It’s time to take your business to the next level, but what is the best way to get there? Whether you’re launching your dream business and designing your new physical space or you’ve outgrown your current one, below are key factors to consider when deciding whether to build or buy a commercial building.
Building New Commercial Buildings
When building your commercial space, you have the ability to make it uniquely yours and keep it on brand, making it easily recognizable to your clients and customers. A custom site can be tailored to meet your specific business needs, ensuring that every detail is optimized to support your operations efficiently.
Advantages
Customization
- Design the building to meet your exact requirements, ensuring you have the layout you desire and the flow needed to optimize the customer experience.
- New construction can be designed to become a community landmark or serve as a billboard for your business.
Quality Control and Superior Features/ Cost Efficiency
- Integrate state of the art technology which will level up your brand.
- Utilize energy-efficient systems and sustainable materials that can result in substantial cost savings over time.
Safety and Compliance
- ADA compliance is often easier to satisfy when building new as opposed to retrofitting.
- Adherence to building codes from the start; it’s often more cost-effective to build correctly from the start than to fix problems inherited with an older building.
Future proofing
- Custom sites can be constructed with future growth in mind, enabling seamless expansion and adjustments as your business evolves.
Challenges and Points to Consider
If you decide you want to build your commercial space, there are some points to consider that might become challenges, including finding a suitable location, time constraints and financial output.
Locating the land
- Finding the perfect location might be difficult, especially in an established environment. You might have to settle on an area that is less desirable which might also affect visibility and accessibility.
- You also need to consider if the land is properly zoned for the type of building you intend to construct, and if not, can you have it rezoned?
Time
- Building a commercial property typically requires more time than purchasing an existing structure. It is important to determine how much time you have.
Financial Investment
- The upfront costs of building from scratch are often significantly higher than purchasing an existing building and it might take longer to see a return on your investment.
- Lenders may have more complex requirements for securing financing when it comes to new construction such as requiring more equity and higher interest rates. Complex requirements can make it more challenging to qualify.
Buying and Renovating Your Commercial Building
There are several advantages to buying an existing building compared to building a new one. These include saving time, reducing financial risk and simplifying the overall process.
Advantages
Reduced Time Commitment
- Ability to move in or start renovations right away, which can be crucial if you need the space quickly.
- The process of purchasing an existing property is typically faster than having to spend time managing the construction of a new building, which could take months or even years.
Established Infrastructure and Location
- Existing buildings will already have essential infrastructures in place, such as utilities, parking, and proper zoning requirements, which will all save time and money.
- Ability to move into a prime location that could otherwise be difficult or expensive to build in.
Potential Cost Savings
- Depending on the market, buying an existing property can sometimes be less expensive than building new.
- Lenders may view the purchase of an existing property as a sounder investment, which could result in lower interest rates and better financing terms overall.
Challenges and Points to Consider
Renovation Costs
- Existing structures may need extensive renovations to align with your needs or comply with current building codes and ADA restrictions.
- Depending on the age of the building, you might also run into less-than-optimal conditions that need to be fixed, such as lead paint, toxic building materials and asbestos.
Limited Customization
- Existing layouts may limit the flexibility to customize the space to properly fit your needs and some design features may need to be compromised.
- Structural limitations may also limit the ability to fully make the modifications that you desire.
Maintenance Issues
- Older buildings might come with hidden problems that could lead to higher maintenance costs.
- They also may not be energy efficient, which could lead to higher utility fees and the potential need to upgrade materials in the future.
If it’s time for you to start planning your business expansion or move, reach out to the experts at Scholl Construction and we will walk you through the unique advantages and challenges that come with building or renovating your commercial property. We will help you to weigh your options, create a strategic development plan, and with our extensive network of local partners, we will construct a space that is built to last.