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Updated on July 18, 2023

“Replacement” typically refers to the process of replacing an existing property or structure with a new one. It involves demolishing or removing the existing building and constructing a new one in its place.

What are the possible reasons for replacement in real estate?

It can occur due to obsolescence, where the current property is outdated and doesn’t meet market demands. Redevelopment projects in urban areas often involve replacing older buildings to maximize space and meet modern standards. Upgrading properties aims to attract higher-end tenants or increase value. Replacement can also be driven by the need for expansion or when there are severe structural concerns that compromise safety.