The Economics of Adaptive Reuse—Comparative Cost Analysis of Revitalization vs. Demolition and Reconstruction at Radex Park Marywilska

The revitalization of post-industrial areas has emerged as a critical strategy for sustainable urban development, achieving a balance between economic, social, and environmental priorities. This study assesses the transformative capacity of revitalization strategies by conducting a comprehensive case analysis of “Radex Park Marywilska” in Warsaw, Poland. The analysis quantifies the benefits of revitalization in comparison to demolition and new construction methodologies. An examination of the revitalization initiative demonstrates that it yielded a total of PLN 41.15 million in benefits, with PLN 28.13 million attributed to direct cost savings and another PLN 13.02 million resulting from environmental improvements. In practical terms, this equates to a return of PLN 1.93 for every PLN 1 invested—a notably efficient outcome. The project transformed four industrial buildings, significantly increasing usable space in some (e.g., Building L1 by 345% and K1 by 21.6%) while slightly reducing it in others (B1 by 4.7% and I1 by 10.5%). From an environmental impact perspective, the success was staggering: 48,217 tons of carbon dioxide emissions were prevented, and 72,315 tons of building waste were diverted from landfills. To these figures, the study further adds a return in economic activity, the generation of new jobs, and improvement in local infrastructure. The retrofitting of historical buildings to contemporary standards has encountered numerous challenges; nonetheless, the implementation of circular economy principles has succeeded in negating such challenges. Generally, the results show economic, environmental, and social benefits of revitalization projects compared to new, greenfield projects. The case study provides valuable lessons to policymakers and urban planners, rendering adaptive reuse a fundamental approach in achieving sustainable urban development.