Renovating and remodeling a commercial space is a great way to celebrate your business success and growth. Still, there is no need to pour money down the drain. In fact, one should tread carefully since real estate investment can be quite volatile.
You want to be smart about designing and spending, and become a proud owner of the premises that appreciate in value. Moreover, the added value should come with minimal costs. This is the best strategy to reinforce your brand, make an impression on your clients, and support your future business endeavors.
1. Tricks of the Trade
House flipping and commercial speculation are great examples of reaping maximum rewards from your investment in real estate. And if you want a good home base for your operations, renovation poses a more affordable alternative to purchase or lease. Even a run-down office space can be transformed into a prime piece of the business real estate.
The investment of time and money should be worth it, provided that you achieve an exponential increase in equity. Bear in mind that you have options such as leasing off a part of the renovated premises to some other business. Also, it might be possible to negotiate a deal where a leaser takes care of remodeling costs or at least one part of them.
2. Numbers Game
Assessing the costs of upgrades and their ROI is paramount to making informed decisions. Strive to factor in the initial costs of the property and designate a sales target for the premises after renovation, based on sales of similar properties. The good news is that you do not have to do the math yourself. You may utilize online tools to calculate the costs of roof repairs, insulation upgrades, and bathroom renovation projects.
If you have to go for demolition in order to start the renovations, see to it that you use as much of existing framework as possible, just do not jeopardize the structural integrity. So, try to keep the electrical panels, load-bearing beams, plumbing, cable and phone wiring, gas lines, etc.
3. Maintenance and Prevention
Conduct a preventive maintenance and identify any structural problems like cracks and breaks on the walls and other surfaces. Keep a close eye on the electrical system, as well as fire and sprinkler ones, and steer clear of any fire-related risks. Replacing entire structures can be costly, albeit upgrading the flooring, lighting, and ceilings are almost always a safe bet.
New LED lighting fittings can improve employees’ focus, add visual appeal to the space, and also save you a considerable amount of electricity. Also, focus on the color scheme: This is an inexpensive way to give your space a makeover and set the beautiful backdrop for other design elements and fixtures.
4. The Art of Renovating
Remember that investing in quality materials and equipment pays off in the long run, and also enhances the perception others have of your business. Another benefit of a well-designed space comes in the form of boosted morale and productivity. So, add more features to your business environment and blend top-notch functionality with visual bliss.
Invest in one centerpiece such as a water fountain to make your premises stand out from the rest. Sterile cubicles people call offices are no longer the only viable layout. State-of-the-art workplaces are popping up across the globe, and business owners do not refrain from going bold and experimenting with solutions such as open-floor plan.
5. Cover All the Bases
Renovation projects are a learning process and often you are faced with nasty surprises you have not prepared for financially. So, weigh your future plans, build in financial buffers, and see what the best way to finance the remodel is. The ROI will depend on what you intend to do with the property, stick to it, rent or sell it.
In any event, the ultimate goal is to infuse the commercial property with more value without blowing the budget. At last, if you want to stay in the premises for a while, you ought to increase the brand and merchandise value of your business, and tailor the space to your business needs.