The Virginia Preservation Toolkit

Economics for Developers

The cost of rehabilitating older buildings typically runs 25-33 percent less than comparable new construction, and it costs more to demolish a building than to rehabilitate it. In cases where costs between construction and rehabilitation are equivalent, the historic building usually offers more amenities, such as a centralized location, greater height or volume, aesthetically pleasing architectural details, and time saved in construction. These amenities help land tenants, which results in higher occupancy rates and rents.