A 2023 report by UBS states that partial retrofits can create energy savings of 10-15% in commercial builds and up to 30% for residential projects, while “deep” retrofitting work can save 40–60% of energy use in commercial developments and 60–90% in residential buildings.
Here, Steve Clem, Skanska’s senior vice president of sustainability, tells GCR about the challenges and what they learned.
Can retrofitted buildings meet occupants’ needs as well as new-builds?
They can, provided the renovation is approached thoughtfully and with the occupants’ needs in mind from the outset, while accounting for the fact that the needs of each tenant are different.
What matters is intent.
A well-executed retrofit, backed by the right investment in systems, envelope and layout, can be elevated into high-performing, modern office space that competes directly with new development, often while offering tenants a faster path to occupancy and avoiding a significant portion of the embodied carbon associated with demolition and ground-up construction.
What are the big challenges in repurposing existing buildings?
There can be significant considerations when repurposing an existing building and each project needs to be evaluated based on its specific conditions. Zoning and entitlement requirements are one piece of the equation. Building codes are constantly evolving and bringing an older asset up to current standards for a new use often requires deep retrofit work, including upgrades to fire and life safety systems, seismic reinforcement and meeting accessibility requirements such as the Americans with Disabilities Act.
Teams may also consider existing floorplate depth, floor-to-floor heights, column spacing, access to natural light and the location of existing building systems, which can all determine whether a structure is well suited to a new use. The key is to identify those constraints early in the planning process so the design and construction teams can determine what is feasible and develop solutions around the existing conditions.
Is it cheaper to retrofit?
There is no one-size-fits-all answer on cost. The economics depend heavily on the condition of the existing building, the extent of the renovation and how much of the structure and existing structures can be retained.
Renovation can offer meaningful cost advantages, but existing conditions can also introduce complexity and uncertainty that need to be accounted for early in planning. Cost varies significantly depending on the scope of renovation and the current condition and age of the building but, in many cases, renovation can be more cost effective than ground-up construction.
The trade-off is often timeline: renovations can take longer and require more careful phasing and planning, especially if the building stays partially occupied during the work.
From a carbon perspective, there is a strong case for preserving and reusing existing buildings when feasible. Our work with the National Trust for Historic Preservation has demonstrated the lifecycle carbon benefits that can come from building reuse. Reusing an existing structure allows teams to avoid a significant amount of the embodied carbon associated with demolition, manufacturing and transporting new materials, and ground-up construction.
The right solution ultimately requires looking at cost, carbon, schedule and long-term building performance together rather than any one factor in isolation.
What did you take from your experience with the Empire State Building?
Our experience at the Empire State Building gave us firsthand experience delivering complex construction where maintaining ongoing operations was critical in an occupied, iconic asset.
Moving forward, it will inform how we approach future projects that are complex and occupied and require integration with existing building systems.
It will also reinforce the importance of early planning, close coordination with building management and tenants, and careful sequencing of work. Those lessons are directly applicable to future renovation and modernisation projects, particularly when owners are balancing operational needs, historic considerations and ambitious sustainability and performance goals.
How hard is it to integrate smart building technologies in a retrofit?
It’s largely case-by-case, since every building’s systems, layout and condition are different. The first step is understanding the condition and capacity of the existing infrastructure, including HVAC, electrical systems, controls, metering and the building envelope, and then identifying where upgrades can have the greatest impact on performance and the occupant experience.
One principle we apply consistently is looking at those systems holistically rather than treating individual technologies as standalone upgrades. That means considering how building controls, energy-efficient equipment, sensors and other technologies can work together, while also evaluating passive strategies and opportunities to reduce material use. The goal is to invest in solutions that improve performance, efficiency and usability over the long term, rather than incorporating technology simply for technology’s sake.
What advice would you give to others undergoing similar projects?
Start early and assemble the right team. Successful renovation and adaptive reuse projects depend on close collaboration between the owner, contractor, engineers, architects and trade partners, particularly because existing buildings often present conditions that cannot be fully understood until work is underway. The earlier the whole team is engaged and aligned, the better it can identify solutions that help the owner achieve their sustainability goals.
The other piece is transparency. Renovation and retrofit projects can surface unknowns that ground-up construction doesn’t, so open communication among the team and with the owner throughout the process matters as much as the plan you start with. Realistic contingency planning and timely decision-making are also critical, giving teams the flexibility to adapt as conditions are uncovered.
How do you organise low-carbon materials and reuse materials?
Material selection is a big lever we have at our disposal for reducing a project’s embodied carbon and we treat it as a data-driven process. We use the embodied carbon in construction calculator tool to identify lower-carbon versions of common building materials, then incorporate those options into a carbon model for the project. That gives us a way to compare material choices early, before decisions are locked in, and to track the embodied carbon impact of what we’re specifying against what we might otherwise have specified.
On renovation projects, that process begins even earlier by asking what can be retained and reused before determining what needs to be replaced. Existing structural elements, finishes and other materials can represent both a carbon- and resource-saving opportunity when they can safely and effectively remain in place. From there, teams can evaluate new materials based on factors such as embodied carbon, availability, performance and project requirements. The earlier those decisions are incorporated into design and procurement, the more opportunity there is to make a meaningful impact.
What’s the best way to align the needs of the tenant and owners on both large and small scale projects?
For us, it starts before construction even begins, with an alignment workshop where project goals and desired behaviours are clearly defined by everyone at the table. Bringing the owner, tenant, design team and contractor together early allows everyone to clearly define the project’s priorities, operational requirements and desired outcomes. That shared foundation makes it much easier to navigate decisions later, when tenant and owner priorities don’t automatically overlap.
From there, it’s about maintaining that alignment throughout the project. We monitor project health through routine stakeholder check-ins, use collaborative delivery methods, and make sure teams are incentivised in a way that keeps everyone working toward the same outcome rather than competing priorities. Whether the project is a single-floor fit-out or a large-scale repositioning, creating a structure for decisions to be made quickly and transparently helps keep everyone focused on the same end goal.
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