Adaptive Reuse
Culture-Focused Design
Current Industry Challenges
The commercial real estate landscape continues to evolve in 2025, influenced by post-pandemic shifts and economic changes:
+ Office Spaces | Remote and hybrid work models have led to a national office vacancy rate of 19.8% at the end of 2024.
+ Retail Properties | Shopping centers face challenges due to online shopping trends, resulting in a 5.4% vacancy rate in the third quarter of 2024.
+ Multifamily Housing | Rising homeownership costs and housing shortages keep demand high, with an 8.7% vacancy rate in the third quarter of 2024.
+ Industrial Properties | The sector remains robust, driven by e-commerce and logistics needs.
To adapt, property owners are exploring Adaptive Reuse — transforming existing structures for new purposes— to maintain financial viability in this shifting environment.
96B
SF of Commercial Floor Space in the US
5.9M
Commercial Buildings in the US
INCREASED VACANCY RATES:
As businesses close or reduce their operations, the demand for commercial space declines. This led to an increase in vacancy rates and declining rent revenue particularly in the office and retail sectors.
DECLINING RETAIL PRICES:
As vacancy rates increased, landlords were forced to lower rental prices to attract tenants.
INCREASED DEMAND FOR FLEXIBLE LEASING OPTIONS:
Tenants became more interested in flexible leasing options, such as short-term leases and subleases, as they sought to reduce their risk in the uncertain economic environment.
FOCUS ON HEALTH AND SAFETY:
Tenants and landlords placed a greater emphasis on health and safety measures, such as enhanced cleaning and air filtration systems.
SHIFT TO REMOTE WORK:
The pandemic accelerated the trend towards remote work which has lowered demand for designated long-term workspaces but raised the demand for short-term hoteling workspaces.
Approach
At Carrier Johnson + Culture (CJ+C), we help clients, developers, and brokers determine if Adaptive Reuse aligns with their goals by evaluating key factors like:
+ Building Feasibility | Floorplate layout, column grid, mechanical/electrical systems, structural integrity, and site constraints.
+ Regulatory Considerations | Zoning, historical status, and city/state/federal incentives.
+ User Needs & Program Shifts | Interior reconfiguration, access, and parking requirements.
Our goal is to reimagine buildings while preserving core elements like structural integrity, elevator shafts, and exit stairs. We maximize material reuse through restoration, repairs, and recycling— making Adaptive Reuse an ideal candidate for LEED or WELL Certification.
Navigating zoning changes and potential incentives is critical, especially for mixed use projects. With deep experience in working with local and federal agencies, our team ensures a smooth process to maximize project potential.
WORKPLACES
Most Adaptive Reuse projects begin with converting office properties into new uses. This also includes upgrading Class B or C office buildings into Class A assets through strategic refurbishments— extending lifespan, increasing occupancy, and boosting property value for resale or refinancing. Cities are seeing this trend in aging skyline-defining buildings from the 1960s and 1970s, where upgrades focus on:
+ Exterior & Structural | Building façade, mechanical, electrical, plumbing, and parking improvements.
+ Amenities & Common Areas | Lobbies, outdoor spaces, and shared facilities to enhance tenant appeal.
With proper updates, buildings typically last 50-60 years, but Adaptive Reuse extends longevity and ROI
KEY CONSIDERATIONS FOR REUSE & RECLASSIFICATION
Before repositioning an office asset, feasibility studies assess:
+ Location & Market Demand | Central Business District vs. suburbs, tenant mix, and neighboring development growth.
+ Occupancy & Lease Structure | Large vs. small leases, long-term commitments (10+ years), and rental rates.
+ Infrastructure & Site Conditions | Age of elevators, HVAC, plumbing, and potential environmental concerns like asbestos.
+ Land Value & Zoning | Cost of land and potential regulatory challenges.
Benefits to Adaptive Reuse
INCREASED POSITIONS FOR REFINANCE
You may be able to sell the building later for more than what you initially paid.
INCREASED LONG TERM OCCUPANCY
There is a waiting period of ROI, however once the project is completed one can project expected increased revenue.
PRESERVING CULTURAL HERITAGE AND HISTORICAL VALUE
Reinvigorating established cultural centers rather than tearing the building down is supported and celebrated by local government and community members.
