Adaptive Reuse for Sustainable Urban Future: Balancing Environmental, Social, and Economic Goals in Real Estate Redevelopment

Cities today are under pressure from climate change, housing shortages, rising construction costs, and social inequality. Adaptive redevelopment of existing buildings for new purposes offers a sustainable alternative to demolition and new construction. This thesis explores how adaptive reuse can support environmental, social, and economic sustainability, and what factors influence its successful implementation across different organizational and stakeholder settings. Using a qualitative, multiple-case study approach, the research focuses on four adaptive reuse projects in Sweden: Röda Oasen (non-profit), Mobilia (commercial), Magazine M1 (public-private), and Södervärn’s Water Tower (municipal) based on public available resources. Röda Oasen and Mobilia were studied in more depth through semi-structured interviews. To complement the analysis and bring a corporate perspective, the study also includes insights from two interviews with INGKA Group, offering reflections on how adaptive reuse fits into commercial and multinational strategies. The findings show that all cases contributed to environmental sustainability by reducing material waste and emissions. Social benefits were most evident in projects with strong community involvement, while economic outcomes were closely tied to organizational resources and long-term planning. Projects with flexible governance, inclusive engagement, and clearly defined sustainability goals were more likely to succeed across all dimensions. The analysis is grounded in stakeholder theory, contingency theory, urban resilience, and the triple bottom line model. It reveals that adaptive reuse is not only a technical or design exercise: it is a strategic and collaborative process shaped by values, institutional structure and local conditions. When these elements are aligned, adaptive reuse can help cities preserve cultural heritage and while promoting more inclusive, resilient, and sustainable development.