Remodeling a commercial property can be a smart move for your business. Nobody is excited to work for or with a company that has an outdated interior. The way people perceive your company matters, so you should try and do your best to present it in the best possible way. But often appearance takes a back seat to “day-to-day” operations. Remodeling can be costly, so you need to weigh the benefits against the costs. So, let us take a look at the costs you will have to pay for commercial property remodeling, shall we?
What are the factors to determine the costs of remodeling a commercial property?
The average costs of renovation or remodeling vary from one property to another. But, there are still some main factors that can help determine the costs:
- the square footage of the space to be remodeled – the cost of remodeling grows proportionately to the growth of the square footage;
- the state your commercial property is at the moment – new construction vs. previously-owned space – obviously, remodeling and adapting is much cheaper when a property is in a good condition to start with;
- cost of hiring professionals – the budget you will spend on the workforce can vary from one location to another, as a matter of fact, those prices are rather volatile even within the same city or a neighborhood;
- the cost of materials – the overall costs of the materials used will depend on the finishes you choose for your remodeled commercial property.
Downtime Should Be Considered
The days your company won’t be operating due to remodeling or reconstruction can be fatal to your business, especially if they turn into weeks or even months. This is the first thing you should think about when planning to remodel. If the projected downtime is longer than a couple of weeks, you could consider relocating your entire company to temporary premises so that your production does not suffer and you do not lose your clients.
Let’s talk about numbers, shall we?
The average price of remodeling a commercial property is $200 per square foot but this is information that you should take with a grain of salt. The price of the works to be done at your site will depend on all the above-mentioned factors, as well as the purpose of your property. For instance, if you are redoing a laboratory, you can expect that the costs will be much greater than they would be for remodeling a storage unit.
Professional Hourly Rates
These will also depend on the experts that you need for your remodeling. Hiring an experienced architect or a structural engineer can cost a lot, but it is crucial to the success of your renovation. These experts are usually paid by the hour. Take into account that you will have to hire a contractor for whatever type of work that needs to be done on your commercial property. The median hourly fee they charge is $30 per hour. Again, this can vary from one location to another, but what is constant is that you need a good contractor to organize the work and get you the best possible deals. Working with one contractor who can hire workers for all necessary disciplines is always good for your budget. It is similar to paying less for insurance due to bundling your policies.
Hiring an Architect
You will probably spend one-fifth of your remodeling budget on the architect. Their engagement usually costs somewhere between $40,000 and $200,000. Hiring an architect at the beginning of your remodeling project is a smart thing to do since they can help you will all sorts of stuff and offer you the best solutions. For instance, they are familiar with the code issues as well as historic building compliances (if your property is located within a historical district). Contractors are not obliged to know those details.
Walls and Floors
Adding some walls to the interior of your commercial property? Add some money to your budget too since a 10-square-feet wall costs about $60. Glass walls are even more expensive, but they also look better and are more practical for some commercial premises and offices.
Vinyl tiles and lower quality carpets can be found at the price of $4 per square foot (installation included). Concrete flooring is the most popular choice at the moment and surprisingly, it is the least expensive one – the price is about $2 per square foot.
Electrical and Lighting
The average cost of lighting projects when remodeling goes from $10,000 to $100,000. If the existing wiring is used, and only the fixtures get changed, the costs will be significantly lower. But, changing the overall appearance of the property often calls for totally different lighting. It might also create new business opportunities!
Some calculations show that you can be charged about $250 per lighting point while emergency exit signs usually cost about $300 each. Still, these are all just rough estimates and the scope of work done at your commercial property is what determines the final price.
Does your business have some specific power needs? If it depends on manufacturing or production, you will probably want to update the electrical installations. Even if that is not the case, you should use this opportunity and check the installations for safety reasons. Your contractor should be able to assess the price of those works once you tell them what your expectations are.
Bathrooms and kitchens
Even if your commercial property does not feature a bathroom or a kitchen, it probably does have a toilet and a kitchenette. Refreshing those shouldn’t cost a lot, but if you want to change the layout, fixtures, or location of those rooms, you will have to hire a plumber and probably a few more experts. The cost of a basic bathroom ranges from $3,000 to $6,000. Depending on the scope of works, square footage of the rooms, materials used, and finishing touches, the price can vary significantly.
Factor in contingency
Whenever renovating or remodeling, you should expect surprises during construction. Not every issue can be foreseen, but if you have a back-up in your budget for such cases, you will be able to handle them and stay within your financial limits. Five to fifteen percent of the total project costs should be enough for unplanned events that can occur when remodeling a commercial property.
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