The age-old question regarding an old building: should I tear it down and build new or would it be better to remodel? So you’ve got an older construction, or maybe one that has been damaged by something like a flood or fire. Perhaps the building’s construction was low-quality to begin with. Whatever the reason, the problem is the same. You have a building that needs work. How can you figure out what the best way to spend your time and money is? It’s never easy to calculate your ROI (return on investment), regardless of the construction project. Even for a new construction, ROIs are less than easy to figure, as there are almost always unexpected costs that must be factored in eventually. Additionally, nobody can say for sure what the future holds. Perhaps a sudden pandemic will prevent people from gathering in large groups, meaning your new state-of-the-art movie theater won’t be generating revenue for years. Maybe you’ve decided to renovate instead of building new. New regulations might mean you suddenly have to get new licenses/permits to continue construction, or even operate the business after the remodel is complete. Regardless, predicting ROI is always a risk. We’re here to help you remove some of that risk and make the best choice you can.
Decide between rebuilding or remodeling
This is your main choice when it comes to figuring out what kind of return on investment you will be getting. Fortunately, this choice is often an easy one to make.
- How much work needs to be done? If there is serious structural work that the building needs, like columns, roofing, and more, then a rebuild might be the right choice. If an old building just needs some new safety additions or tech upgrades, then a remodel can be cheap and easy.
- What state is the building in? If it’s in good shape and you don’t need major changes, then your choice is easy. If the building is dilapidated, in poor shape, or has shoddy construction to begin with, then a rebuild might be the best option.
- How easy is it to remodel vs rebuild? Some renovations, such as installing electrical systems or tech infrastructure might seem easy enough at first, but actually take a lot of time and money. Ripping up floors and walls in order to put in wiring (which your construction contractors might find isn’t even a possibility after taking the building apart) can be much more costly than rebuilding.
- New construction technologies are always changing costs as well. Some commercial contractors use old construction equipment salvaged from other buildings to remodel while keeping a classic look. 3D-printed buildings and recycled materials are also coming into fashion for new buildings. Keep on top of what the most efficient ways to build/remodel in your area are. You never know when you might be surprised by a good money-saving opportunity.