Before you begin a major commercial renovation, there are some important things to consider. Since renovation projects are a huge investment of time and money, business owners who are renovating their commercial buildings for the first time should ensure they have carefully planned the project.
In this blog, we will introduce and explain to you the essential factors that you should consider before starting your commercial renovation project.
What is a Commercial Renovation?
Commercial renovation is upgrading or remodeling an existing business space like offices, retail shops, medical facilities, warehouses, or any other buyable or leasable commercial space.
Renovating your commercial building improves its aesthetics, functionality, and square footage which helps attract new clients, workers, and property buyers.
According to the Remodeling’s Cost vs Value Report, improvements such as HVAC electrification, steel door installation, kitchen remodels, and window replacements seem to bring the maximum ROI.
12 Things to Consider Before Starting a Commercial Renovation Project
Take into account the following factors to ensure seamless planning and execution of your commercial building renovation.
1. Conduct a Property Assessment.
Before starting the commercial renovation process, the first thing to do is conduct a thorough property assessment to know its existing conditions. You can hire a professional inspector to unearth hidden issues that may affect the project.
Inspect if there are issues related to structural integrity, safety compliance, or building code violations. For example, the commercial building may lack ADA-compliant features or include outdated safety sprinklers, emergency exits, or fire alarms.
Assessing the existing conditions of the commercial building will also help identify the scope of renovation needed. For example, replacement of poor lighting, expansion of parking space, or demolishing partitions to create an open space layout.
2. Determine the Purpose of Commercial Renovation.
What do you want to achieve with this renovation? Before starting your commercial renovation project, establish a clear vision that will help drive successful results. Firstly, determine your goals for renovating the commercial space:
- Space efficiency for employees
- Increasing property value
- Achieving sustainability in operations
- Rebranding your business
- Complying with accessibility regulations
- Expanding commercial space for future growth
- Modernizing facilities
Once you have identified the purpose of the building renovation, consider the requirements of the job. For example, if the goal is to rebrand your business, update interior design elements or replace branding signage may come on your list. Based on the property’s evaluation, define renovation objectives which will guide you to make informed decisions throughout the project.
3. Talk to Your Employees.
It is equally important to get input from other key decision-makers in your company before you begin the commercial renovation. Taking from their first-hand experiences, employees working in your commercial building can offer useful renovation suggestions tailored to your business needs, and identify additional areas that need upgrades.
For example, they can pinpoint improving the layout to optimize the workflow. Team members can also propose designing a collaborative breakroom or adding efficient storage solutions for better organization. Their valuable input can ensure the overall success of the commercial building renovation.
4. Determine a Budget for the Renovation.
Given commercial renovations are expensive, having a good idea of how much you are willing to spend can reduce the risk of cost overruns. Consider developing a detailed construction budget before starting the project.
Once the budget is ready, the interior designer and the contractor can offer suggestions within your range. This will prioritize the essentials and keep your expenses in line.
Take into account the cost of materials and labor, permits, regulatory fees, cost of arranging a temporary workspace, and other necessary expenses. Make sure you allot a contingency budget of at least 10% to cover unforeseen changes or reworks.
If there are budget constraints, apply for financing options such as commercial construction loans or mortgages.
5. Establish a Project Schedule.
How long are the renovations likely to take? At what business hours will the construction process take place? Talk to your commercial contractor to establish an optimal schedule that will let you accomplish the renovations in a reasonable timeline.
Inadequate schedule planning can cause construction delays. That is why, your commercial renovation schedule must outline timelines for specific tasks to be completed at each stage of the project.
For example, break down the renovation schedule into specific timelines for finishing different phases; demolition, framing, wiring, and interior finishes. Such a meticulous approach will result in seamless transition and execution.
6. Research a Few Contractors Before Hiring.
Be sure you do your homework before you hire a commercial renovation contractor. Talk to other businesses and companies who have used renovation contractors in your area.
Examine projects previously undertaken by the renovation contractors. Confirm that their style aligns with your vision for the commercial space and that they possess experience in the specific type of work you intend to do.
Check their licenses, online reviews, certifications, and client references you can reach out to. Evaluating different contractors helps you to identify the best option available. Many commercial renovation contractors will provide a free quote or consultation.
7. Inspect the Certificate of Occupancy (CO).
A Certificate of Occupancy (CO) is documentation that instructs how you can use the building legally. Depending on the document terms, you may have to limit the commercial renovations and avoid building violations. The Certificate of Occupancy states if the commercial space is usable for office, restaurant, manufacturing, retail, or other business purposes.
Hence, project owners must study the Certificate of Occupancy before starting the renovation work. When working in a lease space, there may be some restrictions on tenant improvements (TIs) for which you need to obtain landlord approvals. Even if you own the building you are renovating, identify existing and potential code violations with an experienced general contractor.