EVERGREEN
Reusing buildings reduces embodied carbon and lowers the need to source, process, and transport raw materials. Adaptive Reuse is environmentally friendly that leans itself well to LEED or WELL certification.
INCREASED BUILDING LIFESPAN
Typical building lifespans are approximately 50-60 years with proper upkeep and updating. Adaptive Reuse projects can increase this lifespan and allows for additional ROI over a longer term.
ACCESS TO LOCAL, STATE, AND FEDERAL FUNDING AND TAX INCENTIVES
Certain Adaptive Reuse projects can be candidates for additional funding by various judicial municipalities. One example is California AB 1532 which provides special incentives for Office Building to Affordable Housing Residential. Another is a Federal Program entitled Historic Rehabilitation Tax Credit available in all state’s coast to coast.
HIGHER ENERGY EFFICIENCY
Older buildings when retrofitted during the adaptive reuse process often achieve higher efficiency standards.
INCREASED RETURN ON INVESTMENT
Create a new revenue stream when your original investment runs its course.
Workplaces
Most Adaptive Reuse projects generally start as an Office property being converted to another programmatic use. Office Adaptive Reuse also applies to refurbishing an existing Class B or Class C office asset into a new Class A office asset through property refurbishment that will extend the life of the property, prepare the asset for sale or refinancing, or increase occupancy over time providing increased revenue. We are seeing this in most cities with signature skyline defining property with a desirable address nearing the end of its lifespan. This now applies to any signature building created in the 1960s or 1970s.
This may be completed by refurbishing or upgrading the building’s skin, structural, mechanical, electrical, plumbing, parking, and or a mixture of other factors.
Typical building lifespans are approximately 50-60 years with proper upkeep and updating. Adaptive
Reuse projects can increase this lifespan and allow for additional ROI over the longer term. Many asset owners at the same time look upgrade and increase the building’s amenity mix with upgrades of common areas, outdoor spaces, building lobbies, and parking structures.
When considering changing the Buildings Asset Class several considerations determine if the project to be viable. Building Location (Central Business District or Suburbs), surrounding community growth and neighboring developments, rent rates of neighboring properties, tenant mix (large verses small leases) building occupancy rate, length of long-term leases (10 years and over) and age of infrastructure (elevators, mechanical, electrical, plumbing) all need to be considered in a feasibility study. In addition, asset owners need to consider the price of land that the building sits on and if there are any environmental concerns with asbestos or other ecological containments present.
BEFORE AFTER
BEFORE AFTER
CASE STUDY Tower 180
Although situated in a prime location in the heart of Downtown San Diego, this existing tower was hampered by its dated façade, tired common areas and lack of robust amenity spaces. Our architectural, interior, and landscape design teams worked together to harness the potential of this building to make it a desirable asset for its owner, converting it to a Class A office tower.
With respect to the original facade, we enhanced the vertical language of the exterior with a new curtainwall system and metal fins. The vertical lighting along the metal fins is reinterpreted inside with museum-like lighting in common areas that creates opportunities for art displays, similar to high-end galleries. Common areas are infused with unique, one-off details such as custom furniture and fireplaces. Accompanying the improved street frontage and common areas is a 13,500 SF roof deck terrace that offers building users elevated views of downtown.
Is Your Asset Right for Adaptive Reuse?
LET CARRIER JOHNSON + CULTURE ASSIST IN YOUR FEASIBILITY STUDY
When entertaining the idea of adaptive reuse or conversion of an existing building, there are several factors that are important to consider first.
LOCATION
Does the neighborhood offer amenities that support your desired program?
Residential buildings should be located near grocery stores, day care facilities and schools. Office buildings should be located near eateries, fitness centers, and mass transit.
NEIGHBORHOOD GROWTH
Is your site in an area that is experiencing or about to experience growth? Will new developments support your envisioned program?
AREA RENT RATES
Does the neighborhood offer amenities that support your desired program?
Residential buildings should be located near grocery stores, day care facilities and schools. Office buildings should be located near eateries, fitness centers, and mass transit.
VACANCY RATES
Look 5, 10, and 15 years out. An uptrend in vacancies means your building might not be good candidate for adaptive reuse or conversion.
