REURBANIZATION RE-IMAGINED: Shaping the Future of Urban Landscape – Insights from Leading Experts

REURBANIZATION RE-IMAGINED: Shaping the Future of Urban Landscape - Insights from Leading Experts

December 6, 2023

As the world grapples with the complexities of urban development, experts at the ULI Poland Places+Spaces event offered insights that could change the future of urban landscape: “The Future of Buildings – Convert or Tear Down”. The event explored the pressing need for new buildings and the reuse of existing structures, delved into the multifunctional transformation of commercial spaces in the market, and unraveled the potential of converting or demolishing structures in the quest for a sustainable and vibrant urban future.

ULI Poland’s dynamic event delved into the challenges of urban development. Marcin Juszczyk, ULI Poland Chair, emphasized the importance of collaboration, sharing insights, and addressing trends. The focus was on the conversion or demolition of buildings. He highlighted the large and growing stock of obsolete structures and questioned their future. The broader theme included discussions on affordable housing and the feasibility of repurposing commercial assets.

“At the heart of the report is an examination of the challenges faced by aging structures in the face of changing consumer preferences and technological advances. From ‘right-sizing’ struggles in retail and hotels to the inadequate adaptation of older industrial structures to modern demands, the report presents successful conversion as a solution not only to address housing shortages, but also to breathe new life into communities,” said Anita Kramer.

Highlighting the challenges

Keynote speaker Anita Kramer, Senior Vice President, ULI Center for Real Estate Economics and Capital Markets, set the stage for an insightful exploration of the future of buildings in the ever-evolving urban landscape. Anita Kramer’s exploration begins with a fundamental question: Can the repurposing of commercial structures into housing be the panacea for the current housing crisis? At the heart of her presentation is the report “Behind the Facade,” which critically examines the feasibility of converting obsolete office, retail, hotel, and industrial properties into multifamily housing. The report highlights the increasing obsolescence of older Class B/C office buildings in the post-pandemic era.

To gain a comprehensive understanding of the feasibility of conversion, the Urban Land Institute in cooperation with the National Multifamily Housing Council (NMHC) conducted in-depth interviews with developers involved in nearly 30 conversion projects across the United States. Profiling diverse projects ranging from single-use offices to unconventional athletic clubs, the insights gained offer universal lessons on the intricacies of the conversion process.

Anita Kramer’s presentation, backed by the report’s findings, highlights the challenges, opportunities, and universal lessons learned from successful conversions. These invaluable lessons serve as a promising guide for stakeholders navigating the maze of commercial adaptive reuse, and represent a meaningful contribution to the ongoing fight against the housing crisis.

“Supported by key stakeholders Emerige and Nuveen Investment, the initiative prioritizes sustainability, social inclusion and cultural enrichment. Core components include densification for economic value, strategies to open up spaces, urban agriculture, inclusive public spaces, recycling, and adaptive reuse. With a commitment to cultural enhancement and investment support, this project sets a precedent for holistic urban renewal that emphasizes the city as a sustainable and culturally enriched resource,” highlighted Uli Seher.

Recycled city, recycled projects

Uli Seher’s visionary perspective introduces the concept of the Recycling City as a response to the impending challenges of rapid urbanization expected by 2050. With projections that two-thirds of the world’s population will call cities home, Seher advocates innovative solutions that address mobility, pollution, and the evolving nature of urban spaces. The key is a holistic approach that includes densification, improved public transportation, and a reduction in individual motorized traffic to create more green space and improve overall urban quality.

ULI Seher, Founder, BRS Architectes, Dipl. Ing. Architect Urban Planner, introduced the “Renouvellement Morland” project, led by renowned architects David Chipperfield, BRS Architectes Urbanistes, landscape designer Michel Devigne, and artist Olafur Eliasson, which envisions a transformative future for urban spaces.

“The transformation of urban spaces requires a holistic vision. Our experience with HOP and DIUNA goes beyond renovation; it’s about creating vibrant, sustainable environments. We’ve not only rejuvenated physical spaces, but also fostered a sense of community and inclusivity. This goes beyond the visible changes – it’s about building a legacy of resilience and relevance,” stated Witold Zatoński.

Redefining Older Office Buildings

Witold Zatoński, founder of Syrena Real Estate, provided deep insights into the sustainable transformation of older office buildings in his presentation “Redefining Older Office Buildings: A Sustainable Approach to Urban Development.” Focusing on structures such as HOP and DIUNA, Zatoński unraveled the dynamic journey of revitalization.

