How paradigms shift. As recently as 10 years ago, abandoned buildings and closed industrial plants were simply bulldozed to the ground and taken to a municipal landfill. This method of clearing a property for reuse was prevalent from the late 1970s, and was “just the way things were done.” In most cases the equipment was auctioned, columns and piping were scrapped, but little else. The demolition process was a net expense, and in some cases a large expense.

Today, the valuation of brownfields and underutilized industrial properties is much more sophisticated. The main value always remains in the property itself. However, the renewal of brownfield buildings has come into focus as a separate economic value proposition, largely through the lenses of sustainability. Factors forcing a more sophisticated approach include sensitivity to asset recovery, environmental condition resolution, health and safety protection, and bonding and insurance requirements. ...

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