After a strong year for businesses in 2018, many experts are projecting for continued growth in 2019. The fact that the number of jobs in Pennsylvania continues to increase and the unemployment rate is falling are positive economic signs. This year, we are likely to see this growth in business cause a boom in construction.
But it’s not always clear what the best option is for a flourishing company. Is it better to build remodel or expand the current office, or build a new one entirely? We’ve made an overview of the main advantages and considerations of each possibility, so that you and your business partners can find the best solution.
Remodeling the Current Building
There are some clearly strong reasons to renovate an existing business space.
Business as Usual
Commercial renovating doesn’t require your company to stop working. It’s possible to keep your business open during the remodeling process and this can be advantageous to office activities. The company doesn’t have to relocate, and remodeling is usually completed in less time than new construction. Plus, you can choose to renovate during the winter, or another a time of year in which your specific activity slows down.
More Space for Current Needs
Old or outdated commercial spaces may be large enough to support your company, but require just some minor modifications in order to be used more efficiently. You may find that the existing building actually has all the space that you currently need. Studying a way to optimize space and a better layout for particular business activities can have a big impact. Benefits include increased productivity for the staff, better communication among employees, and customized workspaces that can flexibly meet a number of requirements.
In most cases, remodeling is the least expensive option to accommodate company growth. Refreshing the current office doesn’t require renting or purchasing more space, moving, or building an entirely new structure. Yet, the investment pays off by motivating employees, attracting new clients, and supporting growth and marketing efforts.
Developing a smart remodeling strategy will help focus the budget on making improvements exactly where they count. In the long-term, renovations should also aim to reduce the costs associated with running a commercial space. Building materials and appliances can be skillfully selected to ensure significant energy savings for your growing business.
Expanding the Current Building
When the existing structure just doesn’t provide enough space for your growing business. It might be time to expand. Expanding is beneficial because it doesn’t include the hassle relocating or dealing with renovation work going on while employees are trying to work in the office.
Moderate Cost Solution
While expanding may prove to be more expensive than remodeling, it will probably be less costly than new building construction. The added cost of buying more square footage, renting out an adjacent space or adding on to the building may be necessary to facilitate the growth of your activity. Costs will include those related to remodeling the newly added or acquired space to fit your company’s needs.
Space for Continual Growth
While renovating may make better use of your current office space, expanding provides room for growth. Expansion is also scalable; your company can acquire and add on commercial space as needed in the future. The advantages of this option include the ability to hire more employees and boosting staff productivity.
A Fresh Look
Expanding a business helps infuse the staff with new energy, drive, and motivation. Ambition can blossom when they are comfortable and have ample room to carry out the company’s most lucrative activities. Likewise, investing in the workspace is a way to show employees that their hard work is appreciated. Giving the work environment a fresh face also demonstrates the business’ professional success to current and prospective clients.
Constructing a New Building
Spatial limitations of the property, the need to relocate, or necessity for a newer structure are solid factors for choosing to build a new office facility.
Space to Suit the Company’s Future
Your company may have just reached the point of no return – where the capacity of the existing office can’t accommodate its needs anymore. A new build is the ultimate sign of growth and success. Plus, it also shows your ambition and confidence in an even brighter future for the business. The new building design should not be limited to current activities, but should provide ample space for ongoing growth. Here, there is also the added benefit that moving is not necessary until the new building is ready.
An Investment, Rather Than an Expense
A new build is likely the most expensive option of the three. Considerations include the cost of purchasing property, plus higher utilities and insurance for the building and, perhaps, higher expected salaries for workers living in that area. Although, if the new building will be constructed in a less expensive area, the cost of a new facility could be offset by lower overhead expense over time. This is especially true if the current space is rented or leased.
In this case, it’s important to think of building as an investment, rather than an expense. The commercial property will build equity over time, which can be leveraged for future expansion. Currently, a smart business owner can find some great deals on commercial property in the Pennsylvania area. Take advantage of local growth grants and incentives to realize a new home for your business.
Getting Closer to Your Clients
Building a new facility may also be a chance for a strategic relocation. Some company’s use this opportunity to get closer to key clients or partners. The new place could be built in a less expensive or more convenient location, or offer better parking for customers. Choosing a new location could also make it possible to shorten the commute for employees.
The Options Are Endless
You are the boss! With a greenfield construction project, you are the boss of the new office design. All the details related to function, layout, look and building materials are up to you.
Use the Ultimate Checklist for Starting a Building Remodel Project by ACA Remodeling.