2 critical factors in commercial renovations

On Behalf of | Apr 28, 2023 | Commercial Real Estate Leases | 0 comments

If you own a commercial property in Florida, you want to make the most of your investment. At some point, you might decide that renovating your building makes solid economic sense.

While many factors determine the success of your property upgrade, two factors play especially important roles.

1. Setting a realistic budget

Tips from Florida Independent place a high priority on establishing a detailed budget for your plans. This will involve frank discussions with your primary contractor to get a solid sense of the costs. This is especially important in an era of high inflation when building materials seem to go up in price nearly every day.

If the costs exceed your budget or do not work well with your cash flow, you can look at your options. This might include holding off on the project, or it could involve doing the most desired renovations first and then proceeding with other projects in a few months. A 10% contingency in your budget will cover unexpected costs.

2. Hiring quality contractors

Your team must make sure to hire competent contractors for all aspects of the job. An inexpensive contractor could cost you more in the long run, in terms of delayed schedules and unacceptable work.

You could even face lawsuits as a result of poor workmanship that results in injuries on your property. Vetting your contractors begins with interviewing candidates, looking at their qualifications and talking with previous clients.

A properly managed commercial property renovation will increase the value of your building. Make sure to protect your company from the unexpected.