Historic buildings connect us both to our past and to the cultures of the people who shared our home regions before us. They accomplish this in ways that few other relics can. Historic buildings are worth keeping around for the cultural significance and architectural achievements they represent. The cost of a large-scale restoration, however, can make us question the value of that worth.
Historic building restoration does not need to break the bank. In fact, there are material and process solutions that can preserve the historic charm of those buildings while making them more energy efficient at the same time.
In this guide, we will explore some of the economic benefits of building preservation projects, as well as some of the ways we can make the financial burden more palatable.
- Why Historic Building Restoration is Worth It
- Cost Factors in Large-Scale Historic Restorations
- The ROI on Preservation vs. Replacement
- Financial Challenges and Solutions
- Key Takeaways for Stakeholders
- Contact Climate Seal
Why Historic Building Restoration is Worth It
Restoring historic buildings not only preserves our architectural innovations and cultural heritage, but it also represents an investment in the environment. This is due to the fact that new construction involves consuming scarce resources at a very high level. We burn vast amounts of energy in extracting materials from the earth to obtain new building materials. The more we can limit these practices, the better the environmental outcome.
On the other hand, a historic building renovation is much more sustainable. While projects sometimes seem spendy on the front end, a deeper look reveals compelling financial advantages to restoration.
Cost Factors in Large-Scale Historic Restorations
When we shop contractors for restorations, we often get quotes that may seem expensive up front. Those quotes include both the materials and labor we need to bring our buildings up to code. By understanding these costs, it’s easier to see where we can save by going with cost-effective historic renovation products and processes.
Labor Costs
One of the biggest cost factors on any construction project is going to be labor. In fact, it’s often the single largest expense. We must pay skilled artisans and specialized contracting professionals to demolish the old and install the new. However, by utilizing cost-effective solutions that you can install yourself, you can save a lot of money.
For instance, hiring window installers to set you up with a new set of windows incurs a heavy labor cost in addition to the cost of your new set of windows. By opting for alternative historic window restoration solutions like energy efficient window inserts, you can retrofit your original window frames with an additional pane that improves both energy and sound efficiency without hiring laborers for the install. This represents considerable savings over the alternative.
Material Costs
Materials are another large expense associated with historic building restoration projects. The bigger the project, the more materials will go into its completion. If you are using unique or rare materials to maintain the look of your historic home or office building, the material costs can increase significantly. Choosing materials that you can get at a reduced cost, such as locally sourced reclaimed wood, can make the material cost more palatable and will even impart some additional historic charm into your project.
Compliance Costs
Historic buildings don’t always meet modern building codes. They were built with outdated technology that must be updated. This can result in the need for additional add-ons to meet the demands of code enforcement agencies. There are some exceptions and allowances that may apply to preserve the building’s historical character or for adaptive reuse of historic structures, however. These can help reduce the cost of your restoration, depending on the place you live. The cost of meeting compliance demands often depends largely upon the region in which your restoration is taking place.
Maintenance and Longevity
While a historic building restoration may represent a higher initial investment, there are some long-term benefits of going this route. For example, assessing underlying structural integrity issues and taking care of them now can improve the building’s durability, allowing it to stand much longer than it otherwise would have. Old timber is much stronger than new timber, so your historic structure may even be more stable and durable than a new one.
Maintenance costs of historic properties is another factor that must be considered. These materials often require more maintenance than modern “maintenance-free” alternatives, but this is not always a benefit. Newer materials are often considered maintenance-free simply because they are meant to be disposable. Maintain historic building facades regularly, and they can last decades longer than some modern materials.
You also gain significant advantages when you upgrade elements of your historic building like windows and mechanical, electrical, and plumbing (MEP) systems. Modern replacements can integrate with historic buildings seamlessly, providing safety and efficiency benefits without affecting the building’s historic charm.
The ROI on Preservation vs. Replacement
One of the biggest concerns for anyone putting a large amount of upfront money into an investment is the ROI, or return on investment. Luckily, there are some big ROI advantages to choosing a restoration project rather than tearing down and building up.
Property Value Increase
One big return on investment in building restoration is that it can significantly increase property values. Restored historic buildings often command higher resale or lease values than new construction. Whether buyers are interested in the historic significance of the building or the fact that it is a sustainable purchase, there is a lot of demand for these properties.
Tax Incentives and Grants
Another monetary advantage of historic building restoration comes in the form of tax incentives and grants. There are plenty of federal and state tax incentives for building preservation that can make a restoration project financially advantageous.
