Contrasting the Costs and Benefits of a Commercial Renovation Project Compared to a New-Build Construction
When your business has outgrown its current premises, you have an opportunity to expand or require a more efficient layout or trading space to meet your changing needs. There are two main options: renovating and remodelling the site where you currently operate from or moving elsewhere.
For most companies, a self-build is far more attractive than purchasing another empty building, partly due to the added time and expense of purchasing and then adapting an existing structure, but also because if you’ve reached a scale where you need a custom-designed premise, a self-build is a more efficient way of designing exactly the site you need.
We often speak with business property owners who are unsure whether improving their current premise is viable, cost-effective and even possible, or whether starting work on a purpose-made premise would be more advisable—and the right solution, as always, is down to your business, priorities and budget.
The Pros and Cons of Constructing New Commercial Premises
There is little doubt that constructing a business premise from the ground up can be a massive opportunity to design and commission a building specifically created for your business, whether you have an industrial enterprise and need custom foundations and flooring, want a beautiful retail space, or would like an eco-friendly set of offices.
Although many assume that a custom build is expensive, the reality is that it is commonly far more budget-friendly than buying an existing premise with an unsuitable layout and embarking on a full-scale renovation—which you might have been able to achieve without the upheaval of relocating.
However, the benefits of building a bespoke commercial site extend beyond pricing alone. They include:
- Complete design freedom, with the knowledge of how your business works, the varied spaces you require, how teams and functions collaborate, and where to position different departments, units or teams to optimise productivity.
- The avoidance of any challenges, which in commercial buildings might include asbestos, poor-quality insulation, roofing or glazing that isn’t efficient or watertight, or finding that substandard parking, loading facilities, or access for delivery or fleet vehicles poses a real issue.
- Opportunities to design a made-to-measure premise that utilises the latest in durable, sustainable materials. Older commercial builds typically fall far below the quality, longevity and suitability of modern eco-friendly alternatives, where great insulation and energy efficiency might mean your new commercial space has minimal running costs and overheads.
The drawbacks primarily relate to time and cost. Most businesses need to work out whether they can access financing to complete a construction project while simultaneously trading from their existing premises or need to stop operating for a time until the new site is ready to move into.
However, for companies with specific and niche requirements, the advantages of a custom build may outweigh the temporary disruption, especially if there is no other viable way to create a premise that would remain fit for purpose for years to come.
The Advantages and Possible Pitfalls of a Commercial Renovation Project
The alternative is to renovate, remodel, or reconfigure your existing commercial space. The biggest positive aspect of this option is that renovation works, however complex, often take much less time than a full new build, which might make a real impact on revenues and your ability to keep trading.
Of course, there may be compromises, but as an experienced commercial building firm, we can often discuss a schedule of works to try and fit this around your requirements or focus on certain aspects of the renovation first, where some teams or functions can continue to work as normal.
There are countless ways to retrofit new fixtures and features to existing properties, construct additional floors, spaces, and areas, from modular offices to mezzanine levels, accommodate a growing workforce quickly, or redesign manufacturing areas to optimise the flow of materials or products through your processes.
That said, you may need to consider any building features that cannot be moved or changed, such as structural columns. In this case, an architect or engineer may need to step in to advise on potential solutions or recommend the best ways to achieve the layout you need without major modifications.
Done correctly, remodelling your business premise could mean you spend far less time and money achieving the site you require, add to the market value of your commercial property, improve energy efficiency, lower heating and running costs, and adapt the space to your needs without needing to relocate.
Picking the Right Commercial Renovation or Construction Approach for Your Company
There is never one correct answer because so much depends on your priorities, but working through cost comparisons, the length of time each route is likely to take, and what that means for your company in terms of financing, trading hours and continuity for your customers is worthwhile.
Renovations can also depend heavily on the condition and age of your current premises. A modern unit can be quite easily modified or remodelled, whereas older buildings might need more extensive repairs and modifications to ensure they remain stable and safe.
Our advice is to avoid rushing into any decisions without clarifying how every option compares and to take the time needed to think about your core deliverables, whether you want a larger, more efficient trading space as quickly as possible or need premises that are custom-made for your business and will remain fit for purpose for as many years as possible.
In short, the more specific and custom your needs, the more likely a commercial build will be the way to go, whereas the more value you place on speed and cost certainty, the more attractive a renovation project may look.
For more detailed and bespoke guidance about the best options for your business and premises, you are welcome to contact the commercial renovations and construction teams at Pinnacle Works to arrange a good time to talk.
We can run through your current problems with your existing trading premise, chat about the potential ways forward you are considering, and provide independent expertise to help you make an informed decision.
