When a business is booming and growing, it tends to require more space to expand. Entrepreneurs have to make a choice between renovating their existing space and building a new space altogether. Both choices offer their own advantages and shortcomings.
Here are some factors to consider when making this decision:
This is one of the first things considered by a business when making any major investment decisions. Have your finance team draw up a potential ROI for both possibilities to help you make the best choice. The net present value will also have to be considered to help you make the most lucrative decision.
Constructing a new building for an organization is a time-consuming task. It can take months before the space is ready and you can begin operations within it. Renovating the existing property is a quicker process, but it can be quite limiting. Therefore, the time limit is a very important consideration since both options have drastically different timeframes.
Since renovations are done on the existing premises, business operations will either have to be halted for the duration, employees will have to work from home, or alternative arrangements will have to be made.
This is an important aspect that business owners should consider when making the decision. Reusing and building on the existing structure is generally considered more sustainable than constructing a new one.
However, business owners can use sustainable materials and eco-friendly fixtures when building a new property, while selling the existing space to be reused.
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Image Alt Text: Eco-friendly lighting in a commercial building.
The extent to which a property can be renovated depends on the existing property itself. There’s only so much expansion possible when the property is small. If a business requires significant expansion to streamline operations, a new building is probably the best idea. It allows the business owner to construct a building from scratch and ensuring all the requirements are fulfilled, without being restricted to the property’s original layout.
Commercial buildings are often restricted by building codes and other legalities. A building that’s considered a historic landmark, for example, probably won’t be granted the permission required for renovation. Zoning laws can also restrict the kind of building you’re allowed to build in a location of your choice.
D.W.Inc. is a commercial construction service based in Ottawa that can help enhance the value of your property. We have worked on many commercial and residential projects, creating beautiful spaces according to our client’s requirements. Have your organization’s office constructed in Ottawa by D.W.Inc. We also provide commercial renovation services. Call + 1 (613) 276-4447 for more information about their services.