What is the ROI of a Commercial Renovation?
Commercial renovations can make a big difference to the appearance and functionality of your business. Worried about the expense of these projects. Let us help you understand why commercial renovation is beneficial, what the ROI of a commercial renovation is and how to maximise it with your business renovation.
Why Commercial Renovation?
You would have decided to do a commercial renovation for a variety of reasons. It can be for meeting the needs of your employees and customers or for increasing the flow of traffic. Whatever the reason the benefits listed below are assured from a renovation.
- Your business can stay ahead of your competitors.
Customers have several options when they are ready to shop or dine out. So, a business that is comfortable and welcoming will always have the upper hand on customer flow.
- Influence the branding of your company.
A run-down property will give people doubts about the company’s dedication to quality. A renovation ensures the appearance of your shop is in alignment with your brand standard.
Calculating Commercial Renovation ROI
What is the ROI of a commercial renovation and how do you calculate it? Calculating ROI can help business owners to get a clear idea of whether a commercial renovation is a valuable investment. Determining the ROI of a renovation project is done by three steps.
Setting up goals for the renovation can help to determine when your project is a success. Examples of common goals when business owners start their project include:
Make recruiting easier: Renovations can help bring better employees and can also improve employee retention.
Entice customers: A recently renovated shop or office can help draw more customers. Customers like to do business or shop in attractive establishments.
Enhance efficiency: Your old commercial building can be space inefficient, energy-inefficient or bad for productivity. Improving efficiency equals to improving productivity.
Quantify the Cost
Determining the cost of a remodelling project can be a long process. Business owners take bids from various contractors and later choose the best contractor for the job.
It’s essential to remember that the lowest bid is not always the best bid. The contractors who cut costs may use poor quality materials and use less-skilled workers.
Go through the portfolio, contact references and online testimonials of each contractor to find the most suitable contractor.
Conduct Market Research
Conducting market research is the final step to calculating ROI. This will determine the best operating payback and improved market value. During this process, business owners must find answers to these questions:
How much will this renovation enhance business efficiency?
How many new acquisitions will be the result of this project?
How much will be business growth in the future?
The answers to these will help to determine if the renovation is worth the expected cost.
How to Maximise ROI?
How can you maximise ROI? Here are a few things that will increase the value of the commercial remodelling.
• Install Modern Safety Features
Adding modern safety features is a must for businesses hoping to build a culture of safety among workers. It can help to save businesses money, prevent the risk of accidents, keep employees productive and also improve the business’s reputation.
• Improve Employee Productivity
Commercial remodelling can help to increase employee productivity by enhancing space efficiency, simplifying processes and improving business capacity.
Install better lighting, faster equipment, increase electrical capacity and widen hallways and walkways are some of the common renovations that can help employees do their work more effectively.
• Go Green
Implementing energy-efficient and environment-friendly systems in your building can help not only to save electricity, gas and water usage but also to attract customers who support eco-friendly businesses.
Some common green building features to increase energy efficiency:
HVAC improvements: Install energy-efficient air conditioning to keep the facilities comfortable and save energy. Also, seal and insulate or replace ducts to prevent air leaks.
Low flow plumbing installation: Updating the piping and install low flow plumbing fixtures to save water
Window upgrades: Replacing old windows with new, energy-efficient ones can prevent energy loss.
Cool roof installation: Install a cool roof can help to keep the building cool.
Now that you’ve seen the benefits of commercial renovation and what the ROI is, fast forward that renovation plan.
If you are planning for commercial remodelling, choose a contractor who offers customised planning for your business. Project managers of Juiice Solutions can come up with the ideal designs for your business that will benefit you in the future.
Chris is the Business Manager of The Computing Australia Group, he is responsible for the management of the entire Computing Australia Group team. He enjoys the fact that it is a busy portfolio, and no two days are ever the same. His day is a mix of working with the various members of our team and interacting with clients. Having worked with The Computing Australia Group for over 16 years, Chris understands all our services thoroughly and makes sure each project is undertaken with professionalism and empathy, to deliver quality work.