2024 Ultimate Guide To Commercial Remodeling and Renovation

Updated On 20 January 2024.

Change is a symbol of transformation, hope, and freshness. And commercial spaces aren’t bereft of this obvious process. Whether you’re planning to upgrade the outdated design of your office space, harmonize multiple rooms into a single expanse, or entirely alter the structure or layout of retail space, commercial remodeling and renovation will come to your rescue.

In this blog, we will understand what is commercial remodeling and the essential steps for executing a successful renovation project.

What is Commercial Remodeling and Renovation?

If precisely defined, remodeling implies changing the interior and exterior of an existing structure, whereas renovation executes the job of refurbishing an old construction into a new one, both terms are used interchangeably. A commercial remodeling project aims to fulfill predominantly two objectives – to churn out maximum functionality and appealing aesthetics and to raise the resale value of the property. It’s a go-to solution for building owners which is not only cost-effective but less labor-intensive.

The cost of commercial remodeling per square foot depends upon the size, length, location, materials used, and weather conditions during the project, so if you have a tight budget, cut short the project timeline. On average, commercial remodels cost between $50 to $150 per square foot. As exciting as the commercial renovation process seems, it’s an equally overwhelming affair demanding every step to be carefully taken. If done right, it bears the power to drastically put a positive impact on your business.

While every commercial remodel is unique, a typical commercial construction project is structured like this :

• Planning
• Hiring a professional
• Designing
• Pre-construction compliances
• Collecting materials & resources
• Construction
• Post-construction

Examples of Commercial Remodeling and Renovation Projects

Commercial remodeling is any construction or renovation project implemented on an existing business space. However, the scope of commercial remodeling depends upon the owner’s goals, budget, regulatory compliances, and inputs by the commercial remodeling contractors.

Below are some examples of remodeling and renovation projects in commercial buildings:

• Installation of energy-efficient fixtures and ENERGY STAR rated appliances like LED lighting, geothermal HVAC systems, and double-glazed low-E windows.
• Roof repair or re-roofing of commercial buildings
• Changing interiors of a restaurant or retail space to match the brand’s style
• Office remodels including transition from cubicle-style space to open floor plans, corporate kitchen remodeling, and upgradation of restrooms
• Repurposing empty spaces of an industrial building into staff rooms or offices.
• Installing ramps, widening doorways, and building accessible toilets to comply with ADA laws

The type of commercial remodeling or renovation project you will undertake depends on your vision for the space.

Advantages of Commercial Remodeling & Renovation

A report by Global Market Insights shows that the commercial remodeling market is expected to attain a 4% growth rate between 2023 to 2032, driven by increasingly ambitious office space renovations and tenant improvements. Here are top five benefits of remodeling your commercial space.

1. Boosts Productivity

Who doesn’t like working in a comfortable office? When the work environment is tailor-made for employees, it enhances their mood and inspires them to be more dedicated to their jobs. Commercial remodels are a win-win situation for both the company and workers.

2. Uplifts Your Business Image & Profits

Imagine you lend your restaurant a makeover conceptualized with a chic theme and adorned with Instagrammable elements. Result? Eager customers to check out your new space and consequently, word-of-mouth marketing that will uplift your business image in no time.

3. Cost-Effective

Without costing truckloads of money, commercial remodeling and renovation ensure you get a restructured and redesigned commercial construction. As a comprehensive deal, several commercial construction companies offer services like design, construction, carpentry, flooring, painting, repairing, etc. for your project.

4. Reduces Business Expenditure

Commercial remodeling boosts employees’ productivity and efficiency, which helps to lessen the overall cost of running businesses. Sarah Jameson, Vice President of Marketing at Green Building Elements, says HVAC systems older than 10 to 15 years can bring higher energy bills to property owners. Nonetheless, US offices spend more than $30,000 or almost 29% of their expenses on utilities per year. Swapping old-style electrical models with energy-saving alternatives through commercial remodeling is a smart way to limit your expenditure.

5. Scope For Safety Checks

While performing remodeling or renovation, commercial contractors examine the building’s damaged areas and vulnerability possibilities. Hence, repairing these areas eliminates the risk of mishaps. Keeping your building in a physically safe condition is the most crucial part of commercial construction services.

New Build or Remodel, What Does Your Business Need?

Choosing between constructing a new build or remodeling an existing structure is an important decision for any business owner. Several factors in play can influence your construction plans.

New Build

If you want to relocate your business to a different location, you may have to buy the property land. Building a new structure will require the demolition and removal of existing structures, followed by site excavation, design and construction of a new build.

Commercial Remodel

If you decide to remodel your existing business space, the space will be redesigned without any structure demolition or excavation. As project timelines for commercial remodels are much shorter than new builds, your business will have less downtime and fewer expenses for the project. Besides, commercial remodeling or renovation not only enhances the aesthetics of the space but also increases the property value in the market.

