Replacing vs. Remodeling
If your facility is outdated or in need of cosmetic or structural repairs, you have two options: replace it by relocating or rebuilding, or remodel it. It’s not always an easy decision, so be sure to evaluate your situation and consider all of your options.
If you lease space, you need to understand the terms of the lease including: how much time is left on the lease; what options and or renewals are available; and what the market is doing. It is important to know if you can you recoup the costs if you remodel.
If the end of your lease is in sight and you have a renewal term, look at negotiating with your landlord about remodeling. On the other hand, it may be an ideal time to look at other sites to see what needs are and are not being met in your current location.
Consult with a real estate firm that can help you analyze your options from both a financial and a spatial standpoint.
Maybe you’ve still got several years left on a lease. You should still discuss options with your landlord. It may be possible to negotiate a remodel to create a more efficient space. And you may even get money back from your landlord if you extend or renew your lease at that time.
If you own your facility you have more flexibility but you need to keep in mind the same kind of questions and assessments. Does it make more sense to remodel this location or go to a new one?
First, you need to keep the current market situation in mind. A good real estate firm will help you analyze your strategies to determine options for your existing site as well as what is available. If you’re looking at new sites, a good real estate firm can also evaluate how the site would meet your needs and show you new sites with their advantages and cost implications for consideration.
If you’re looking at a renovation or remodel, they can help you assess your financial options as well as space design and accessibility. Remodeling can be cost effective, but it is also an opportunity to explore a new site that may offer you even more advantages: a new location closer to your clients and employees; an updated, LEED-certified and sustainable facility; or a smaller, more efficient space.