Renovate Your Commercial Building Like a Pro: 10 Expert Tips

Updated On 20 May 2023 With 3 Bonus Tips on Commercial Building Renovation.

  Renovating A Commercial Building Is A Long-Run Investment For Business That Helps Enhance Your Property Value.

By renovating your commercial building, you’ll increase your business’s footfall as it will get a more attractive space that will draw the attention of the locals, it motivates the employees to be more productive by providing them sufficient and better space to perform their tasks and also ensures that your space has the appropriate safety installations.

A commercial renovation project is a serious endeavor to pull off. The objective is not only to upgrade the property’s market value but also to improve functionality and ensure safety of the working employees. Helping you cross that extra mile, we have listed ten expert tips on how to renovate your commercial building like a pro.

Let’s discover each of them.

The Commercial Building Renovation Tips:

Tip #1 First, Examine The Certificate Of Occupancy

 

Verifying the Certificate of Occupancy should be your topmost priority before commercial renovation. This certificate shows how to use the specific commercial property legally; it will be mentioned if you can use it as an office, a cafe, and other commercial spaces, it will even have detailings as to how can use a specific space of the property for your proposed commercial activities (post-renovation). If you have difficulty finding it, you can download an official copy of the same from the available online database. Changing a CO is costly and, in some cases, impossible.

Tip #2 Have A Clear Motive For Your Commercial Building Renovation

Identifying the purpose of the commercial renovation is of prime importance. Objectives such as whether the renovation is just for giving the building a facelift or going to be a major remodeling for structural changes in the property must be considered. Do you want to increase the functionality of the space, create a more welcoming ambiance, or better display your products and services? Don’t forget to involve your company’s employees in the planning process and ask them for insights or renovation ideas. Having a clear idea of the motive will help plan the commercial renovation by prioritizing and focusing on changes that matter and allocating a higher budget.

Tip #3 Balance Investment and Returns

The major purpose of your commercial building’s renovation is to increase your revenues. Going overboard with spending without considering the returns may incur losses and lead to non-recovery of capital expended. A right balance must be found between the cost incurred and the expected increase in value and revenue to ensure an acceptable return on investment.

Prepare a realistic renovation budget with your commercial general contractor who will factor in prices for cost per square foot, resources, labor, constructability, permitting, and several other aspects to develop accurate cost estimates. An expert opinion or an evaluation of other similar properties in the vicinity can help in the same. An expert opinion or an evaluation of other similar properties in the vicinity can help in the same.

Tip #4 Gather Knowledge About Permits Required For Commercial Building Renovation

A few permits may be required from the local authorities before commercial renovation can be initiated. An owner must ensure that they have a comprehensive knowledge of all the formalities and permission required for the construction project beforehand to avoid any complications with the future governing bodies. This will also ascertain that all the building renovation work conforms to the specifications laid down by these organizations. The Building and Safety Division of the Public Works Department assures compliance with California Building Codes and related ordinances. The division reviews and approves plans, issues permits and provides building inspections during the construction phase of the project.

Tip #5 Review Your Building’s Envelope

A commercial building’s envelope includes everything that divides the outside and the inside. This includes your building’s doors, roofs, and windows. Majorly, people neglect the convenience of disabled people, but as per the “Americans with Disability Act of 1990“, every company must offer thoughtful services for disabled people. Commercial building renovations will usually identify the demand for the buildings to follow the Act.

Tip #6 Be Ready for Over Budgeting

 

Because there are estimative and predictive factors involved, very rarely does the budget for renovating a commercial building stay within initially allocated fund limits. Certain refurbishment that was not originally considered and is only brought to the notice after undertaking the commercial renovation may add to the expenses. A 10% to 20% stretching of the budget may be expected, and a capital reserve must be maintained beforehand.

Tip #7 Find the Right Time to Undertake The Commercial Building Renovation

Renovating a commercial building means it is going to be closed until the work is complete. This will affect the businesses and organizations operating from the building. Hence, it is ideal that the renovation work must be undertaken during that time of year, which will affect these organizations the least. The duration of the commercial renovations must be kept to a minimum and, if possible, should be done in a phased manner.

