Almost every business aims to reach the point where they will be able to move into their own office space or upgrade from an outgrown building. This leads to the age-old question: Should you opt for renovating a recently acquired structure? Or will building from the ground up yield the highest return on investment?
Choosing between remodeling what’s currently available or constructing a whole new space highly depends on the goals of the stakeholder. For those looking to upgrade, here are three factors to consider before opting to renovate or build a new structure.
Whether residential or commercial, the budget can play a major factor. Construction rates have been rising over the past few years. In 2018, costs increased by more than 5% and they continue to climb. This hike is mainly due to labor shortage and the rising cost of materials.
Starting a new building from the ground up may require a huge significant investment, and most certainly double the amount of labor. Other than the down payment, loan and closing fees, the architectural design and contractor fees, building inspection costs, cost of land and the amount needed to establish utilities should also be considered.
If one has the budget to push through with the stakeholder’s vision in mind, cost should not be a hindrance. Otherwise, renovations are generally more cost-effective, mainly due to fewer materials and manpower needed to complete a project.
Ask yourself: Is flexibility a huge factor? If yes, then it is better to build from the ground up, rather than exhausting your resources on what is currently available. It gives owners the freedom to implement new technologies, trends, and even go as far as incorporating a company’s brand into how the structure will be built.
One successful example is the guitar-shaped 36-floor hotel that was built in Florida. This $1.5 million project was 10 years in the making, but the result perfectly fits the Hard Rock brand. It paints a unique sight in Florida’s cityscape and is distinctive even from afar.
This is not to say that remodeling does not give owners flexibility. Although limited for some people’s tastes, the best thing about renovations is that there is already a canvas to build from. If the project is not as complex and quick turnaround time is the priority, then remodeling may be the better and cost-effective option.
Lastly, the length of time of the project should be taken into consideration. When compared to structuring new buildings, renovations may seem to take up less time as there is already an existing edifice to work with. The only question to ask is if what is already available fits the owner’s needs and intended use.
The National Association of Home Builders estimates that construction of an apartment space takes around 11 months, excluding the time needed to secure the required permits.
However, this can also depend on a case-to-case basis. As an example, renovations may usually take less time, but budget constraints and a more detailed design may also hinder its completion. Similarly, one can breeze through a new construction, even when a new structure has to be built from the ground up, if the owner has liquid assets specifically dedicated to the project.
Before deciding whether to renovate or build a new structure, consider the stated points. It is also important to assess the kind of project in mind as the timeline and cost may still vary depending on how detailed the plan is, no matter whether it’s a retrofit or a new construction.
About Triple Crown Construction:
Triple Crown Construction is a Partner-Grade provider specializing in pre-construction, commercial construction and hospitality renovation. This allows you to focus on driving revenue while we focus on your construction projects.
Since 1991, TCC has provided expertise in delivering successful turnkey solutions to its clients across the nation. Efficient processes and cutting-edge technology has enabled TCC to maximize client value while minimizing project pitfalls. A core team of Estimators, Project Managers and Superintendents provide guidance and support to a network of TCC Certified subcontractors. Nestled in picturesque Frederick County, MD, TCC is an active member of the community, routinely participating in local events and charity programs.
We are Partner-Grade™
Partner-Grade is a shared commitment to and investment in our Client-Partners’ interests. We offer confidence through knowledge in the construction process, turnkey projects and a solution-oriented approach. Our brand virtues of efficiency, clear communication and providing an excellent customer experience are at the core of every project. Can you afford to work with a firm that’s not “Powered by Partner-Grade?”