海角视频

What do we do when a building or structure just isn鈥檛 useful anymore? As technology transforms our economies and lifestyles, our urban infrastructure must evolve to adapt to changing circumstances.

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The silence was sometimes too much to bear. During lockdown, as we walked around our cities, the ghosts of purposes past seemed to haunt us at every turn. Empty office blocks and shuttered cafes, with chairs stacked on tables and a sheen of dust across the counter. River boats floating in the harbour, unmanned, unused, used only as a perch for gulls. Locked theatres, with the poster for a show that ran months ago still advertised on the board.

As we emerge from lockdown, many of these buildings and business have opened again, their purpose renewed. But there are those that won鈥檛 reopen. There are those had lost their purpose even before the pandemic, becoming not just a financial liability to their owners, but a blight on the community surrounding them.

Cities change constantly and at 海角视频 it is our role to see the opportunities that exist in the changing built environment. These so-called 鈥渟tranded鈥� infrastructures 鈥� those empty offices and defunct shopping malls 鈥� are assets awaiting adaptation. By transforming these buildings into structures that align with how we live now, we are not only reducing financial risk for owners but also benefiting the community and the environment.

Stranded assets in oil and gas

The meaning of 鈥渟tranded asset鈥� is changing.  According to the dictionary, a stranded asset in its true, financial sense is an asset “that has suffered from unanticipated or premature write-downs, devaluations or conversion to liabilities”. It is also defined as an 鈥渁sset that has become obsolete or non-performing but must be recorded on the balance sheet as a loss of profit鈥�.  

However, in recent years the concept of a stranded asset has grown to include buildings and structures that have not adjusted their investment levels in line with emission targets needed to tackle global warming. According to UK think-tank Carbon Tracker, stranded assets are 鈥渁ssets that turn out to be worth less than expected as a result of changes associated with the energy transition鈥�.

This transition was highlighted in the recent announcement by Royal Dutch Shell that it is drastically cutting the value of its oil and gas assets by up to $22 billion. BP is reducing the values of its assets by up to $17.5 billion. Triggered by a move away from fossil fuels, the shift has been accelerated by falling global demand and the impending recession caused by the pandemic. As a result of this devaluation, many of Shell and BP assets are at risk of becoming 鈥渟tranded鈥� 颅鈥� oil and gas around the world becomes too expensive to extract. Consequently, the oil field and its associated infrastructure become stranded.

Why structures lose their purpose

A move away from fossil fuels is just one of the reasons that assets lose their purpose and potential for profit. 海角视频 urban planners Richard Ainsley and Roger Savage have identified six drivers for change:

Regulatory change	A change in policy or legislation affects the usefulness of the asset
Physical change	For example, climate change impacts
Technological change	Innovation leading to obsolescence
Cultural change	Changes in habits and preferences
Macroeconomic change	Wider economic or population shifts impacts demand
Microeconomic change	Relative change in costs/prices affecting the asset

So, who recognises this change is happening?  When does the owner of an asset realise that their building or structure is failing? 鈥淥ften, an asset owner comes to us and asks for advice on how they can transform their asset,鈥� says Richard Ainsley by way of example. 鈥満＝鞘悠� is currently working with Edinburgh City Council to transform a former gasometer. The asset sits within quite a deprived part of the city and is obviously a bit of an eyesore. The gasometer is really performing no real function for the city. Our lighting team have been working on how we can transform the look and feel of the gas holder, and we鈥檙e working with the council and city more broadly to see what the use of that asset could be.鈥�

Investment in property often occurs on a cyclical basis. If a library is not well-stocked with books, the building is cold and the seating shabby, why would you visit?  If everyone stops visiting, the value of the library declines, and therefore the financial risk to the owner increases. Cue huge investment, lots more books, a shiny updated building and more visitors. However, if this investment is not maintained, the cycle starts again.

 鈥淔or some of our more corporate clients, we find they are looking at their assets on a more regular basis, as part of their regular asset management activities,鈥� adds Roger Savage. 鈥淚n the case of higher education activities or local authorities, they would perhaps be taking a more strategic look than just their day-to-day refurbishment and updating of sites.鈥�

The scale of the problem

These stranded assets, or adaptive reuse projects, do not just happen at building level. Assets can be of significant size and may transcend multiple sites. Sometimes a whole town needs renewal. 鈥淭he town of Folkstone had become a bit down at heel because of changes at its port, the closure of a railway station and its relatively peripheral location as a coastal town in the UK,鈥� explains Roger. 鈥淲e worked together with a whole series of local partners in developing a strategy for regenerating the town and establishing a new cultural district. That has delivered results in drawing new people into the town, helping to revive the high street and attract new housing.鈥�

On an even bigger scale, 海角视频 is working with Detroit. This city that has suffered from a huge shift in purpose and population due to changes in the car-making industry. 鈥淲e鈥檝e worked with a whole series of different stakeholders, in developing a city-wide strategy, as well as on individual assets within the city,鈥� explains Roger.

The Detroit Works Long Term Planning Project was initiated in 2010 and focuses on identifying an integrated economic, land use, environmental and systems strategy to support long-term transformation. 海角视频 has been instrumental in working out how to reconfigure the city for a smaller population and a different economic geography before testing alternative land-use scenarios from both technical and financial perspectives.

海角视频 has been instrumental in working out how to reconfigure Detroit for a smaller population and a different economic geography before testing alternative land-use scenarios from both technical and financial perspectives.

