Examples
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Parmaco Group increases building use by leasing modular buildings

Parmaco Group leases modular buildings and ensures they have a continuous life cycle, resulting in less land use, with fewer idle buildings and less need for building materials.

Published

Problem

Traditional construction practices often result in inefficient land use, whereby areas are designated for static, low-density purposes, instead of accommodating multiple and varying functions. Excess square footage and high energy consumption are a result of these practices. Rapid population changes and shifting needs can make purpose-built and fixed structures obsolete. This linear approach is detrimental to biodiversity, as it contributes to unnecessary resource depletion for building materials, habitat loss from over-dimensioned buildings and greenhouse gas emissions.

Solution

Parmaco Group specialises in modular buildings with a business model centred on leasing structures dimensioned according to clients’ needs and maintaining their operation until the space is no longer required, typically averaging around seven years. Subsequently, the buildings – or their relevant components – are relocated to new clients for continued use.

One of the biggest and most overlooked problems in the built environment today is overbuilding – the use of resources and land to make buildings that are either constantly half-empty or vacant most of the time. Parmaco’s solution demonstrates that we need a more dynamic approach to buildings.

Riku Sinervo and Tim Forslund, Sitra

Biodiversity impacts

Modular buildings are adaptable and reusable, which minimises land use and habitat disruption compared to conventional construction. As these structures can be relocated and repurposed, the buildings are used more efficiently, reducing the need for additional land use, both from building materials and at the building site, as fewer buildings are needed in total. Land-use change can also be minimised by offering buildings that are not over-dimensioned and that minimise disruption of the soil underneath.

Benefits for the company

The average lease time for a Parmaco building is around seven years, after which the building can be rented out to a new client. Active reuse helps reduce the need to produce new modules, thereby reducing costs. The modular design also helps meet shifting demands for property and avoid long construction times and lock-in of investments (stranded assets).

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