For business and property owners who are looking to expand their physical footprint, there may be a time when they consider working with a commercial construction contractor. The next step in the process is deciding whether it’s a better move to undergo a commercial renovation or build an entirely new building from the ground up.
Like any big business decision, this one needs to be made with some thorough research and some considerations in mind.
The Case for Commercial Renovation
Whether it’s the choice to renovate a currently occupied commercial building or buying one with the plans to renovate, this is generally the most cost-effective option. Inflation, rising construction material costs, and growing talent gaps have made it more expensive than ever to build new construction properties.
There’s also the speed with which a renovation is completed; this timeline is much shorter than building new. This can come in handy when businesses are on a tight deadline or can’t afford the downtime or relocation that happens with a new build. Change orders and cost overruns are much more common during these projects too when compared to renovations.
For business owners or even franchise operators who would like to create a space that’s customized, it’s a mistake to think that new construction is the only option. Renovations allow owners to add to or subtract from cookie-cutter buildings that they want to improve to better meet their needs.
What about New Construction?
It’s also the case that new construction allows for full personalization, and that in and of itself is perhaps the biggest advantage of choosing new construction over renovation. Distinctive design, cutting-edge layouts, specialized rooms, and wings of a commercial building — new construction allows for full control in the creation of customized spaces.
When it’s a choice between financing the cost of renovations versus the cost of new construction, the latter will almost always be easier to secure. There are many more lenders that will offer business owners loans to build a free-standing commercial building than they will offer to those who want to renovate. Additionally, any lender will include a margin in the total loan amount to protect against unexpected cost overruns.
There are also situations where existing spaces cannot be renovated, either due to structural challenges, permitting restrictions, or even historical building regulations. In this case, there’s no other option but to find a new location and build a commercial property from the foundation to the roofline. Organizations that support sustainability initiatives and want to get LEED certification may want to consider choosing new construction or renovation.
Choosing a Commercial Construction Contractor
Before you even start your search for qualified commercial construction contractors, you need to create a plan. Will you be remodeling or building from the ground up? What’s your budget? What kind of timeline are you envisioning? Take a deep dive into the financial analysis of the project you’re planning; these numbers will come up frequently throughout the entire process.
Once you’re clear on a plan and a budget, get quotes from a few contractors. Remember that the cheapest option isn’t always the best. Check portfolios and references, and be clear upfront with your expectations. Once you’ve chosen a contractor, they will be able to answer any additional questions you may have about the construction project. Property owners will also need to decide whether the building can continue operating as usual or will need to shut down temporarily. Some businesses may even need to temporarily relocate to minimize disruption.
The best way to get the most out of your commercial construction project is by working with a commercial construction contractor who has experience. A contractor who offers design-build services can identify issues before they create cost or scheduling overruns. From the ground up, any commercial construction project starts with a team that can read blueprints, tackle permitting, comply with local building codes and zoning ordinances, along with managing labor and cleaning up when the work is done. Communication needs to be prioritized along the way as well.
When you’re ready to renovate your commercial property, give our team a call. Our 4th-generation award-winning commercial construction team are experts at staying on time and budget — let’s talk more about making your remodel vision a reality.