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Commercial Deconstruction  --  January 27, 2021

Benefits of Commercial Deconstruction

Investing in commercial deconstruction leads to higher property valuations and “greener pastures” as a differentiated leader in real estate development. New commercial real estate development typically has been about creating a “clean slate” via demolition before developing a property. Realizing users appreciated and generally paid higher rents for unique properties that were re-zoned/repurposed, investors capitalized on renovation, and the overall value of a project increased while creating vibrant results.

Utilizing deconstruction, and with the coming “green movement,” end users increasingly will endorse these “green” projects and pay up to live, work, and play in these locations. This creates significant public relations benefits, marketing value, and creates a differentiator for developers who capitalize, and use deconstruction in their projects. Choosing deconstruction also provides an opportunity to earn LEED points and create a “green” project image.

Why Choose Deconstruction?

Three great reasons:

  1. Increases a project’s long-term value.
  2. Expanded renovation scope options.
  3. “Green” differentiation, PR, & marketing.

Materials salvaged reduces the cost of disposal, creates affordable building materials for the community, extends the life of “sound” building materials and equipment, all while reducing the carbon footprint of the project.

Tax benefits, net/net, would add back capital to the project budget. This can potentially add “on the cusp” amenities or expand the renovation scope, improving the average rental income over the life of the project, resulting in increased cash flow for higher NOI and IRR.

Benefits of Deconstruction:

  • Captures hidden tax benefit value in salvageable materials.
  • Opportunity to increase capital budgets for renovation.
  • Promote a “green project.”
  • No additional work for developers.

Green Donation Consultants facilitates the whole deconstruction process through with the non-profit and the deconstruction contractor. We complete the appraisal process and are involved in coordinating the deconstruction process, from beginning to completion.

Interested in commercial deconstruction? Contact our team at Green Donation Consultants. Call 800-870-3965 today!

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