For most of us, our new year’s goals center around hobbies we want to take up, ways we want to improve our business, and healthy habits we’d like to implement. An often overlooked area is the health of our commercial properties. Deciding to complete a commercial renovation in 2025 can boost the bottom line, help you reach your business goals, and provide a great foundation for the year ahead.
Continue reading to discover the specific benefits of completing a commercial renovation in 2025, as well as insight into what type of renovation project is right for you.
What is a commercial renovation?
Before we dive into those benefits, let’s clarify what a commercial renovation is. A commercial renovation project is any construction to an existing space that spruces it up for commercial purposes (think restaurants, stores, healthcare organizations, offices, assisted living facilities, and even multi-family units).
There are four different types of renovation projects, and knowing which one is right for your space can help you determine the scope of the project, your budget, and what to look for in a contractor.
Build outs
A build out is the process of transforming an already built space into an improved space for a new purpose. It’s the perfect project type for larger-scale projects. If, for example, you just rented a new office space, but the space used to be a yoga studio, a build out can transform the space so it better suits your needs. These projects tend to be the largest in scope, requiring the most time and budget.
Remodels
The next most budget-intensive and time-intensive project type is a remodel. A remodel gives new life to an old building and can encompass projects like raising the ceiling to make your office more spacious or knocking out a wall so a restaurant has a more open concept layout. The key to a remodel is that it results in structural changes, though the scope is more limited than a full build-out.
Renovations
Renovations are the embodiment of small changes that result in a big ROI. A renovation is a mid-sized project that spruces up a space, but doesn’t change the structure of a building. Projects that fall within the renovation sphere include adding a new coat of paint, improving the flooring and wall coverings, or completing minor finishes. Renovations require a smaller budget and less time than build outs or remodels.
Repairs
The final project type is for those who need to repair or maintain a current space. If your project consists of fixing up run-down floor boards or repairing drywall, it probably falls within the repairs and maintenance category. While these projects are sometimes the smallest in scope and budget, some can be quite expensive or time-intensive, if a lot needs to be repaired.
To reduce your repair budget, be proactive with projects in this category. Scheduling regular paintings for your space, for example, will cost less than letting the painting wear down and starting chipping, resulting in a larger, more intensive repair.
3 Ways Renovations Increase the Bottom Line
Now that we understand the types of renovations projects and the difference between commercial and residential construction, let’s get to the reason you’re here: to learn about how that renovation project will increase your business’ bottom line. Below are three benefits our commercial contracting clients have seen in the past.
More foot traffic
The first, and most obvious, benefit to a commercial renovation project is that renovations bring in more foot traffic. Let’s say, for example, you’re at the mall shopping for an outfit for an upcoming wedding. Two stores sell formal wear, but one is dark and cramped and the other is spacious and bright. Which are you most likely to go into?
Or maybe you’re deciding between two places for lunch and one restaurant has a light flickering, outdated countertops, and peeling paint. The other was recently renovated with modern countertops and tables, a spacious layout, and atmospheric lighting. Most likely, you’ll want to eat in the second restaurant.
A commercial property’s space either attracts or repels shoppers and customers. Kawaii Corner understood that and so, before opening their new storefront in Lynnhaven Mall in Virginia Beach, they worked with a contractor to renovate the storefront. At their grand opening, the line stretched throughout the mall.
Better business outcomes
A renovated commercial space also provides a better experience for employees, shoppers, customers, and renters. This “better experience” shapes up differently depending on the space’s purpose, but almost always leads to better business outcomes.
A renovated office space, for example, may provide a better workplace, increasing employee productivity. In a renovated retail space, customers may feel more comfortable and be inclined to purchase more. A multifamily property that was recently renovated may get glowing reviews from tenants who love living there, meaning you can charge higher rent prices moving forward.
Property value
Another more hidden benefit of a commercial renovation is that it increases the property’s value. Let’s say your restaurant is fastly growing and you need to rent a bigger space instead of your current one, the property value of that current space would be higher if you recently completed a renovation project.
Even if you rent, not own, your commercial space, it’s important to keep in mind that the property value increases with a renovation. Sometimes, landlords will partner with tenants and cover part of the cost because of this value increase.
Ready to get started?
If you’re ready to experience better business outcomes, more foot traffic, and increased property value, it’s time to start looking for a commercial contractor. When considering options in the Virginia Beach, Chesapeake, and Hampton Roads area, Carlton Building Services should be on your list. Our team has a proven track record of completing commercial renovation projects that build the future of local business.
To get started, contact us for a free quote or check out past projects we’ve completed in the area.
