What is Better For the Environment: Demolishing and Rebuilding vs. Renovating Commercial Buildings

Today, change is more noticeable in the power and transportation industries, as much as in the real estate industry

Roman Reitman
6 min readSep 7, 2021
Photo by Cindy Tang on Unsplash

Sustainability is not just fleeting propaganda — it’s a global movement. As the effects of climate change are getting more undeniably evident, people are more environmentally conscious now. Today, change is more noticeable in the power and transportation industries, as much as in the real estate industry.

State regulations are changing for the better, albeit more stringent, regulations before climate change effects become irreversible. Real estate is transitioning to green real estate — where green technologies meet the real estate world. Building certifications like the Leadership in Energy and Environmental Design or LEED by the U.S. Green Building are the gold standard when it comes to more environment-friendly buildings.

To comply with the new regulations, it raises the questions:

  • Is it better to renovate existing buildings and upgrade them to a greener version?
  • Or is it easier to demolish substandard buildings and rebuild them from scratch?

Which is Better for the Environment?

Most of the time, renovating commercial buildings is much better for the environment compared to demolishing and rebuilding.

It’s common knowledge that the reduce-reuse-recycle approach is what’s best for the environment. Even if the goal is to improve building efficiency, demolishing buildings is not aligned with this approach. Although, there may be certain instances where demolishing and rebuilding are more feasible. But let’s touch on that at a later part.

For now, let’s go ahead with the factors that make renovating way better for the environment.

Here are the reasons why:

Lesser Costs and Quicker Turnaround

Renovation is a selective process. The outdated systems will be ripped off and replaced with more efficient ones. But the reusable materials could be left intact, or reinforced with more foundation. Compared to demolition and rebuild, renovation is a quicker and less costly process. New homes use 4 to 8 times more resources than renovated homes.

Source: 2019 Journal Article — “Energy Renovation versus Demolition and Construction of a New Building — A Comparative Analysis of a Swedish Multi-Family Building”, by La Fleur, et. al.

A 2019 study conducted in renovating vs. rebuilding old buildings in Sweden showed that the life cycle costs (LCC) are higher in demolished and rebuilt buildings compared to the renovated ones. According to the paper, LCC is defined as “the present value of the current and future costs of the construction, installation, maintenance, and operation of a building during its life cycle”. Much of these costs come from rebuilding interiors and technical installations from scratch. Meanwhile, renovating eliminates these types of costs.

It should be expected that upfront costs will be invested to segregate recyclable from end-of-life materials. But in the long run, recycling through renovations is less expensive. It’s also less disruptive to the neighborhood.

Reduced Waste

After demolition, all the waste that’s left behind is thrown away as municipal dump. Specifically, this type of waste is categorized as construction and demolition waste (CDW). This takes up space in landfills by about 40% of solid waste in the U.S per year, which makes the soil and underground water susceptible to pollution. According to data gathered between 2010–2015, the top 3 major contributors of CDW in landfills are China, India, and the U.S.A.

Source: 2018 Journal Article — “Construction and demolition waste generation and properties of recycled aggregate concrete: A global perspective”, by Akhtar, A. & Sarmah, A. K.

What makes up most of CDW? Here’s a sample distribution from a 2019 study conducted in Dhaka, Bangladesh.

Source: 2019 Journal Article — “An empirical study of construction and demolition waste generation and implication of recycling”, by Rashidul Islam, et. al.

Through renovation, we can recycle some of this CDW from occupying landfill space. According to EPA, some C&D materials that can be recycled are:

  • Removable items such as fixtures, appliances, doors, and hardware
  • Scrap wood and wood cutoffs
  • Crushed gypsum
  • Brick, concrete, and masonry — the major CDW materials
  • Exterior wall insulations
  • Paint and packaging materials

Although, some construction and green demolition companies are making a big impact. For instance, the Lazarus Building renovation in Ohio was the first LEED-certified building that saved 11,000 tons of debris out of landfills. Another example is a Seattle-based company called The RE Store. Four of its projects received a 70–97% recycle and reuse ratings from EPA in 2007.

