Construction can be a significant investment for property owners, and like with any major business endeavor, maximizing your return on investment (ROI) is crucial. In this article, we will provide valuable commercial construction tips to maximize ROI and secure the long-term profitability of your property.
How to Maximize Your ROI During a Commercial Construction Project
When embarking on any large-scale commercial construction project, it’s essential to have a clear plan in place. You will want to start by defining your goals, and identifying the specific renovations or improvements needed to ensure the ultimate success of your investment property. Below, we have created a comprehensive list of tips to help you maximize your ROI during a commercial construction project.
Reduce Turnover with Tenant Improvements
Instead of investing in updates with a negligible return, one of the most cost-effective ways to ensure the long-term profitability of your commercial property is by investing in tenant improvements (TIs). Tenant improvements encompass any modifications made to the interior of a rental space to suit the needs of a specific tenant. By providing an attractive and functional environment, you can retain existing tenants, attract new ones, and ensure long-term profitability of the property.
Make Energy Efficient Upgrades
Energy efficiency is a critical consideration for both tenants and commercial property owners. By incorporating energy-efficient upgrades during your commercial construction project, you can reduce your ongoing operational costs of the property. Savings on monthly utilities such as water and power can also be a big factor in attracting new tenants and making your property more desirable. Some energy-efficient upgrades that you can incorporate into your commercial construction project include:
- LED Lighting
- Smart Thermostats
- Energy-Efficient HVAC System
- Replacing Windows
- High-Quality Insulation
- Low Flow Plumbing Fixtures
- Solar Panels
- Electric Car Charging Stations
Improve Safety Features
Safety is of utmost importance in any building and an essential component to address during a commercial construction project. Investing in updated safety features not only adds value to your property but also protects your tenants and minimizes the risk of accidents or injuries on your property. Ensuring your space is in compliance with local safety regulations will also ensure you avoid any costly fines or need for additional construction. Some safety features that you can incorporate into your commercial construction project include:
- Fire Alarm Systems
- Sprinkler Systems
- Emergency Exits
- Back-Up Power Generator
- Outdoor Lighting
Increase Building Security Features
Security can be a significant concern for tenants when looking for a commercial space for their business. By increasing your property’s security features, you can attract businesses that value a secure environment, and also deter vandalism, break ins, or other criminal activity. Adding additional lighting in parking lots and common areas is a great way to help tenets feel more secure. Implementing a comprehensive security system that includes video surveillance, alarms, and access control solutions are also worth considering during a commercial construction project.
Address Cosmetic Concerns
First impressions matter, and the appearance of your property can greatly influence its perceived value. Addressing any cosmetic concerns during the commercial construction process can greatly impact your ROI. Pay attention to the exterior facade, landscaping, signage, and common areas. A well-maintained and aesthetically pleasing property creates a positive impression on potential tenants, increasing their interest in leasing space from you.
Find the Best General Contractor for Commercial Building Renovations
By focusing on tenant improvements, energy efficiency, safety features, building security, and addressing cosmetic concerns, you can enhance the value of your property and attract more tenants. However, hiring an experienced general contractor who specializes in commercial construction is also just as vital to the success of your project. At DRF, our commercial construction team understands that time is money, and we are committed to providing services in a manner that is quick, efficient, and as cost-effective as possible. We have decades of experience providing a variety of solutions including commercial renovations and remodels, build outs, tenant improvements, and more. From the conceptual design phase to project completion, we will guide you through every phase of your commercial construction project.
Contact us online to learn more about any of our commercial construction services or give us a call at 208-572-2854 to speak with a member of our team today.