ACCESSIBILITY
Older buildings are not built to modern code. Circulation paths typically need to be updated for buildings older than 20 years.
PARKING
Does your building accommodate EV parking spaces and charging ports? Can the parking deck structurally support electric vehicles? Can you feasibly insert charging stations?
BUILDING AMENITIES
If converting part of an existing building, does that building offer amenities that support and appeal to future users?
COMMUNITY CONNECTION
Can your building appeal to the community for special occasions? Can it serve as an event venue? Can it host retail pop ups? Will there be a publicly accessible entry or street front retail?
BUILDING HEIGHT
Low rise buildings are typically designated for single use, whereas high rises accommodate more programs, which requires division of those programs (secure entries, divided elevator cores, etc.)
BUILDING SYSTEMS
The age and capacity of your building’s core, infrastructure, and MEP systems will determine if you need to replace or upgrade those systems.
FLOOR PLATE
Conversions are difficult for large, expansive floor plates. Spaces deep into the floor plate don’t receive much daylight access – a particular challenge for residential use.
GREENSPACE
Opportunity for terraces and parks differs based on city regulations of set backs.
Is Your Asset Right for Adaptive Reuse?
FENESTRATION
Not all buildings have operable windows, though residential buildings require them. Different building types allow for different structural bays; the exterior building façade may not align with your desired interior program type.
ENTRIES
Does your building have appropriate security and number of entrances for your new users?
DECK HEIGHT
13’-6” is typical for residential buildings but not for other building types. Will your building accommodate required mechanical systems with its existing deck height?
TENANT MIX
What are the size of vacant spaces? Are they anchors or small leases?
CITY REGULATIONS
What zoning and permitting challenges will you face for conversion?
REGIONAL DEMAND
What building type is in the most need within the community? Currently, office buildings are in decline, but affordable housing and research spaces are in demand.
ENVIRONMENTAL CHALLENGES
Will you face seismic, or site remediation or abatement challenges?
HISTORIC CULTURAL VALUE
Some cities also prioritize the reuse and preservation of buildings with historic and cultural significance.
INCENTIVES
Are there tax incentives for the project type? Many communities give incentives to salvage and reuse buildings, which means cost savings for you.
COST COMPARISON
Is the land worth more than the reuse investment? What will your economic return and timeline be? Are the upfront planning costs more than that expected return?
Confidential Downtown High Rise
PROJECT TYPE
Office High-Rise to Mixed Use
Residential
LOCATION
San Diego, CA
SERVICES
Architecture Interiors
SIZE
27 Stories
This is a transformative adaptive reuse project that reimagines a 27-story high-rise office building into a vibrant mixed use residential community. Originally completed in 1965, the building is being thoughtfully converted to provide contemporary housing while maintaining key structural elements. This ambitious redevelopment breathes new life into an aging office tower, aligning with sustainable urban growth principles and addressing the increasing demand for residential living in the city center. The project enhances the resident experience through new rooftop amenities, improved ventilation and natural light, and the introduction of modern residential units, all while preserving the original architectural integrity.
CONSIDERATIONS
+ Structural Modifications | Adapting an existing office tower for residential use requires significant structural reconfigurations, including new floor layouts, ceiling heights, and load-bearing considerations.
+ MEP System Upgrades | Modernizing mechanical, electrical, and plumbing (MEP) infrastructure to accommodate residential needs, including new HVAC, electrical distribution, and water systems.
+ Facade and Window Replacement | Replacing fixed office windows with operable units to improve ventilation and comply with residential code requirements.
+ Stair and Elevator Reconfigurations | Removal and relocation of existing stairs and elevators to optimize access and circulation for residential occupants.
+ Parking Reallocation | Reconfiguring existing parking areas and adding Level 1.5 parking to balance residential demand while maintaining efficiency.
+ Fire and Life Safety Compliance | Ensuring adherence to high-rise safety regulations, including updated stair pressurization, fire separation requirements, and improved emergency egress routes.
+ Zoning and Code Compliance | Addressing the complexities of changing occupancy classifications from office (B) to residential (R-2) and integrating various sub-occupancies within a single structure.