Lower Carbon Footprint

Anything from the supply chain process that consumes fossil fuel energy has a carbon footprint. This includes all stages, from material extraction, logistics, and transportation, fabrication, assembly, etc. From the environmental point of view, there’s what they call the “embodied carbon” of building materials. It refers to the greenhouse gas emissions during construction and other related activities.

Green buildings use low embodied carbon content materials such as timber, water-based solvents, and lime-based mortar. But when new materials are introduced in rebuilding, it also increases additional embodied carbon emissions.

Conserve Energy

Carbon footprint is closely associated with energy consumption. Only, the energy aspect’s scope is more holistic. Whereas embodied carbon is the carbon footprint of the building materials, embodied energy is all about the energy requirements needed during the renovation or rebuilding. It doesn’t have to come from fossil fuels, it can come from other sources such as renewables.

Source: 2015 Journal Article — “Embodied energy on refurbishment vs. demolition: A southern Europe case study”, by Gaspar, P. L., & Santos, A. L.

A 2015 case study on a 40-year old existing house in Portugal was conducted. It has reached the end of its service life. The possible courses of action — (1) demolishing and rebuilding, and (2) a major renovation — were compared in terms of embodied energy. The results show that a major renovation is a more sustainable course with less matter, less embodied energy consumed, and less CDW.

In another study conducted in Germany, renovated homes that were upgraded to the new standards were twice more energy efficient — reducing over 80% of energy consumption.

But Renovation is NOT ALWAYS Better Than Demolishing and Rebuilding

There are certain instances when sometimes, demolishing/rebuilding is NOT a bad idea.

  • When the building has been too damaged that renovation costs equal rebuilding costs. Or when there are more energy savings when you build from scratch.
  • As long as green construction or green demolition is implemented. According to EPA, green construction is building with sustainable materials. It should protect the environment by generating less waste and fewer carbon emissions which extends to its daily operations.
  • When demolishing old buildings can improve the overall environmental efficiency.

It boils down to proper planning and assessment of the project. When demolish-and-rebuild is more favorable than rebuilding, you must remember these:

Find Green Contractors

Aside from the LEED certification, there are several varieties of green building programs. Some examples to mention are the:

  • National Association of Home Builders
  • National Association of the Remodeling Industry
  • Associated Builders and Contractors
  • Green Advantage
  • ENERGY STAR

Just a note of caution — a building company doesn’t have to be green-certified even if they say their services are. So always practice due diligence by cross-checking if the company’s contractors have green certifications. This gives added security that you’re working with a knowledgeable contractor that can deliver the promise of the benefits of green design and construction.

Opt for Green Demolition

Green demolition is deconstructing a building but recycling or reusing its elements so it doesn’t end up in landfills. Compared to traditional demolition, it’s much more time-consuming and expensive — about $10,000 more per job. Careful recovery of reusable materials such as windows, doors, appliances, fixtures, beams, wood floors, carpets, roofing materials, piping, bricks, aluminum siding, and tiles can save you later on with future projects.

Take Advantage of Tax Credits

The U.S. government has incentives for green building projects. Aside from saving on landfill fees, you can get tax credits if you donate the recovered materials. Some more examples of tax breaks that you should know of are the following:

  • Save up to $1.80 per square foot when energy consumption from heating and cooling is reduced by 50%
  • Additional deductions of $0.60 per square foot involving lighting system and building envelope
  • Up to 30% investment tax credits when solar power or fuel cells are utilized
  • 10% investment tax credits when using heat and power systems, and geothermal pumps

Bottomline

Overall, renovating has lesser environmental impacts compared to demolishing and rebuilding. As much as possible, let’s apply the reduce-reuse-recycle approach in our sustainable solutions. However, when certain situations can’t help it, green demolition is the next best thing. And while building companies are at it, they should maximize the green technologies.

--

--

Roman Reitman

Proficient Investor concentrated on ethical investments and green technologies.