Carrying out a successful renovation on a commercial property is challenging. At first, the project may seem simple and straightforward, but things get complicated and expensive as gears start turning. Nonetheless, renovation is a great way to add value to your building. Remember, as your tenant’s business grows, so does its office setting. These expert tips on renovating commercial property can guide you on critical areas to focus on if you feel stuck on your renovation project.
1. Have clear objectives
Why are you renovating your building? Are you looking to maximize its value? These are critical questions that you should ask yourself before you begin renovating commercial property. If the building is dilapidating and needs a touch of perfection, you can prioritize the renovation project. Remember, clients are less attracted to old-looking houses, and those that agree to rent may end up bargaining for decreased rent. However, if you are renovating for aesthetic purposes, the project shouldn’t be on your priority list.
2. Seek qualified contractors
Your contractor influences the outcome and the cost of your real estate renovation. It is advisable to seek professional and qualified contractors with a track record of successful projects on their portfolio, including any jobs they’ve done renovating commercial property . For instance, if you are in Atlanta, you can run a quick search on Atlanta Commercial Construction and Renovation on the web, and it will give you top contractors in your region.
3. Balance your investment and returns
Remember our initial point on objectives? Well, the main aim of your renovation is to increase revenues through rents. Therefore, when budgeting for renovations, keep in mind the returns of investments. The rule of thumb is to invest less than what you expect to gain, and you must have a proper balance between costs incurred and the expected returns.
4. Get appropriate certifications and permits
Before getting started on renovating commercial property, you need to get the appropriate paperwork. Your local authorities reserve the right to rescind any renovation plans, and you may need several permits or risk getting massive fines in the future. Local authorities ascertain that the renovations meet set industry standards and tenant rights are not violated.
5. Focus on security and safety
Most tenants are often impressed by the aesthetics of a building, but security is always the ultimate purchase drive. Keep in mind aspects such as window security, ventilation, fire safety, and lighting while renovating your building. Additionally, if your tenant feels that your building is less secure, they can sue you under work safety law.
6. Go for adaptability
When renovating commercial property, have your ideal tenant in mind and create a space that suits their needs. Renovations should be flexible and adaptable to changing client needs. What if their business grows? Will your renovation address expansion needs? Your contractor should be able to address such questions.
7. Find economic incentives
When planning on renovating commercial property, search for economic incentives. There are always local economic incentives targeting second-generation buildings that you can utilize. Incentive levels increase if your project will hire extra workers and enhance the economy.
8. Have a budget
After considering everything else involved in renovating commercial property, sit down with your contractor and draw an estimated budget. Always set your budget at least 10% higher than your contractor’s quotation to cover any adjustments.
Renovating commercial property is a demanding task and requires absolute attention and keenness. However, if planned appropriately, the project can go smoothly and be profitable in the long run.