Having an expanding business is a great problem to have. Unfortunately, that means you have to make certain decisions for your company that could make or break its success. Should you expand your business into an existing structure, and renovate? Or should you construct an entirely new customized building from the ground up? Here are some tips to help you make the most cost-effective decision for your company.
What Is The Difference?
A ground up construction project is constructing a building completely from scratch – new walls, footings, foundations, etc., where no building existed before. A renovation is when some of a building’s components are demolished and rebuilt, but some structural elements are left intact. If your renovation is a combination of the two, it is typically referred to as a renovation. Check your local building codes to determine which category of construction your project falls under. There are benefits and disadvantages to each type of construction, and it’s important to learn the differences so you can decide which type is right for your company.
Renovation projects tend to be more cost-effective because a lot of the structural work is already completed for you. Building permits are typically more easily granted to renovation projects as opposed to ground-up construction projects. In addition, renovating an existing building can sometimes give your business a more desirable location. The down side to renovation projects is that you’re not given as much flexibility in the construction of your building.
General contractors must work within an existing framework, and that may or may not be in the best interest of your company. In terms of budget, typically a renovation costs less money than a ground-up construction. However, it can sometimes be more costly to do a renovation, as you never know what problems you might find in the walls of old buildings. New building codes may require you to update a lot of existing components to bring them up to current code, which can quickly add unforeseen costs to your project’s bottom line. Renovating an existing building may also limit your company’s ability to grow in the future, as you are restricted to the current physical boundaries of the existing building.
Ground-Up Construction Projects
Ground-up construction gives you unlimited flexibility. A ground up construction company can customize your building to meet the needs of your company in terms of work flow, capacity, machinery, etc., but that flexibility comes with a price tag. Commercial building construction usually costs more than renovation. However, depending on the local real estate market and the existing buildings available, ground-up construction can sometimes be cheaper than a renovation because you’re not having to fix problems or bring outdated components up to current codes.
Another benefit to commercial building construction is you can build out your new building in phases. As your business grows more, so can your building. On the down side, it can be more difficult and take longer to obtain the necessary permits to construct a new building from the ground up. Ground up construction projects typically take more time than a renovation project.
As you examine the needs of your company and determine which type of construction to move forward with, work with our general contractor to discuss through your options and remember to think long-term. Consider your budget and determine which option will bring your company the most benefit now, as well as in the future. Contact Sierra Group today to get started with your next project.