What Does It Take To Do Commercial Remodeling?

For a successful commercial remodeling project, you must have a clear vision of the whole procedure, set achievable benchmarks, and stay well organized for your dream property to turn into reality.

Here is the ultimate guide to commercial remodeling that throws light on each step right from planning to post-construction.

Step 1 – Planning

A goal without a plan is a daydream. Commercial remodeling and renovation come with their own set of challenges and to overcome them, intricate planning proves to be an antidote to expensive errors.

Following are some of the fundamental factors worth considering before starting your commercial renovation project :

Vision

The foremost step of planning is setting the aim of the commercial remodeling project. Do you want to design a fresh exterior? Do you wish to revitalize your interiors by installing advanced equipment or systems? Whatever your requirements may be, arrange a series of meetings with key stakeholders in your company to synchronize the renovation goals and make sure everyone is on the same page in terms of work and budget.

Budget

Setting clear objectives and requirements considerably results in better budget planning. Since the end goal of commercial remodeling is escalating profits, a balance between commercial renovation costs and estimated profit revenue should be kept. An ideal construction budget includes the costs of materials, employee wages, concession fees, essential services, project timeline, and a margin for overhead costs.

Time

Timing is everything and a realistic construction schedule is the secret to maintaining meticulous facility operations and a smooth transition. It’s always a wise decision to book a commercial remodeling contractor a few months prior to the designated start date. Unexpected delays are inevitable, and for this reason, spare an extra room between the project completion date and the expected move-in date.

Assessment of current conditions

Before commencing the actual process, commercial remodeling contractors verify the Certificate of Occupancy (CO), a legal document indicating the use of the commercial space. They also assess the current conditions and infrastructure of your business workspace and recommend appropriate improvements. Various aspects such as foundation, electrical and mechanical systems, windows, stairways, flooring, roofs, exterior walls, columns, materials used, and others are the major parameters during a site survey. Architects and engineers can conduct an energy-code analysis before commercial remodeling using BIM models to incorporate green building strategies and save operational costs.

Survey of the surrounding neighborhood

The Building Codes and Zoning Ordinances apply to new as well as remodeled structures. If the building is switching its original usage, changed parts may need to be brought into adherence to present codes. Another possibility is that existing features of the commercial building will require renovations – ramps that are too steep and systems that are too energy-consuming.

Inconvenience to Employees or Customers

Are you planning to vacate the building during remodeling? Will you have enough accommodation options for the employees? Figuring out these questions early avoids any inconvenience to company employees and customers during commercial remodeling. Keep the employees well-informed about project timelines.

To minimize the disruption of the commercial remodel, decide on acceptable noise levels during work hours, debris management, construction staging areas, temporary shift spaces, and other factors. If needed, grant permission to your employees to work from home.

Step 2 – Hiring A Commercial Remodeling Contractor

The one defining element that has the power to make or break the whole project is a commercial construction company. Hire a commercial remodeling contractor instead of a commercial construction general contractor as the former specializes in commercial construction.

Throughout the process of planning, designing, budgeting, handling supply purchases, and undergoing legal compliances, your remodeling contractor will be your helping hand. A highly professional remodeling contractor informs you of industry standards, aids you in enforcing smarter decision-making, and works in line with your desired vision.

Remember construction projects are complex and lengthy. In case you and your commercial remodelling contractor don’t share a cooperative business relationship, then the project may disintegrate. And therefore, choosing the right partner is extremely important.

The topmost factors you should keep an eye on before signing a commercial remodeling contractor are as follows :

• Owns a license and certification.
• Offers realistic cost projections.
• Carries years of experience relevant to your type of project.
• Has earned impressive client testimonials and a work portfolio.
• References of past commercial remodeling projects similar to yours.
• Positive feedback from previous clients.
• A large enough team is at the disposal to accomplish the project.
• Establishes regular means of communication to provide work updates.

A good commercial remodeling contractor possesses a team player attitude and is flexible, creative, and welcoming to the ideas of owners. They pay close attention to project details and provide quality work at each step. Overall safety and cleanliness must be a contractor’s topmost priority.

Step 3 – Designing

Chalking out a detailed commercial renovation design saves you from any miscommunications in the further stage of construction. This is also necessary while acquiring permissions from the authorities as well as complying with predetermined building codes for the redesigned portions.

Most importantly, what type of materials will be used, their quantity, color, and texture, everything depends on a structure’s design layout.

An optimal workplace design should meet two requirements – increased functionality and visual appeal.

First, come up with a conceptual design. For that, offer your commercial renovation contractors creative freedom to devise the most efficient and attractive design possible. You’ll be revealed to their potential and building’s maximum limit.