The narrative showed the evolution of Marynarska Business Park into DIUNA, emphasizing the need to adapt to changing market dynamics in a highly competitive real estate landscape. Details of the renovation programs for HOP and DIUNA were explored, highlighting significant improvements to lobbies, common areas, green spaces and state-of-the-art conference centers. Zatoński’s presentation emphasized sustainable urbanization, introducing artificial intelligence into building management, innovative water retention systems, and strategies to eliminate heat islands. The transformative vision aimed to transcend traditional redevelopment models and envision vibrant, green urban spaces. This commitment to sustainability aligns with broader goals of creating resilient structures and fostering a dynamic, thriving community. Witold Zatoński’s presentation offered strategic insights into the challenges and successes of redefining older office buildings to contribute to a sustainable and resilient urban future.

(from the left) Witold Zatoński, Founder of Syrena Real Estate, Uli Seher, Founder of BRS Architectes, Bartosz Marcol, Sustainability & ESG Manager at Globalworth, Joanna Wojnarowska, Global Deputy Head of Real Estate at DWF and Marcin Klammer, Founder of Investment Design.

Balancing conversion and demolition in real estate development

In a subsequent panel discussion, distinguished real estate leaders navigated the complexities of converting or demolishing older office buildings. The distinguished panel included Joanna Wojnarowska, Global Deputy Head of Real Estate at DWF; Uli Seher, Founder of BRS Architectes; Bartosz Marcol, Sustainability & ESG Manager at Globalworth; and Witold Zatoński, Founder of Syrena Real Estate. The conversation, skillfully moderated by Marcin Klammer, Founder of Investment Design, shed light on key issues shaping the urban development landscape. “Our esteemed panelists bring diverse perspectives that are critical to navigating the complexities of urban development in the face of conversion and demolition decisions”, emphasized Marcin Klammer.

Joanna Wojnarowska, a legal representative, emphasized the importance of considering conversion as a viable option. An advocate for the preservation of historic buildings, she emphasized the societal benefits and delved into the legal aspects, including existing tax incentives and community-led measures. “Preserving historic buildings through conversion is consistent with societal benefits and community growth, making it a viable option for thoughtful urban development”, claimed Joanna Wojnarowska.

Bartosz Marcol, Head of Environment and Sustainability at Globalworth, addressed the environmental and regulatory aspects of real estate development. Acknowledging current gaps, he expressed hope for future developments and emphasized the need for robust regulatory frameworks to drive green initiatives. “Sustainability is the cornerstone. We expect more effective regulatory frameworks to drive green initiatives and sustainability in real estate development”, stated Bartosz Marcol.

Uli Seher, founder of BRS Architectes, shared a compelling story about a Paris project that shed light on the city’s unique permitting strategy. Paris decided to sell land not just based on the highest bid, but on the merits of the proposed project. Uli explained how urban agriculture and environmental considerations became key criteria for plot selection, reflecting a progressive approach to sustainable urban development.

“The new mayor asked himself how to deal with permitting, and he came to the conclusion that you can’t permit everything. Because if you allow too much, you slow down the market. The city took 20 plots out of its portfolio and decided to sell them not just for the best price, but for the best project. The plan was to make the best social and environmental offer” said Uli Seher. “In our Paris project, the pre-regulation in the land sale contract eliminated the need for extensive permitting. Obtaining a quick permit in Paris, with specified building conditions, accelerated the construction process. Adherence to predefined project commitments facilitated a seamless transition from permit approval to project initiation. The ongoing challenge, however, is managing these commitments throughout construction, with potential consequences for non-compliance. The risk arises if these commitments aren’t met by the end of the project, but no one has tested those waters yet”, he added.

Witold Zatoński, representing the developer’s point of view as the founder of Syrena Real Estate, added depth to the discussion. He shared his positive experience with redevelopment projects, noting the faster time to market and reduced risks associated with redevelopment compared to new construction. Witold highlighted the financial benefits and pragmatic considerations that make refurbishment an attractive option for developers. “Refurbishment projects offer a faster route to market and reduced risks, which is in line with financial objectives and pragmatic considerations for developers”, claimed Witold Zatoński.

The panel discussion provided an in-depth examination of the challenges and opportunities in deciding whether to redevelop or demolish older office buildings. Addressing legal, environmental, regulatory and practical issues, it provided valuable insights into the complex decision-making processes involved in real estate development. In closing, moderator Marcin Klammer thanked the participants for their insightful contributions. He acknowledged the diverse perspectives shared, ranging from urban development strategies to legal implications and environmental considerations.

“It was truly inspiring and demonstrated the best practices that define ULI. Thank you all for your active participation, and I encourage you to bring your friends to our future events. Let’s grow our community and share these enriching experiences. Stay tuned for our upcoming events, with the next Places+Spaces scheduled for February. Your input is vital, so don’t hesitate to contact us if you have compelling topics, trends or challenges you would like us to address”, concluded Marcin Juszczyk.

A special thanks to our partners, both corporate and event sponsors, for their invaluable support. Your partnership makes these events possible and benefits us all.