+ Amenity and Public Space Enhancements | Designing engaging common spaces, including a new rooftop pool, terrace renovations, and retail enhancements, to foster community engagement and appeal.
+ Streamlined Approvals | SB 35 and AB 2011 enable faster housing approvals by removing discretionary reviews and CEQA requirements for qualifying projects, helping to accelerate residential development.
+ Repurposing Commercial Land | AB 2011 allows for by-right housing development on commercially zoned land, making it easier to convert underutilized areas into mixed-income and affordable housing.
+ Reduced Parking Requirements | A recent executive action redefines transit-oriented development, lowering parking minimums to encourage more housing near transit hubs.
This adaptive reuse project represents a forwardthinking approach to urban redevelopment, creating a dynamic residential environment while preserving and modernizing a historic high-rise.
LAX Hyatt House/Place
PROJECT TYPE
Dual-Branded Hotel
Adaptive Reuse
LOCATION
Los Angeles, CA
SERVICES
Architecture Interiors
COMPLETION
2021 SIZE
280,000 SF
13 Stories
401 Guestrooms
The LAX corridor is the gateway to Los Angeles and offers a fun layover or a home base for further travels. The LAX Hyatt House/Place is a new addition to the corridor consisting of a renovation of an existing 13-story 1960s office building.
The character of the 1960s building’s architecture and historical office environment plays a role in the essence of the interior design. A mix of bold accent colors, statement furniture pieces, and mixes of rich materials elevates the design concept.
The proximity to the international airport adds a dynamic and adventurist quality to the concept approach, resulting in unexpected designs solutions integrating masculine characteristics sprinkled with feminine accents. The ground level of the building contains the main amenities such as the lobby, reception area, lounges, F&B outlets, multi-function rooms, and guest services.
SCOPE OF WORK
The lower level was modified to include meeting space, fitness center, staff spaces, prep kitchen for the meeting room and back of house laundry and storage rooms. Work on the main lobby level included dining and bar areas, full-service kitchen, business center and lounge area. A penthouse level was added which included a pool deck, a second restaurant/bar area and kitchen. The entire electrical, mechanical, and plumbing in the building were replaced for the new hotel use.
CHALLENGES
+ Although there was a change in occupant type, the project was able to reuse the existing egress stairs with some modifications.
+ Existing elevator shafts were re-used and in some cases lengthened to extend to the lower level and new penthouse.
+ A fire in the LADWP electrical vault room at the start of construction required the electrical system be redesigned to compatible with more robust switch gear.
+ Two atriums were cut into the building to allow additional guest rooms to be in the center of the building. The atriums required an extensive smoke removal system for building safety.
+ The building’s concrete waffle slabs were not in alignment from floor to floor, causing re-design of several bathroom stacks to thread the plumbing down through the building during construction.
BEFORE AFTER
SKANDIA CONSTRUCTION
Solara Lofts
This mixed use project converted an existing, underutilized office building into a contemporary residential condominium project. Offering unique views of the San Diego bay, Balboa Park, and the city skyline to the south, the project was the first phase of a potential three-building complex. Phase II anticipates a high rise condominium tower on the southeast corner of the same full-city block, and Phase III is planned to utilize the northeastern section. The eight-story building now includes a day spa for residents, a racquetball court, a fitness center with showers and a sauna, and resident storage space.
PROJECT TYPE
Office to Residential
LOCATION
San Diego, CA SCOPE Feasibility
77 Units
4 Levels Below-Grade Parking
CJ+C completed a feasibility study and unit test fits for an office-to-residential building conversion in downtown San Diego. Our test fits explored options for inserting 45 studio, one- and two-bedroom units on levels two through six in the existing building shell while reserving the ground floor for multiple retail tenants using a live-work arrangement.
