For many growing businesses, a time will come when their company needs more space. Whatever causes the need for expansion, owners will need to choose between building a brand-new commercial building or renovating their current space. The renovation of a commercial building is usually less expensive than a design-build, especially right now as material and labor costs continue to rise. If environmental impact is a concern for you and your commercial space, demolition and rebuilding produces more carbon emissions than renovation. There is nothing greener than reusing a building that already exists. Reducing your building’s carbon footprint and saving money are just the beginning! Here are the key reasons to look at reuse.
It is fiscally wise to reuse buildings because demolishing a building is rarely cheap and a lot can be done with retrofitting on a budget. If energy costs are skyrocketing for a building operator, investing in efficient systems upgrades, especially if energy systems are nearing the end of their life. Advances in technology can quickly payback time for these upgrades. When done right, commercial renovation delivers high ROI while improving property value. It is also an opportunity to implement cost savings improvements that will not only appeal to your bottom line but to your customers as well! Practical, budget-conscious clients can plan renovations over multiple budget cycles to slowly transform their building.
Smart Land Use
Retrofitting an existing building will lower infrastructure costs because they already have sewer, utility, and transportation connections. Reusing existing buildings also eases the demand for new land development and preserves historical sites. Existing buildings play a vital role in the history of a place and the memory of its people. At Omni Commercial Group we know that all buildings deserve a second chance! Reusing a commercial property creates an opportunity to enhance the surrounding community space with improved accessibility. Consider adding green spaces, bike lanes, or additional pedestrian pathways to the existing infrastructure. Renovating an existing building to fit the needs of your community can be an exciting challenge and often results in a one-of-a-kind space.
Retrofitting existing buildings is ideal for industries that cannot stop operations to undertake key upgrades. Some building types like hospitals, clinics, recreation centers, civic buildings, and more must remain operational as much as possible. Omni Commercial Group can plan phased renovations and retrofitting to allow for operations to continue. This phased approach is also beneficial in spreading out capital investments over time periods. Our critical path management program ensures smooth communication and transition from start to finish. Our experience and attention to detail will ensure your space is completed on time, on budget, and as planned.
Tax credits and incentives
Government incentives make renovations and retrofitting for energy efficiency more welcoming to clients. Building owners should research information about the tax deductions available for improving the energy efficiency of commercial buildings. Tapping into government tax incentives for energy efficiency can stretch renovation budgets further. According to Ben Evans of the U.S. Green Building Council (USGBC), recent updates to the Sec.179D Tax deduction made new pathways for using this deduction in renovating existing buildings. His recent article explains, “For example, a building owner improving a 40,000-square-foot office building’s EUI (energy use intensity) by 35% with a retrofit that incorporates high-efficiency lighting, improved insulation and high-efficiency HVAC will qualify for a $140,000 tax deduction on a project that, in most cases, already pays for itself over time.” Always consult a tax professional on questions for specific situations.
The decision between a design-build or renovation depends heavily on your unique situation and budget. An estimate from a team that’s experienced with both new builds and renovation, like Omni Commercial Group, can help make the decision clearer. Omni Commercial Group has hundreds of years of experience through its team of successful project managers and construction specialists. From beginning to end we can handle your commercial project from new build, tear down, rebuild, or update at your current location. Contact us today to get started on your new commercial space.