Picking a commercial space that is perfect for your team can be a daunting task. When touring different spaces, it may seem like nothing is right for you and you should build your own office from the ground up. The team at Magellan Construction is here to walk you through the pros and cons of building a new commercial space or building out of a pre-existing office.
One of the first things to consider is what your business needs from your space. For example, a medical center is going to need different amenities than a restaurant. You need a space that is going to improve your business so you need a space that will increase employee productivity and morale.
First, let’s consider a build-out. A build-out is when you attain a space and need to renovate it to fit your business needs. Build-outs can vary, so it is important to consider the condition of the existing property. If it has been awhile since the last remodel, the building may be behind on current codes, which may mean a “gut-job” is necessary; however, a build-out can definitely be the cheaper option if the space has been consistently renovated. On the other hand, if you think your long-term needs could change, a build-out may not be for you. There are only so many people that you can fit in a space and still be productive. If your company is quickly growing, you may want to consider a different option.
A big factor on what you choose is probably going to be the cost. There are a few common ways that business owners will pay for build-outs. Some work out a deal with their landlord to split the cost and buy it after or lease it for an agreed-upon time period, and others will buy the build-out property out front. Be mindful that you do not get caught up in the hard costs of your project that you forget to take the soft costs into account. Soft costs are going to be costs that do not involve physical changes to the space. Think legal fees, inspection costs, and building permits. Whereas hard costs are going to be the tangible changes like paint, carpet, and plumbing. New construction will require more money, but may last you longer in the bigger picture. With new construction, there is no landlord to raise your rent and there are a number of tax deductions to take advantage of like mortgage interest and property taxes.
Business owners also need to take into account how long your project will take. Build outs are usually smaller projects that require less time, money, planning, and designing. Whereas with new construction, you will need to plan out every detail from the ground up. For a building 10,000 square feet to 49,999 square feet, you can estimate about four to six months of work. For a building 50,000 square feet or more, you can estimate about six to eight months of work.
With a new construction project, you will have your desired location for as long as you want. Your space will be 100% tailored to what you need and want for your business.
For a consultation on what is going to work best for your company, contact Magellan Construction.