Tip #8 Renovate for Utility

Always remember, when doing your commercial building’s renovation, the utility aspects must be kept in the limelight. If there were any changes that the previous lessee or occupants of the building might have suggested or requested, the feasibility of including the same might be considered. Any modifications that might attract more prospective customers are going to be beneficial to both the occupants and the owner of the commercial establishment.

Tip #9 Select The Right Contractor For The Commercial Building Renovation

The right commercial contractor for your commercial building renovation project would be the one with whom you can easily communicate, who is known for delivering quality work rather than being cost-efficient which you can get to know by taking the opinions of the contractor’s previous clients, also make sure that the commercial renovation contractor is licensed to carry out building modification projects in your area and is capable of getting the required permits for the renovation.

If your commercial building renovation is in California, you can surely contact us to get a proposal for your project.

Tip #10 Everyone Should Be Well Informed

There are many stakeholders in a commercial building renovation project, and the project team would include designers, engineers, material suppliers, and many more. Ensure that the renovation contractor is keeping every stakeholder of the project well-informed of the project’s progress if there are any misunderstandings that could cause delay and rework activities for your project; this would eventually increase your project cost and time.

The 3 Bonus Tips For Renovating A Commercial Building.

Go Green for Sustainability

Minimizing the building’s adverse effect on the environment is mandated by law in some legislations, but it also implies that an organization is considerate towards nature. The usage of solar panels for central heating and electricity generation can help minimize the building’s carbon footprint. Designs that allow the maximum amount of natural light as well as keep the building cooler lower the impact on the environment and can also be considered. Implementing green building solutions to your commercial renovations can lower the company’s annual energy costs by 30-40%.

Consider Tax Benefits

Multiple tax benefits can be benefited from while renovating a commercial building. Tax deductions apply to costs incurred for renovation, restoration, and reconstruction of certain buildings.

According to the Internal Revenue Service, the percentage of costs owners can take as a rehabilitation credit is:

• 10% for buildings placed in service before 1936.
• 20% for certified historic structures.

Multiple tax benefits can be benefited from while renovating a commercial building. A legal counsel with an attorney or accountant can help an organization apply for various tax concessions and financial incentives.

Keep in Mind Future Needs

There is no point in spending money on commercial building renovations and having to remodel it again after a few months. While making any changes to the building, future needs must be considered so that they are easy to incorporate without major restructuring.

Conclusion

Undergoing commercial building renovations shows a business owner’s intentions to facilitate its tenants with the best amenities and quality environments they deserve. It’s equally profitable to the owner as a commercial renovation boosts a property’s value in the market. While accomplishing the entire project might feel overwhelming, effective planning, budget management, scheduling, cooperation with tenants, and regulatory compliance will steer you toward a successful building renovation. Make sure you partner with a reputable contractor who is dedicated to efficiently providing high-standard renovation services.

FAQs

How do I manage the renovation process and minimize disruptions to the tenants?

Establish a master plan with your general contractor that facilitates strategies to minimize disruptions during the building’s renovation process. Include employees in design and construction planning, offer remote work options, and explain to them the benefits of renovating the property.

How to ensure that the commercial building renovation has been successfully executed with high quality?

Throughout the commercial renovation process, ensure your project team implements quality control measures such as defining acceptance guidelines, scheduling inspection plans, and using punch lists. The commercial renovation contractor should also perform multiple inspections to check if the modified space meets all safety requirements and building codes.

Will I have to hire an architect for my renovation project?

This depends on what type of project delivery method you choose. If you work with a design-build general contractor, they will handle the entire renovation from design to construction. Or else, you can hire your own architect to provide design services.

Relevant Resource:

• Achieving Sustainability Milestones for Your Corporate Facility
• Accessibility and Commercial Renovations: How to Ensure Compliance with the California Building Code