There was a time when an ageing building was simply seen as a problem waiting to be demolished. Not anymore. Across the design and construction sector, retrofitting is increasingly viewed not as compromise, but as opportunity – economically, environmentally and socially. From preserving embodied carbon to unlocking green finance and social value, adaptive reuse through retrofits, renovations and refurbishments is reshaping how designers think about ageing assets – and why demolition is no longer the default option.

Heritage, healing and cultural connection

Heritage preservation is often framed around aesthetics and environmental outcomes, but emotional and cultural dimensions are equally significant. For some Indigenous communities, older buildings, especially in regional Australia, can carry difficult historical associations and traumatic memories. Thoughtful retrofits led by Country and grounded in cultural understanding can transform those spaces into something positive from a state of inertia, creating new narratives that open doors to past knowledge rather than freezing buildings in time. Heritage adaptations also create opportunities for Aboriginal communities to preserve their cultural identity and history within these spaces.

Deep community engagement is essential in this process so that designers understand local sensitivities and aspirations instead of making assumptions. When done well, retrofits can embed stories into architecture – through materials, landscape interventions or interpretive elements – providing multiple touchpoints into Aboriginal history and culture and strengthening connection to place.

Sustainability expectations are rising

Tenant expectations also drive sustainability metrics during building retrofits. Commercial occupants increasingly want buildings that are in sync with their environmental commitments. Performance benchmarks, sustainability ratings and efficient building services have become market differentiators – sought by tenants for their alignment with company values and aspirations.

Existing structures can be upgraded to meet performance targets, often with the help of tools such as digital twins – detailed digital models that help track materials, predict performance and optimise future refurbishments. Having this information ready can simplify ongoing upgrades to meet evolving needs or standards and extend building lifespans even further.

Breathing new life into old buildings

A recurring theme from design practitioners is that retrofits often begin with purpose rather than data. Clients frequently approach architects with an existing building and a series of questions: What can this become? Can we make it bigger? How do we make it viable?

Sometimes, the answer is surprisingly ambitious. One example involved two dated commercial towers from the 1970s, nicknamed, rather unkindly, “The Ugly Sisters” that were stitched together and transformed into a single PCA A-grade office building. By retaining the original frame and adding several storeys on top, the project extended the building’s life, increased lettable area and significantly boosted market appeal. The Midtown Centre by Fender Katsalidis in central Brisbane remains an exemplar of adaptive reuse through meaningful repurposing of an ageing CBD asset.

Midtown Centre by Fender Katsalidis3.jpg — *The Midtown Centre | Fender Katsalidis | Image Source: https://fkaustralia.com/*

Adaptive reuse can also find new purpose for buildings that are not in use anymore. During the upgrade of the Redfern Station in Sydney, an unused brick building from the 1880s – a heritage property – was literally moved 18 metres away to make room for new lifts and stairs in the new southern concourse and turned into one of the station entryways.

That kind of intervention demonstrates a fundamental shift in assessing buildings, especially those with heritage value – they aren’t necessarily liabilities; with thoughtful design, they can gain new relevance.

Cost and carbon advantages of retrofits

Plain and simple economics still drive many retrofit decisions. During the conversion of a commercial office tower owned by Australian Unity in Melbourne into vertical aged care accommodation, comparative calculations revealed that retrofitting the building was roughly 15% cheaper than new construction after demolition. Planning approvals were also simpler because much of the existing form remained intact.

Carbon considerations reinforce the financial argument. Keeping an existing structure preserves embodied carbon. Avoiding demolition prevents that energy from being wasted and reduces the need for – and expense towards – new high-carbon materials.

Some projects push this further by deliberately minimising the use of concrete in building upgrades involving extensions, instead focussing on low-carbon materials and using mass timber additions to keep structural loads manageable while lowering environmental impact.

The social value of retrofitting

Adaptive reuse isn’t only about sustainability markers; it can deliver substantial social benefits too. The transformation of Australian Unity’s Melbourne office into an aged care and seniors’ living facility generated a measurable community value of $66.5 million in its first year of operation, attributed to improved healthcare access, wellbeing outcomes and age-appropriate housing in a central city location.

Repurposing existing structures can also help address housing shortages or community service needs in that area more quickly than building from scratch. Retrofitting keeps the urban fabric intact and introduces new uses that better match current demographics while generating new employment opportunities for that precinct.

The neighbourhood context as a retrofit design tool

Convincing clients to retain existing structures sometimes comes down to local narratives. Architects often frame retrofit proposals through context, with an intensive site mapping exercise revealing neighbourhood character, climate, local memory and the emotional and nostalgic resonance of familiar buildings. At another seniors’ living project in Brisbane, the architects chose to retain an old Queenslander home for its purpose to the neighbourhood context. Though not a heritage asset, the house was repurposed into the communal lounge, providing a familiar connection to residents who raised their own families in similar homes. That continuity also helped neighbours accept the increased height and density of the new three-storey apartment building while giving future occupants a comforting sense of familiarity – and the client, their story.

Redfern Station Upgrade - new Southern Concourse.jpg — *Redfern Station Upgrade – New Southern Concourse | Image source: https://www.transport.nsw.gov.au*

Unlocking green finance

Renovating old buildings can deliver carbon and sustainability benefits and help return the asset to the market sooner. However, structural upgrades needed to bring a dated building to code standards for seismic impacts, wind loads and fire resistance, for instance, have a cost implication too. This is where green financing enters the picture.

Retrofits – with their lower carbon impacts – are being incentivised through green loans facilitated by councils. Some councils are even lowering or waiving fees for retrofit projects below certain cost thresholds, further encouraging adaptive reuse. Although awareness of these schemes is still growing, these initiatives suggest a broader policy push towards retaining existing building stock. For some projects, these funding mechanisms can tip the balance from demolition to reuse and make retrofits viable.

Conclusion

Heritage buildings provide a cultural understanding of the past that is valued and passed on to future generations so that it's not forgotten. It's also important that these buildings continue to be useful by evolving and remaining resilient.

Perhaps the most forward-looking aspect of retrofit thinking is designing today’s buildings for tomorrow’s adaptation. If digital records, material passports and flexible construction methods are incorporated early, future refurbishment and adaptation become easier.

In that sense, retrofit isn’t only about preserving the past. It’s about planning forward for continuous evolution – ensuring buildings remain useful rather than becoming tomorrow’s demolition candidates.

Ultimately, the discussion around retrofitting is less about nostalgia and more about resilience. Old buildings can carry carbon savings, financial benefits, community meaning and cultural healing. The challenge lies in recognising which “old bones” still have life left – and giving them the chance to tell new stories.

This article is based on insights drawn from the session titled The embodied carbon dilemma for commercial buildings: Demolish, retrofit, or rebuild? held as part of the 2025 Sustainability Summit.

Main image: 450 Queen Street, Brisbane | Fender Katsalidis | Render: Nature Focus | Source: https://fkaustralia.com/

The cost, carbon and community value in retrofitting buildings

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