When the final design will get ready, chances are ideas about specific amenities and costs will undergo adjustments to match your commercial remodeling budget. At such times, a proficient architect will present a budget-friendly design without compromising on original ideas.

Step 4 – Pre-Construction Compliances

The construction officially begins after you hand out a notice to remodeling contractors signaling them to proceed with the remodeling process. At this stage, all the insurance, permits, and documents should be obtained.

An unmissable aspect of the commercial renovation project is inspection. Inspection occurs before, during, and after the remodeling process. The foundation of the building, accessibility facilities, plumbing, and electrical systems will go through individual inspections to stay aligned with safety regulations. When building a public space, these are the factors of paramount importance to commercial remodeling or renovation.

Site evaluations are also vital for the sake of avoiding hazardous complications. With an upsurge in urban construction, it becomes a responsibility to check whether your renovation project could have any negative impacts on the environment.

Step 5 – Collecting Materials & Resources

Do you know what plays a critical role in a construction project’s quality and sustainability? Topnotch materials.

The products you will select for your commercial remodeling must correspond to your set specifications and previously agreed-upon prices.

Many times, business owners fall into the trap of cheaper quality materials in an attempt to save money. This strategy backfires, resulting in frequent repairs and high maintenance costs.

With the assistance of commercial construction managers, who procure materials in bulk from reputed dealers, you can reduce the renovation cost per square foot without jeopardizing the quality.

As the saying goes, “Cheap is expensive”.

Step 6 – Construction

It’s a satisfying feeling to witness your commercial remodeling project finally taking its shape. However, this stage involves much more than joining pieces together, and a lot of significant things happen behind the scenes.

Communicate with tenants like employees and customers about the discomforts they face due to the ongoing renovation. Displaying 3D renderings of the end product to them is a great method of project visualization.

Interact with commercial remodeling contractors, sub-contractors, and architects, and stay updated on the project’s progress. Keep track of the building’s performance through site walkthroughs. Examine whether the commercial construction services are properly performed or not.

Step 7 – Post-Construction

Post-construction, commercial remodeling contractors and business stakeholders conduct a walk-through, listing noticeable issues that need to be addressed before the project is completed contractually. To identify such areas that require fine-tuning, a ‘Project Punch List’ comes in handy.

It’s the duty of your commercial contractor to tick everything mentioned on the list. Accordingly, attention will be directed to minor issues that haven’t matched contract specifications, and improvisations will be made.

Once those pending tasks are done, a round of completion inspections should be conducted where all the plumbing, electricity operations, and foundation will pass the final approval.

In the end, the company building has to secure a ‘Substantial Completion Certificate’ which officially verifies that the space is open for tenants for occupation and its intended use. It also permits the general contractor to receive the final payments.

Bonus Tips

These useful tips will help make your commercial renovation or remodeling game strong:

• Allocate Funds Wisely

When it comes to the distribution of resources, prioritize essential items and then move on to the additional expenses. A good judgment and understanding of where to invest more and where to invest fewer leads to sensible fund allocation.

• Reserve A Contingency Fund

The majority of business owners end up squandering more expenditure than they planned for commercial remodeling projects. To cover these unexpected costs, experts suggest reserving a contingency fund of 10-20% extra of the budgeted cost. This is a great preventive measure to tackle emergencies in the long run.

• Search For Economic Incentives

Another financial tip is to garner economic incentives to cut down commercial renovation costs. Economic incentives are mostly provided for commercial renovations. Generally, local financing or tax incentives are attributed to second-generation structures, however, if the refurbishment allows hiring extra workers, then chances are heightened of obtaining additional incentive packages.

• Utilize Building’s Strengths

Does the building already provide enough sunlight inside? Does it have strong columns? As you start renovating the commercial building, you should be aware of what it does well already. Knowing the building’s plus points offers a chance to focus more on its weaknesses.

• Promote Sustainability

No matter what type of business you own, planet conservation is every citizen’s responsibility. Commercial property owners can install solar panels for electricity and central heating. Suggestions could be taken from general contractors to remodel in a way that allows the maximum amount of natural light to enter the building as well as keeps it naturally cooler. These steps will minimize the building’s carbon footprint.

Pulling off a commercial remodeling or renovation project can feel stressful, even for a senior business owner having years of industry experience. A systematic preparation and a detailed guide like the above can tremendously ease the whole remodeling process.

Stay focused, plan, and seek expert help whenever stuck, and your new salon or corporate space will be ready to get relaunched in no time.

Top Trends in Commercial Remodeling and Renovation 

Modern workspaces are dynamic, requiring continuous advancements to enhance their functionality and aesthetics. As a business owner, you must adapt your commercial space to improve employee productivity, energy efficiency, and brand image. Let’s discover the top trends influencing the commercial remodeling industry. 