8. Plan for Future Expansion.
When planning the renovation designs of your commercial space, it’s important to consider various future requirements. If the company anticipates long-term occupancy of the current business property, then strategically investing in its remodeling will prove to be fruitful.
For example, for a growing number of staff members and product inventory, consider adjusting the layout, incorporating extra storage spaces, and planning new rooms in your renovation design.
Commercial renovations are also useful for enhancing a property’s resale value. So, if you are planning to sell your business space in the upcoming years, consider avoiding major remodels or renovations that may be difficult to eliminate.
9. Keep Sustainability Goals in Mind.
Today, many business owners are mindful of their environmental impact. Before proceeding with your commercial renovation, consider how you are going to make it sustainable and financially feasible. Along with your commercial contractor, devise solutions to reduce energy consumption, waste, and leverage green building practices.
You can consider purchasing eco-friendly materials such as LED lighting, solar panels, energy-saving HVAC systems, and ENERGY STAR appliances, sourced from local vendors. Moreover, bringing in natural light by designing large windows or using recycled materials will make your business more sustainable.
Renovating your workspace for sustainability goals not only minimizes your carbon footprint but also saves long-term operational costs.
10. Apply for Building Permits.
One of the most crucial things you should consider before starting your commercial renovation project is permits. Depending on the modifications you are planning for the space, apply for a permit from your municipality or local building department. There are many different building codes to consider including fire safety codes, mechanical, electrical, and plumbing codes.
For example, adding walls or making changes to emergency exits will require the commercial general contractor to acquire a permit. If your commercial building has historical significance or is located near a landmarked structure, there may be additional permits. Failing to obtain building permits can lead to costly fines and delays.
11. Arrange for a Temporary Workspace.
In case you are planning an expansion involving demolition or remodeling the existing structure, it will cause major disruptions, and create dust, and high levels of noise for building occupants. Any type of ongoing commercial renovation can disrupt your business’s day-to-day operations, negatively impacting your revenue. That is why, consider arranging a temporary workspace for your employees and clients to function comfortably until the renovation is finished.
Notify all team members beforehand and make arrangements for them to shift during the construction process. Depending on the team’s size, seek an alternate location for your business. Schedule the renovation timeline during the company’s non-work hours and weekends. Besides, relocating tenants to a temporary commercial space will also ensure their safety.
12. Review a Written Renovation Contract.
As always, sign a contract with your commercial renovation contractor no matter the size of the job. This will keep your contractor accountable and will ensure that your best interests are protected during your commercial renovation project.
See if your commercial renovation contract includes the following elements:
- Contractor’s physical address and license number
- Scope of renovation work
- Start and end dates of the construction project
- Cost breakdown of materials, labor, and any additional expenses
- Total fee for the job, a payment schedule, and modes of payment
- Terms related to dispute resolution
- Change order procedures
- Warranties, liability clauses, or indemnification clause
- Signatures from both parties
A well-written renovation contract outlines project specifications and acts as a guide when disputes arise. When one party files legal complaints against the other, the renovation contract helps protect them from unfair penalties. We suggest consulting a real estate lawyer to scrutinize the written agreement with your commercial renovation contractor.
Final Thoughts
Commercial renovations can be a daunting task for beginners, needing consideration of various factors so that everything goes smoothly throughout the project. Establishing your renovation goals, budget, and timelines, researching experienced commercial contractors, applying for permits, and planning for future growth will set your project for success. Most importantly, review the building renovation contract before signing the deal.
Partner with Us
Whether you are planning for a commercial building renovation, tenant build-outs, or general contracting services, Constructive Solutions, Inc. is here to help you. Our reputation as a commercial general contractor with decades of experience shows our commitment to delivering exceptional results.
Contact us today to discuss your commercial renovation project.
FAQs
What are the different types of commercial renovation services?
Typically, commercial renovation services may include interior renovation, kitchen and bathroom remodels, re-roofing, MEP installation, permitting acquisition, and accessibility compliance.
How much does a commercial renovation cost?
Depending on the building type, scope of work, and location, renovating a commercial space can cost between $30 and $450 per square foot.
What are the trending renovation ideas for a commercial building?
Here are the popular trends to try for a commercial renovation project:
- Open layout workspaces
- Green building/biophilic interior design
- Multipurpose spaces
- Integration of customized technology
- Design focused on employee well-being
Relevant Resources:
Ultimate Guide To Commercial Remodeling and Renovation
Constructive Solutions, Inc. is a full-service commercial construction company serving San Francisco and Bay Area.
Whatever your vision, we have the resources, experience, and insight to make your concept a reality, and a space where your business can flourish.
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