Hanish explains, “preserving the authenticity of our communities and our culture while mindfully building for the future” is the goal. 

The Growth of Downtown Centers in the Suburbs

Downtown centers in the suburbs are becoming more walkable and are attracting a blend of corporate office, hospitality, and retail spaces into a LIVE, WORK, PLAY model. Samsung opening a facility in Taylor, TX 41 minutes away from Austin, shows how suburban cities are growing and introducing corporate offices in the suburbs. Other suburban cities such as Georgetown, TX have found ways to make their downtown center more walkable, bringing LIVE, WORK, and PLAY together as businesses are moving their offices into those centers. People are wanting more walkable cities, leading to the growth of downtown centers.

Within the current real estate market, Austin has seen an increase in vacancies in commercial office spaces and a rise in the retail and hospitality sectors. Although the Austin market is not as similar as the nationwide market due to it being home to tech companies such as Apple, Samsung, and TikTok, the vacancies in commercial office spaces due to COVID are still visible.

Key Takeaways

Reuse construction is a growing trend and can bring many benefits from sustainability to building for the future. Pravo Construction has been able to create an expertise outside of what the typical market has. For young professionals, if interested in the industry, getting into it is beneficial as there are many opportunities, particularly in the trades sector as the need for skilled labor will never be eliminated.