1. Collaborative Spaces and Open Layouts 

Today, businesses including retail, restaurants, fitness studios, and coworking spaces are strategically removing interior walls and cubicles to design open floor plans. The trend of creating larger open areas encourages teamwork and a sense of shared purpose. 

Many business owners are designing collaborative spaces, for example, presentation rooms, breakout areas, and shared workstations where employees can brainstorm ideas or simply relax. 

2. Eco-Friendly Green Buildings 

Being environmentally conscious has become not just a trend for commercial renovation but a responsibility. Contractors are using eco-friendly construction materials and energy-efficient features like solar panels, natural ventilation, and air for sustainability. You can use natural elements like plants, stone, wood, or water fountains.  

3. Smart Tech Integration 

Technology has taken a front seat in renovation or remodeling trends. Businesses are incorporating futuristic tech into their building designs, for example, touchless features, automated climate controls, smart lighting and acoustic solutions, interactive displays, etc. Moreover, adopting IoT (Internet of Things) has led to the efficiency and safety of employees. 

4. Resilient Structural Design 

Business owners know well the importance of fortifying their commercial buildings against natural disasters. Hence, modern engineers and architects are devising solutions for ensuring infrastructural resiliency in storm or quake-prone areas. For example, strengthening existing structures by bringing regularity in vertical and horizontal load-resisting systems through seismic retrofitting is a common practice in California. 

5. Multifunctionality 

Business spaces are increasingly becoming flexible with movable partitions, convertible furniture, and adaptable layouts to create multifunctional workspaces. For example, a commercial office with foldable desks and modular seating transforms itself into a dynamic event area. 

6. Adaptive Reuse 

The growing remodeling trend of adaptive reuse blends creativity and sustainability. Business owners are repurposing old warehouses, factories, and other commercial structures into functional offices or vibrant retail stores. Adaptive reuse also helps preserve the historical character of the commercial building.

Partner With Us

Our professional long-standing in the commercial construction industry enables us to deliver remodeling and renovation projects with the utmost satisfaction. By choosing our design-build project delivery, you can entrust Constructive Solutions, Inc. to renovate your commercial building with aesthetic and functionality features.

Get in touch to get commercial remodeling and renovation services today.

Case study :

Copenhagen Library

Project Challenge – The owners of a popular library in the bustling city of Copenhagen were planning for its renovation to improve the natural lighting and ventilation of the building. As the existing layout did not accommodate the library’s various activities and events, a commercial remodel was required. The overall goal was to create an inviting reading atmosphere for the city’s bibliophiles. A local commercial remodeling and renovation contractor was awarded this project.

• Solutions –
  The community library to this day, was capped by ridge lights, which now were to be recreated using readymade modular skylights.
• Commercial contractors replaced the traditional ridge lights with modular skylights to let the natural light in.
• The skylights came with an added feature like remote-controlled roller blinds that helped to adjust the daylight. Also, they enabled natural ventilation inside the building.
• The hired commercial remodeling contractor preferred readymade skylights due to budget restrictions and the period of installation.
• To create a flexible space, the remodeling contracting team strategically removed the load-bearing walls to open up the floor plan.
• Multipurpose sections were planned such as seating corners, display spaces, event areas, etc. by adding partitions and reconfigurable furniture.

Products used :
20 fixed and 5 opening modules of skylights (25-40°)

Result :
Three workers per day installed the modular skylights, including 20 fixed and 5 opening modules. They were utilized as smoke vents in cases of emergency. Further, by implementing structural modifications, an open and flexible layout was built to facilitate the evolving needs of readers. Local library visitors experienced a pleasant and collaborative atmosphere where they spent hours reading and socializing.

FAQs

When to Hire a Commercial Remodeling Contractor?

The services of a commercial remodeling contractor are most needful when –

• Your business is relocating or expanding its current space
• Replacement of old and unsafe fixtures with advanced versions
• Incorporation of accessibility features to the building
• Repair of damages or building for future expansion

Is Remodeling different from Renovation?

Yes, both are technically different. Remodeling is the process of altering a structure, whether interior or exterior, from its original construction. For example, adding partitions to make an extra room, changing the floor plan, etc.

Renovation is reinvigorating or repairing an existing space without changing its intended purpose. For example, replacing old light fixtures with modern ones, applying fresh wall paint, refacing cabinets, etc.

What is Retrofitting?

Retrofitting is a process in construction that involves modifying or upgrading an existing structure with new technology to improve its performance. Seismic or earthquake retrofitting, energy-efficient retrofitting, and electrical system retrofitting are some of the common retrofits commercial contractors perform.

Relevant Resources:

• The Commercial Construction Process In 10 Steps
• 10 Ways To Improve Productivity Of Construction Employees