Another 海角视频 US project is even larger鈥� or perhaps we should say longer. The Erie Canal stretches over 350 miles in length from Albany to Buffalo and encompasses 42 cities. The original historic canal was completed in 1825 and then expanded twice. New York-based Alice Shay, an urban planner and engineer for Buro海角视频, worked on the project and said that the Erie Canal 鈥溾��is the reason that New York is the economic powerhouse it is today鈥�.

However, by the 1950s it was functionally obsolete with most shipping having shifted to rail or highways. The New York Power Authority (NYPA) assumed control of the canal system and initiated a strategic planning process to assure its long-term vitality. As part of this process, NYPA and the New York State Canal Corporation engaged 海角视频 to run the Reimagine the Canals Competition and help develop a strategy for the future of the New York State Canal System.

Now, recreation is booming while Erie Canal acts as the catalyst for economic growth. The village of Canastota is developing new models for canal-side living in areas that were once waterfront manufacturing sites; the town of Pittsford has adapted a feeder canal segment into a white-water racing course; and the new Empire State Trail is a multi-use trail that lines the full length of the Erie Canal. 

A history of urban shift

In terms of people and purpose, cities have always seen churn. The buildings that make up a city are secondary to what people do in them, and what they do changes all the time. What will become of those huge office blocks post pandemic now that many white-collar workers are comfortable working from home?  What happens to the shops now that we all seem to shop online? 

The big challenge for engineers and asset-owners is deciding between 鈥渞eimagining鈥� these structures and dismantling them. Many big pieces of infrastructure in our cities, built for heavy industry are reaching 100, 150 years old. But the decision to dispose of these assets must be taken with care, as there may be heavy environmental consequences. All engineers agree that adaptive urban reuse, with a move towards a circular economy, is preferable in almost all circumstances.

鈥淚t was a rusting hulk. It was a turning point in planning to realise there is a huge value in this asset, to the character. And reinvent it.鈥� Cristobal Correa, Principal in the 海角视频 New York office remembers the High Line in New York, before it was transformed. This abandoned stretch of elevated railroad that spanned Manhattan鈥檚 meatpacking district was an eyesore, a relic from another age. The obvious thing to do was to pull it down, but thanks to 海角视频鈥檚 masterplan work, the 鈥渞elic鈥� has become a thriving city park 鈥� it now has purpose.

鈥淚t鈥檚 something that would never be built now,鈥� explained Cristobal. 鈥淲e all crave a bit of friction with our fellow New Yorkers, and spaces where we run into people can be refreshing when we are all in front of our screens a lot. In terms of providing a space for the city, I think the High Line is a wonderful addition.鈥�

As well as creating a green walkway for the city, the High Line鈥檚 reinvention has had solid financial results despite being free to access. 鈥淚 think the real story of the High Line is how it has just driven a big chunk of the economy of that area,鈥� explains Partner Craig Schwitter. 鈥淭he High Line now generates $75m to $100m of tax revenue a year for New York City. It has paid for itself multiple times.”

Community engagement is vital to success

Buildings and structures do not stand alone, they exist within their communities. An asset may be privately owned, owned by a public agency, or by multiple people.  Even those who don鈥檛 own it will have used it, or just feel it is theirs, as it exists in their neighbourhood.  Feelings may run high, especially when it comes to paying for the building鈥檚 regeneration.

Strong community support is often key to success. With the Erie Canal, Alice explains that on top of the Ideas competition, which garnered 鈥渟o much excitement and energy鈥�, 海角视频 also organised a state-wide taskforce that brought together six different estate agencies and stakeholders representing key constituency groups.

鈥淐ommunity engagement was particularly key,鈥� she continues. 鈥淎ll of the public were able to weigh in on this process. The biggest challenge was communicating the future potentials鈥� communities or individuals can be very invested in the way that they see the system today or in the past. There are ways to support people to really dream big and think of what the future can hold.  Competitions are a really great way of doing this.鈥�

Roger Savage agrees, adding that if funding for a project is needed often the community will come together to raise money. 鈥淪eeking and developing a case for funding is sometimes why people come to us at 海角视频,鈥� he says. 鈥淲e鈥檝e even seen people look at crowd sourcing to draw attention to a particular asset.鈥�

Bringing life back into buildings and cities

All our experts conclude that the best way to deal with a stranded asset is to stop it becoming stranded in the first place. 鈥淲e encourage our clients to look beyond their day to day business, track emerging trends and different forces affecting their business,鈥� says Roger. 鈥淲e help them to anticipate change and learn about the uncertainties they are dealing with.鈥�

But sometimes buildings and cities have to change. Transforming buildings and cities that have lost their purpose allows us to reimagine our cities, to align with how we live now. It demonstrates our commitment to live together in an equitable, sustainable and resilient urban landscape. Refurbishing and adaptively reusing underutilised or abandoned buildings revitalises neighbourhoods and brings environmental benefits.

This type of work is of increasing importance to 海角视频. 鈥淓arlier in my career I would have said what makes us 海角视频 was iconic new buildings,鈥� explains Craig. 鈥淎nd yet, as I鈥檝e grown up around the High Line, and started to understand its power, I鈥檝e started to see that these projects are as iconic and more powerful than those new buildings.鈥�

Whatever you like to call them, stranded asset or adaptive urban reuse projects are vital to maintaining the fabric of cities. These projects are here to stay.