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Commercial Property Renovations: The Pros and Cons

In an increasingly modern world, many industries are finding themselves struggling to keep up with new technology, styles, and practices. One such aspect of this universal struggle is the need for businesses to maintain a public image that is contemporary with popular trends. For many businesses, this includes the need to keep your building up to date and in a presentable state to your customers. Some owners may elect to take on the endeavor of remodeling themselves, while others choose to hire contractors to complete such work for them.


Business with open sign

Nevertheless, before making such a big decision, it is important to remember the necessary steps one should take to ensure that they are making the right choice. One should also weigh the "pros" and "cons" of their decision to decide whether it is an ideal path for them or not.


Here are some things to consider before renovating your commercial property:


  • Location: What does my location say about my business? How does it contrast to the area and businesses surrounding it? How long do I plan to stay at this location and is remodeling worth the investment? Am I required by my landlord (if applicable) to return my property back to its original state after I move out?

  • Budget: How much am I willing to spend? How much time do I want this project to take? What are my opportunity costs (i.e. closing, turning clients away, etc.) of having work done?

  • Licensing and permits: Do I need any licensing or permits for the renovation process or use of my newly renovated property?

  • Maintenance cost: How much will it cost to maintain the improvements done on my property? Will this renovation result in needing additional resources for my business?

  • Clientele: What is my target demographic? Will the renovations be applicable to them, and will it benefit my business substantially?



Pros and Cons:


Pros:

  • Improved public image: Your newly renovated property is much more likely to attract new customers and increase the amount of returning customers in the future. For many industries, this could also justifying charging more for your product or service.


  • Increased morale: Having improvements done in your building will very likely provide a more suitable work environment for yourself and your employees.


  • Protection: Having renovations done on your property can implicitly provide protection to the underlying components of the structure.


  • Competitive: A newer looking property can prove to be advantageous over one's competitor's in the same industry.


  • Property Value: The better your building looks and functions, the higher the property value can be. Improving the cosmetic appearance of your business can increase property value substantially.


Cons:

  • Inconvenience to clients, employees, and owners: Granted that you do not close entirely for the duration that work is being done on your property, the presence of contractors can often be disturbing for everyone in the building. Environmental pollutants such as dust, chemical odors, and loud noises could very likely make your customers uncomfortable.

  • Potential to turn new clients away, or reduce returning customers, while work is being performed: Following from the previous point, the discomfort of interior remodeling will often drive customers away and, in turn, cost you even more money. This is known as "opportunity cost".

  • Cost: It is often difficult to find a reputable contractor that can stay within a reasonable budget.

  • Risk: With every renovation project, the client has to bear the risk of potentially working with an inexperienced or unprofessional contractor, especially if they are looking for the lowest price possible.


Now that we've weighed the pro's and con's, it's time to make a decision. However, it does not always have to be this difficult. At Shearer Property Management we provide commercial overnight services. This means that we show up when you close and give the property back to you when you're ready to open. Doing this allows us to eliminate the possibility of inconveniencing everyone in the building, as well as reducing the opportunity cost we mentioned earlier to a minimum. As always, you can feel free to reach out to us through our phone or email, and we'd be happy to answer you!


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Call: (610) 719-7590 • Email: mike@shearerpm.com



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