Ground Up Construction or Tenant Finish/Remodel: What’s best for your business?
When opening a new business, it’s understandable to want to do the most cost-effective option. Construction, no matter how you do it, can be laborious, time-consuming, and expensive, and you want your new business on the ground running as soon as possible. So, when looking for spaces for your business to operate, you may be faced with the question: should I build a new building for my business or renovate an existing one?
The answer to that depends on your budget, time, and needs.
The Benefits and Costs of Ground Up
The most obvious benefit to creating a building from scratch is that you can customize it exactly how you want it. You can work with experienced builders to design blueprints for a space that meets all of your needs and fits your specific vision, especially if you have a niche business.
Additionally, a ground up construction can be fitted with the latest technology, appliances, and materials, such as solar energy panels, voice-activated controls, and more.
However, ground up construction is generally more time-consuming and costly because you are creating a new space from scratch. You’ll also have to follow all local building codes, regulations, and safety laws. This could mean a constant cycle of acquiring the right permits for every step of the process, which could delay or stall construction time.
The Benefits and Costs of Tenant Finish/Remodel
Opting for a tenant finish/remodel of an existing building comes with the obvious advantage of less time, labor, and money. Since you’re not starting from scratch, your chosen building will most likely already have a lot of things you’ll need, from the foundation to utilities.
Additionally, starting with an existing building means it’s usually up to code, there may be fewer permits to acquire, and if you’re in need of funding from property investors, renovations are generally considered less of a risk (from a lender’s perspective) than developing a property from the ground up.
However, existing properties do come with their share of surprises. Old buildings may have faulty wiring, mold, termites, or other costly problems, which could delay construction. You can knock down or add walls, upgrade technology, or redo the plumbing, but you’re still confined to the limits of the building, which may hinder your vision or your business’s ability to operate. You may also have to adhere to strict building codes and the rules of a landlord.
The decision to build from the ground up or renovate an existing building is entirely up to you but you can get sound advice and expert work from BHI. Contact us today and we will be happy to discuss your future business location!