The world of commercial real estate offers endless opportunities and possibilities. If you’re ready to invest, you’re likely wondering if you should build from scratch or renovate an existing property. Each has its advantages and many factors come into play. Below, you’ll find a full guide to help you make the best decision.
A Guide to Developing vs. Renovating
Developing takes time and money; however, it’s worthwhile, as you’re developing something new completely from scratch. With existing commercial real estate, you may inherit problems with the HVAC, electrical, and other systems, and older installations may not last long. When you develop, everything is brand new and built to last. You’ll also get to develop something that’s tailored to match the existing market and demand, ensuring the best value to attract tenants. However, you won’t be going to market quickly, and you never know how it may change. Developing also lets you build within limitations on your intention. If you’re interested in drawing a certain type of tenant, you have complete freedom to model the commercial real estate to their needs and may get early commitment during the construction process.
Remodeling a property lets you go to market fast and reduces the amount of planning needed, as architects and designers only need to work within the existing structure rather than building new. As long as you’re not inheriting problems, you won’t have to spend money on extensive system upgrades and will also have a property with a local reputation. It can be easier to land something in an established desirable area and depending on the market, you may land a great deal with plenty of value potential. Uncertainty comes with an existing office building or industrial real estate though, which is why careful consideration is required.
Both options are good ones depending on what your needs are.
If you’re ready to invest in commercial real estate, the team at Crest Commercial Realty in Montgomery County, OH, can assist you. Their qualified brokers can work with you every step of the way. From analysis to closing, you can count on reliable service. Call (937) 222-1600 to speak with a real estate agent and visit their website for a full breakdown of their services. You can also connect on Facebook for regular news and market insight.