For a commercial business owner who’s been in the industry for a long time, there comes a chance for expanding business operations—but there’s one problem: There’s no room to expand. As a business owner, a choice has to be made. Should there be renovation of the existing space already owned by the company or is a new building the right answer? What is the best option for achieving long-range success? Ultimately, in making a big decision, the budget may play the biggest role. That’s why it is important to know what factors will affect the cost of renovation and new commercial construction and to weigh the benefits associated with each option. This can help in making the right choice for the company’s needs.

Factors to Consider

When it comes to building a new structure and renovating an existing commercial space, there are many factors that come into play before making a decision. Here are some of the factors that a commercial business owner has to consider to have an overview of overall cost.

1. Budget

For commercial building and business owners, it’s natural to think that new construction will be more expensive than renovating an older structure. But in reality, the cost comparison depends on many factors. Although new construction is certainly costly, renovating an older building can be more expensive to address since older buildings often require code compliance issues that are expensive to address. Moreover, preserving an older building and maintaining its historic beauty is often not as cost-effective as building a new commercial space. However, upgrading a relatively modern building with only a few changes can be far less expensive than building new construction. We recommend getting a quote for both projects to compare prices.

2. Investment Return

Investment return is something that should be taken into consideration when trying to budget for a new building project or a commercial renovation. There is a return on investment when a commercial property owner makes changes to his or her property. There are some changes that have a bigger impact on sales and the business while there are some that only have a lesser effect. Some renovations will also attract more business and boost sales more than others, so this is something that must be taken into consideration when budgeting for a commercial project.

3. Project Time Frame

Keep in mind that building a structure and renovating an old building are completed on different timelines. Renovations typically can be done in a matter of weeks or a few months. Furthermore, renovations can still take place in the same space where business operations are conducted. For business owners who want to minimize the impact of their renovation on the business, this can be done by limiting the construction time to evenings, weekends or off-season dates.

New building construction can take a long time. With new construction, employees can continue with the business as usual, even when the new building is being constructed. It is only after the building is constructed that the employees can transfer to the new space.

4. Sustainability

Nowadays, sustainability is an important factor that commercial property owners and business owners should take into consideration when they decide how to change or upgrade their property. In most cases though, re-use of a building is considered much more sustainable than building construction. Demolition and building a new property produces far more carbon emissions than the renovation of an existing property. If a commercial property owner wants to make a business as sustainable as possible, he or she can upgrade the property to become more energy efficient. Take note that sustainable buildings greatly help in reducing energy use, as well as utility bills.

5. Restrictions and Permits

Commercial buildings are restricted by standard building codes and other laws according to the place where they are located. For example, a building that is declared historical may not be allowed for renovation without obtaining specific permission from local building officials or agencies. On the other hand, a new commercial construction project may be restricted by zoning laws in the area.

Get Started

Planning on upgrading commercial buildings? Whether the plan is renovation or new construction, planning in advance is key. Getting quotes from reputable design-build contractors can help decide which type of commercial construction project is right for the company’s needs.