PROJECT TYPE Office to Residential
LOCATION
San Diego, CA
SCOPE
Feasibility Study
SIZE 57,000 SF 46,500 SF Residential 8,000 SF Retail
COMPLETION 2023
PITZER COLLEGE
Robert Redford Conservancy
PROJECT TYPE
Infirmary to Higher Education + Labs
LOCATION
Claremont, CA
SCOPE
Adaptive Reuse
Programming
Architectural Renovation
Interior Renovation
Site Improvements
SIZE
12-acre site
10,500 SF Interior Renovation
3,000 SF Exterior Renovation
CONSTRUCTION COST
$5,400,000
COMPLETION 2018
AWARDS
American Institute of Architects (AIA) Los Angeles, Design Award
Committee for the Environment (COTE), Merit Award, Claremont Heritage, Preservation Award
USGBC LA Chapter, Project of the Year and Honor Award (SIA Energy + Atmosphere category)
Located on 12-acres across the main campus of Pitzer we renovated and repurposed an existing infirmary building as the Robert Redford Conservancy (RRC)— a facility containing science classrooms, offices, laboratories, meeting rooms, and an art studio. The renovated building is the first higher education building in California and the fourth in the world to be Zero Energy certified by the International Living Future Institute. With its inherently passive design and extensive natural landscape, the RRC is a destination which recognizes the past, educates about the present, and fosters collaborative learning across disciplines in a dynamic space for the future.
EDUCATION
FIRST
International Language School
The Education First project involved redevelopment of the former Cabrillo Hospital site in the Midway area of Point Loma, acquired by Education First. CJ+C redesigned the existing building into a new EF International Language School campus. The new facility of 183,000 SF will accommodate 600 students living on-site, inclusive of dormitory rooms, a full service cafeteria, classrooms, an exercise & yoga center, a projection room with theater-style seating, and laundry area. The site will also be re-designed to incorporate a soccer field, tennis courts, pool and open patio areas, with full landscape.
PROJECT TYPE
Hospital to Private Education
LOCATION
San Diego, CA
SCOPE
Adaptive Reuse Programming
Architectural Renovation
Interior Renovation
FF&E
SIZE
183,000 SF
CONSTRUCTION COST
$18,967,382
COMPLETION 2016
211 SAN DIEGO
211 Headquarters
PROJECT TYPE
Research Lab to Offices
LOCATION
San Diego, CA
CONSTRUCTION COST
$2,400,000
SIZE
28,866 SF
SERVICES Programming Space Planning Architecture Interior Design FF&E
COMPLETION 2016
211 San Diego is an agency that connects San Diego County residents with information about the community resources. CJ+C was retained to renovate an existing 2-story, concrete tilt-up research and development building and transform the space into their new state-of-the-art headquarters office. The new space includes collaborative open office areas, community and company meeting rooms, specialized suites for community partners, including County of San Diego Disaster Response Operations.
CO-MERGE
Flexible Downtown Office
Co-merge launched their flexible hoteling office concept in a one-story 1965 building in downtown San Diego’s Civic Center area that sat empty for 15 years. The revitalization of the building included an exterior face lift and full interior renovation, including asbestos abatement, transforming a vacant property to a hip alternative office environment. CoMerge also offers multiple levels of outdoor space— a green front “porch” and rooftop garden, enabling members to feel part of the activity generated from the urban surroundings without leaving the grounds. The project was designed with eco-friendly features in mind such as use of materials with high recycled content, daylighting strategies, and water conservation through use of drought-tolerant landscaping.
PROJECT TYPE
Vacant to Co-Work Space
LOCATION
San Diego, CA
SCOPE
Interior Design Signage + Wayfinding
COMPLETION
2011
SIZE
9,00 SF
AWARDS
Orchids + Onion Winner for Adaptive Reuse
“The design team took a horrible building and, utilizing space, light and color, transformed it into something special.”
— Union Tribune October 27, 2011
The Headquarters at Seaport Village
This site had sat vacant for over 25 years and is on the National Register of Historic Places, which added to the challenge of transforming the 1930s police headquarters into a collection of 30 upscale shops and restaurants. We developed a strong relationship with the Port of San Diego and State Historic Preservation Office to identify historic elements to be kept and restored and design strategies for non-historical additions. To maintain the Spanish Colonial style we reused 27,500 roof tiles, large ornate wood doors, ironwork, light fixture and skylights, windows and 15,000 SF of historic courtyard pavers. We opened up the building with courtyard and interior spaces to accommodate the site’s new life as a pedistrian-focused retail district.
