Should Your Commercial Construction Renovate or Rebuild?

Rebuilding and renovating each has its pros and cons for construction projects. This guide will help you make the right choice the first time.

Key Takeaways:

• Renovating a site can be more cost-effective if you already own the building or are purchasing an existing property
• Building new allows greater freedom to create a site that meets the latest rules and regulations from day one
• Renovating might make your project move faster

The thought of a renovated or rebuilt structure is an exciting one for General Contractors and customers alike. No matter which route you’re taking, it’s a time for improving what you have or realizing your architectural vision. That’s the fun part. 

The work begins in earnest when you choose between renovating or rebuilding. There are advantages and potential disadvantages to building something from the ground up or giving an existing structure a new lease of life.

Your budget will be a prime factor in deciding which course your construction takes. Any time constraints on your completion schedule are another key factor. Let’s break down how each option can play out in practical and financial terms, as well as on the all-important project clock.

The difference between renovating and rebuilding

Some people get tripped up when distinguishing between renovation and remodeling, so let’s clarify that first. Renovating means restoring a structure to a like-new condition. It’s simply a repaired version of the previous, deteriorated design, possibly with a twist of personal expression from the renovators. A remodel means creating something new by significantly altering the existing structure.

Rebuilding, on the other hand, is when the structure must come down and be rebuilt from the ground up! This is the only option when renovations and repairs are no longer enough to save things. The greater scope of work typically makes rebuilding the more expensive and time-consuming option, with some projects taking more than a year to complete.

The other side of both scenarios

Some renovation timescales may run considerably shorter (or longer) than others, depending on the size of the project. Renovations are often more cost-effective by nature than rebuilding; however, it must be remembered that renovating is a broad concept.

Renovations can range from installing new fixtures and fittings to more advanced changes that, while important, shouldn’t significantly alter the structure. These might include upgrading plumbing or electrical systems to comply with current standards or making some changes to accommodate ADA requirements.

The less you need to do, the less renovations will cost and the faster they’ll be completed. There will also be less disruption for any onsite staff trying to work around renovation teams. Business owners may opt to limit renovations to non-business hours, which adds time to the project.

Thus, more extensive renovations can sometimes prove more time-consuming and expensive than knocking down and rebuilding. The latter is still by far the more expressive choice because it gives site owners a blank canvas to create the building they envision.

The right choice really is unique to each project and depends on what the people involved want most. Here are some other important things to consider.

How regional requirements can impact rebuilds and renovations

Here’s a thought: Can you even renovate your building freely, if at all? Some structures are historically protected and will require special permissions to work on. These may be necessary from multiple bodies and may limit the renovative scope. It goes without saying in such cases that if you can’t renovate it, you certainly can’t knock it down and rebuild! If you’re allowed to renovate, you’ll need a General Contractor experienced with historical buildings.

Zoning laws cast a hefty shadow on rebuilds. The kind of commercial site you want to build may not even be permissible in the allotted space. A good General Contractor will make the local planning commission and/or zoning office a key part of a new build to avoid any unnecessary complications.

The green factor and the rising cost of building materials

There are numerous mandatory and voluntary green standards General Contractors should ensure their customers are familiar with. These sometimes require older buildings to be retrofitted during renovations. Building from scratch allows you to incorporate modern approaches to energy efficiency more easily.

This begs the obvious question: Are renovations the greener option, or are rebuilds? Again, it’s about a 50/50 split because renovations don’t produce the kind of carbon emissions that constructing a new building does. Would you prefer to make some expensive renovations to help the environment, or build new for cheaper and make a heavier carbon footprint in the short term?

Construction Dive highlighted how soaring material costs, labor shortages, and more price-hiking factors are afoot in 2023, and the forecast isn’t too rosy for the next couple of years, either. Choosing to build new may prove too expensive, forcing the less material-intensive renovation route – which is also generally less prone to budget overruns.

Future financial considerations – ROI and resale

Renovating a commercial site can dramatically improve customer attraction and sales and generate a sufficient return on investment. This is something to consider if the projected cost of those renovations is daunting. Additionally, most site owners plan on selling their premises someday, and a well-renovated older building can be just as attractive a sales prospect as a new one.

On the other hand, for some people there’s the stigma of the age of the construction. Some potential buyers may prefer to purchase a newer construction that might be more in line with the look of an area, and easier, practically and financially, to continually upgrade toward regulatory compliance.

The value of an experienced General Contractor

Imagine committing to a rebuild only to run out of funds before completion due to a mismanaged budget. How about being given a renovation timescale that starts running way over schedule because nobody factored in permits and other potential progress barriers?

Those kinds of nightmares can be avoided when you work with a General Contractor who knows their field and shares your passion for the project. RPC General Contractors can help you choose between renovation and rebuilding and guide you through conceptualization, project planning, and execution, 

We can bring 35 years of comprehensive construction industry experience to your next project to help you plan smarter and budget better. Just contact us to receive a free estimate and get started on your next construction project with us!