In some cases, you can get money to protect or restore historic landmarks and structures. Once the restoration is completed, buildings listed on the National Register of Historic Places may be eligible for considerable tax credits that reduce the financial burden further. Exploring the many tax incentives and grants available is a great way to reduce the costs of your historic building restoration project.
Energy Efficiency Upgrades
Back to energy efficiency, you can get a significant ROI on your investment in the form of long-term utility savings. Modern systems are much more efficient than those installed when your historic building was built. Retrofitting older buildings with updated MEP systems and sealing the exterior with solutions like Climate Seal window inserts can greatly improve energy efficiency in historic buildings.
Tourism and Revenue Generation
Tourists often seek out historic buildings as part of their travel itineraries. They represent the history of the place they are visiting, and give visitors a glimpse into the past. By restoring historic buildings instead of replacing them, you can earn money through tourism.
Balancing Costs and Sustainability
Sustainable restoration techniques aren’t always going to be the cheapest investments up front, but they can have lasting positive impacts on the places we live and reduce future utility costs.
First, there are alternatives to complete replacement that help us mitigate the cost of restoration. Choosing alternatives like Climate Seal window inserts rather than installing a new set of windows is a cost-effective option that helps us maintain the historic charm of our historic windows. They save energy in production and reduce contributions to the landfill. Reusing materials allows us to better supply the world’s construction needs without putting undue strain on our forests and waterways.
Sustainable methods have also led to reduced energy bills and increased ROI on large restoration projects across the globe. One notable example is the Empire State Building in New York, where a 2009 retrofit project reduced energy consumption by more than 40% and carbon emissions by 54%. The $20 million project cost is estimated to save $4.4 million annually through the change to high-performance glass, upgraded insulation, and energy-efficient lighting and HVAC systems. This retrofit has been highly influential and has been used as a model for numerous buildings across the globe.
Financial Challenges and Solutions
Since the cost of a large-scale historic building restoration can get quite high, there are some financial challenges that often need to be addressed. Luckily, there are some simple solutions for ensuring the burden is not insurmountable.
Funding Large-Scale Projects
Not all funding for historic building restorations has to come out of our pockets. Securing grants, loans, or private investments can make the upfront monetary investment easier to swallow. Getting started early in finding investors and partners takes much of the guesswork out of funding large-scale projects.
Mitigating Risks
There are some unforeseen circumstances that can increase the cost of a historic building restoration, as well as ways to mitigate the risks they represent. Things like the unexpected costs from hidden damage, complicated compliance with building codes, and labor shortages in specialized areas can all represent potential hurdles. By investing in training or apprenticeships and maintaining contingency funds can ensure you don’t go over budget.
Innovative Products
Using innovative products and preservation techniques can reduce both material costs and labor required to complete your project. Utilizing energy efficient insulation materials like spray foam and Climate Seal window inserts can be applied quickly and without the need for specialty labor, reducing both material and labor costs.
Case Studies: Successful Large-Scale Historic Restorations
In addition to the Empire State Building, there are other large-scale historic restorations that were incredibly cost-effective and beneficial. Many resulted in energy savings, reduced maintenance costs, and economic boosts to the area.
The U.S. Capitol Dome in Washington D.C.
A major restoration of the US Capitol Dome was completed between 2014 and 2016. The project was aimed at both preserving the aesthetic and addressing structural issues through stabilization methods and the preservation of historical features. The structure now stands as an important national landmark that provides an opportunity for enhanced tourism and public engagement in the Capitol region.
The Royal Albert Hall in London
The Royal Albert Hall completed an £80 million restoration project in 1996, improving the venue’s infrastructure while preserving its historic design. Air conditioning was installed, the seating was upgraded, and the acoustics were improved in a way that respected the building’s historic design. The resulting enhanced visitor experience allows the RAH to generate increased revenue, contributing to both the local economy and the cultural fabric of the city.
Key Takeaways for Stakeholders
- Historic building restoration makes economic sense through the preservation of local historical landmarks, representing a sustainable investment for the earth and your region’s cultural identity.
- Upfront costs can be recouped through ROI benefits such as increased property values, tax incentives and grants, improved energy efficiency, and a potential increase in revenue-generating tourism.
- The financial challenges of completing a large-scale restoration project can be mitigated through early planning, selecting the right partners, and incorporating innovative modern solutions like Climate Seal.
Contact Climate Seal
Climate Seal offers innovative products designed for preserving the character of local landmarks in the face of historic building restorations. Our preservation window seal products allow you to maintain the historic charm of your local landmark while saving you on both material and labor costs.
If you would like to request a consultation on incorporating our products into your projects, reach out here or download this guide on cost-effective restoration.