PROJECT TYPE
Police Headquarters Jail to Retail Hospitality
LOCATION
San Diego, CA
CONSTRUCTION COST
$17,200,000
SIZE
100,000 SF
4 Buildings
SERVICES
Historic Restoration
Architectural Addition
COMPLETION
2013
AWARDS
Orchids + Onions
Winner for Adaptive Reuse
AIA San Diego
Hisotric Preservaiton Award
Save Our Heritage Origanization People
In Presrevation Award for Commercial Renovation
TERRAMAR
SAN DIEGO UNIFIED PORT DISTRICT
Stay Open Micro Hotel
CJ+C completed schematic design of a commercial space to hotel conversion on a 3-acre site near the San Diego airport. The existing District Annex Building was reimagined as a low-cost micro-accommodations lodging facility with a lobby, bar, and daylit atriums. Our design extends the existing floor plate and adds a second story to create space for an additional 12 rooms along with an activated rooftop.
Rooms can accomodate 8 to 12 people, each with their own POD, with shared shower and bathroom facilities. Private rooms are available at a slightly higher price point. The site’s proximity to the airport and rideshare options makes it ideal to house a hotel while mitigating traffic congestion and the need for parking.
Restricting this design to the annex building leaves the adjacent 2-acre parcel available for additional redevelopment that would compliment the new hotel.
PROJECT TYPE
Commercial to Hotel
LOCATION
San Diego, CA
SCOPE
Architecture
Programming
SIZE
220 beds
6 private rooms
SRO HOUSING CORPORATION
Panama Hotel
PROJECT TYPE
Hotel to Affordable Housing
LOCATION
Los Angeles, CA
SCOPE
SIZE
37,800 SF
CONSTRUCTION COST
$12,000,000
The Panama Hotel serves the housing needs of a transient population of seasonal laborers, emergency shelter for homeless people and others on the margins of society. The new renovation/conversion from historic hotel to affordable housing provides a safe, comfortable, and sustainable environment while respecting the historic character of the existing structure. Our team worked to restore features of the building’s brick envelope, removed the interior system of floors, walls, and roof, and provided a new structure within the existing envelope that improves the acoustic, thermal, and structural performance of the building.
The original 1920 Panama hotel had 219 boarding room units comprised of a single room with sink, bed, dresser, and table with shared bathroom facilities off hallways. These were converted to 72 units with individual bathrooms, small kitchenettes and closets.
BEFORE AFTER
BRIDGEPOINT EDUCATION
University of the Rockies
PROJECT TYPE
Retail Mall to Academic Offices
LOCATION
Denver, CO
SCOPE
Interior Architecture
Interior Design
FF&E
Environmental Graphics
COMPLETION
2012
SIZE
52,200 SF Total
20,600 SF Education Center
29,600 SF Admin Center
2,000 SF Multipurpose Room
Overlooking Denver’s famous tree-lined outdoor pedestrian promenade on 16th Street, the new University of the Rockies instructional facility and administrative headquarters is housed within the shell of a what was once a department store anchoring the Tabor Center retail mall.
The primary goal of this project was to increase the University of the Rockies’ instructional capacity and physical presence for its School of Organizational Leadership and to consolidate the University’s administration into a new central headquarters and learning center that would showcase the institution’s unique identity and redefine the graduate school experience for students specializing in social and behavioral science.
The Village at Totem Lake
An aging 26-acre regional shopping mall sat at the edge of Kirkland’s metro area, the adjacent forest, and Totem Lake. The mall faced a fate similar to that of many other American shopping malls; its popularity steadily declined over the past twenty years as it lost tenants and visitors. Much of the property sat vacant for over a decade. The developers aimed to create a walkable village that reflects the surrounding wooded landscape, fosters a sense of community that is unmistakably rooted in the PNW, and revives an undesirable area back to its height of civic importance.
The redevelopment maintained retail establishments at the ground level with an enlivened pedestrian experience. A new urban promenade now centers the village and leads towards a green plaza accented with hard and softscapes. The residences above boast a variety of unit types and views overlooking the streetscapes below and land and city scapes beyond.
PROJECT TYPE
Commercial to Mixed Use
Residential
LOCATION
Kirkland, WA
SCOPE
Architecture
Programming
SIZE
1,400,000 SF
