Business Model Canvas for Residential Adaptive Reuse
(2025) Circularity in the Built Environment- Abstract
- The construction industry is affected by several ongoing crises, derived from e.g. the climate emergency and geopolitical challenges. Thus, new thinking and novel business models are much needed. The major role of the construction industry in the climate energy and resource depletion calls for sustainable and circular business models specifically. Consequently, this study aims to develop a sustainable business model for one construction process, namely, adaptive reuse of existing buildings to housing (‘residential adaptive reuse’). The business model is created with the help of a strategic management tool, Business Model Canvas. The traditional elements of the canvas are complemented with two new elements, eco-social costs and benefits.... (More)
- The construction industry is affected by several ongoing crises, derived from e.g. the climate emergency and geopolitical challenges. Thus, new thinking and novel business models are much needed. The major role of the construction industry in the climate energy and resource depletion calls for sustainable and circular business models specifically. Consequently, this study aims to develop a sustainable business model for one construction process, namely, adaptive reuse of existing buildings to housing (‘residential adaptive reuse’). The business model is created with the help of a strategic management tool, Business Model Canvas. The traditional elements of the canvas are complemented with two new elements, eco-social costs and benefits. The developed business model is based on two expert workshops held online in
June 2024. The participants comprise 12 industry professionals representing contractors, developers, and public sector clients. The findings are synthesized into one circular business model canvas. The findings reveal that the business model differs from that of new construction, most significantly in the eco-social elements included in the canvas. Avoiding greenfield development and the use of existing infrastructure and buildings deliver the most benefits. The largest cost savings in both economic and environmental terms derive from existing foundations and the building stem. On the other hand, the typical tendency of adaptive reuse projects to use environmentally sound, aesthetically pleasing and high-quality materials
was identified as an extra cost. In addition to the cost structure and revenue streams, the customer segment and customer relationships for adaptive reuse projects also differ somewhat from new construction. Speciality housing, such as student housing or elderly care, were seen as potential clients. Traditional contracting forms, such as the full-cost model, are not seen as suitable. Instead, adaptive reuse projects should favour long-term, partnering type commitments. The developed business model canvas with the distinctive elements may work as inspiration and guidance to contractors looking to venture into adaptive reuse projects. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/712f8b7c-a60f-48bb-9f44-c5b18e4b44eb
- author
- Kyrö, Riikka LU ; Janson, Ulla LU ; Blixt, Anna-Maria and Fredriksson, Peter
- organization
- publishing date
- 2025
- type
- Contribution to conference
- publication status
- published
- subject
- conference name
- Circularity in the Built Environment
- conference location
- Tampere, Finland
- conference dates
- 2025-09-16 - 2025-09-18
- DOI
- 10.5281/zenodo.17092525
- language
- English
- LU publication?
- yes
- id
- 712f8b7c-a60f-48bb-9f44-c5b18e4b44eb
- date added to LUP
- 2026-04-29 08:11:59
- date last changed
- 2026-05-04 14:56:20
@misc{712f8b7c-a60f-48bb-9f44-c5b18e4b44eb,
abstract = {{The construction industry is affected by several ongoing crises, derived from e.g. the climate emergency and geopolitical challenges. Thus, new thinking and novel business models are much needed. The major role of the construction industry in the climate energy and resource depletion calls for sustainable and circular business models specifically. Consequently, this study aims to develop a sustainable business model for one construction process, namely, adaptive reuse of existing buildings to housing (‘residential adaptive reuse’). The business model is created with the help of a strategic management tool, Business Model Canvas. The traditional elements of the canvas are complemented with two new elements, eco-social costs and benefits. The developed business model is based on two expert workshops held online in<br/>June 2024. The participants comprise 12 industry professionals representing contractors, developers, and public sector clients. The findings are synthesized into one circular business model canvas. The findings reveal that the business model differs from that of new construction, most significantly in the eco-social elements included in the canvas. Avoiding greenfield development and the use of existing infrastructure and buildings deliver the most benefits. The largest cost savings in both economic and environmental terms derive from existing foundations and the building stem. On the other hand, the typical tendency of adaptive reuse projects to use environmentally sound, aesthetically pleasing and high-quality materials<br/>was identified as an extra cost. In addition to the cost structure and revenue streams, the customer segment and customer relationships for adaptive reuse projects also differ somewhat from new construction. Speciality housing, such as student housing or elderly care, were seen as potential clients. Traditional contracting forms, such as the full-cost model, are not seen as suitable. Instead, adaptive reuse projects should favour long-term, partnering type commitments. The developed business model canvas with the distinctive elements may work as inspiration and guidance to contractors looking to venture into adaptive reuse projects.}},
author = {{Kyrö, Riikka and Janson, Ulla and Blixt, Anna-Maria and Fredriksson, Peter}},
language = {{eng}},
title = {{Business Model Canvas for Residential Adaptive Reuse}},
url = {{http://dx.doi.org/10.5281/zenodo.17092525}},
doi = {{10.5281/zenodo.17092525}},
year = {{2025}},
}