Choosing Between an Existing Structure or Greenfield Construction

Choosing Between an Existing Structure or Greenfield Construction

Acquiring an existing building shell to house manufacturing operations can seem like a real time- and money-saver to companies. But is it really? O'Neal was recently featured in Area Development magazine. O'Neal's Brian Gallagher authored: Due Diligence Concerns When Choosing Between an Existing Structure or Greenfield Construction.

Abandoned structures and brownfield sites proliferate in cities across the nation. Sometimes these abandoned mills, factories, and speculative (spec) buildings have become such a burden to counties and economic development organizations that they are being given away for free — or at very low cost — to attract companies and jobs. Acquiring an existing building shell to house manufacturing operations can seem like a real time- and money-saver to companies. But is it really?

Existing buildings can provide companies with suitable solutions for their manufacturing operations. This approach can be faster and less expensive than building a new facility in many scenarios. However, many times, the cost of adapting existing features far outweighs the cost of investing in new construction on a greenfield site. Before committing to the purchase of an existing structure, owners should seek an independent consultant, in the form of an engineering/procurement/construction contractor (EPC) or architect, during the site assessment to conduct a thorough due diligence process and code analysis, as well as to address several aspects of the facility.

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