When you invest in commercial real estate (CRE), especially if you invest in an older building, renovations may be necessarily, whether they occur now or sometime soon. Renovations, like the originally CRE purchase, are a big investment and can take a lot of time and dedication; however, when done right, renovations can increase your bottom line by allowing you to increase rents and attract more tenants, since your property value has likely increased.
The renovation process, like many processes, can have issues and bumps along the way. As CRE brokers, we wanted to share some common CRE renovation mistakes you should try to look out for and avoid.
Rushing – The saying goes, “Good things take time” – and it couldn’t be more correct. With CRE renovations, you don’t want to rush the process. You want to go through the ideas, designs, quotes, budgets, work, etc. properly or else major problems or setbacks could arise.
Following Fleeting Trends – There are trends that come that you want to abide by like “going green” and sustainability with new building renovations, but there are other trends that are just too “trendy” and go as fast as they come. You want to avoid the super trendy ideas when renovating your CRE property, so your renovations are timeless and attractive for years to come.
Using Impractical Features – You want to be practical when designing your renovations by keeping your tenants and their clients in mind. You want to add features that will benefit them and you, instead of adding features that just sound interesting, different, or fun.
Ignoring Building Codes – Building codes can change from year to year, and it’s important to comply with building codes if you don’t want to pay fines or have your renovations delayed. Make sure to hire experienced, licensed contractors who know the city’s codes.
Not Adding Wiggle Room in the Budget – It is very rare for any project to be spot on with its projected budge, so it is in your best interest to account for the unexpected in your budgeting for the renovations. Add a buffer to your budget, so you won’t be short on money or full of stress if an unanticipated issue occurs.
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The above mistakes are just a few to avoid in CRE renovations. To avoid these renovations mistakes, it’s important you plan and work with seasoned and local professionals. Our team at HOWE Real Estate can help you connect with the right people to renovate your recent CRE investment.
As CRE brokers and commercial real estate experts, our team at HOWE Real Estate is happy to help you find a CRE property, whether you want a space in need of renovations or not. We want to help you reach your financial goals with any CRE investment. We have extensive experience in the CRE market.
At HOWE, our ability to get creative with new solutions to old problems has made us a leader in commercial real estate. Our commercial real estate brokerage, real estate development and consulting services across all market segments. This includes retail, industrial, office, investments, land, mixed use, development and multifamily.
Let our team of professionals at HOWE Real Estate help you get started on looking for a commercial property for sale. We work with buyers, sellers, lessors and lessees across all property types. To contact us, send us an email or call 502-890-4475.
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