Maximizing Redevelopment Value
When it comes to commercial redevelopment, timing and collaboration can make or break a project’s profitability. At a recent luncheon hosted by ISI Demolition and CSSI (Cost Segregation Services, Inc.), developers, investors, and economic development professionals gathered to discuss how early collaboration—between demolition experts, tax professionals, and property owners—can unlock hidden value and accelerate project timelines.
Both ISI and CSSI emphasized one key takeaway: the sooner you start working together, the more opportunities there are to save time, money, and resources throughout the redevelopment process.
Smart Demolition Starts with Early Collaboration
ISI Demolition’s “Smart Demolition” approach focuses on early engagement and efficient execution. As ISI shared, “The faster we can demolish, the faster construction starts and the sooner you can lease or sell.” By involving demolition partners early in planning, developers can shorten project timelines, reduce costs, and better coordinate with environmental, recycling, and tax specialists like CSSI.
Early collaboration also means more flexibility—whether it’s bringing additional partners to the table, salvaging materials for recycling credits, or sequencing work to align with permitting and redevelopment schedules.
The Hidden Tax Opportunity: Partial Asset Dispositions (PADs)
One of the most eye-opening takeaways from the luncheon came from Cass Gibson, Account Executive with CSSI, who shared how property owners may be missing out on substantial tax savings tied directly to demolition projects.
While most commercial real estate professionals are familiar with cost segregation studies, fewer know about Partial Asset Dispositions (PADs)—a tax-saving opportunity that applies specifically during demolition.
A PAD allows property owners to write off the remaining depreciation of demolished assets in the year the demolition occurs. In simple terms: if you’re tearing something down, there’s money left on the table unless you file a PAD.
According to Cass many owners miss this opportunity entirely because they don’t realize it’s separate from a cost segregation study. “You could be leaving up to 25% of the project’s cost in the trash,” he explained.
You could be leaving up to 25% of the project’s cost in the trash
CSSI’s engineers conduct a detailed review of each property—much like a doctor reading an MRI—to identify components eligible for write-off. Their team can even complete PADs using photos if needed, ensuring owners can claim every dollar available.
One example shared during the luncheon highlighted a property owner who saved $2.5 million on a $6 million project by applying PAD principles. And because studies typically cost only a few thousand dollars, the potential return can be significant.
Both PADs and cost segregation studies can benefit entities of all types, including LLCs with multiple stakeholders, since savings often pass through to individual members.
As Cass noted during the discussion, “Double-dipping is OK when it comes to recycling and tax benefits.” Together, a coordinated team can approach redevelopment smarter—from the first meeting to the final write-off.
It’s also worth noting that these opportunities aren’t limited to large-scale redevelopment projects. PADs are especially valuable in retail and other sectors where renovations are frequent—for example, when updating interiors, replacing mechanical systems, or reconfiguring tenant spaces. Even smaller renovations or partial demolitions can qualify and deliver meaningful savings when the right experts are involved early.
The Pillars of Smart Demolition
At ISI, Smart Demolition goes beyond taking down structures—it’s about building value from the start. Every project is guided by three key pillars:
- Planning for Efficiency – Early involvement allows our team to align demolition sequencing with construction schedules, utility coordination, and permitting timelines—keeping projects on track from day one.
- Cost Savings – Strategic planning reduces unexpected delays, maximizes recycling value, and supports programs like PADs that can add measurable financial return.
- Environmental Responsibility – ISI prioritizes material recycling, waste reduction, and environmentally responsible disposal to help projects meet both regulatory and sustainability goals.
Together, these principles ensure each project, regardless of size, is handled with precision, safety, and foresight—delivering a smoother path from demolition to redevelopment.
A Partnership That Maximizes Time and Money
For developers and commercial real estate professionals, the best outcomes come from building the right team early. When demolition partners, tax specialists, and project stakeholders work together from the start, it creates opportunities to move faster, control costs, and uncover additional value.
By aligning demolition strategy with redevelopment planning, ISI Demolition helps keep projects on schedule and site work efficient. Working in parallel, CSSI identifies the financial advantages tied to those efforts—helping owners and investors capture value that might otherwise be lost during demolition.
Early collaboration between all parties doesn’t just save time—it maximizes returns and strengthens the foundation for a successful redevelopment.
Start your next project with the right team.
Whether you’re planning a redevelopment, repositioning an existing property, or evaluating a new acquisition, early collaboration can make a measurable difference. Contact ISI Demolition to discuss upcoming projects and learn how our team can help coordinate demolition strategy with partners like CSSI to save time, reduce risk, and maximize return.
