When deciding on how to expand or upgrade your businesses physical footprint, you have several options to consider.

Should you construct a brand-new building to meet your business's needs? Or should you renovate part or all of your existing site to optimize space and accommodate future growth? If you have unused space on your property, expanding your building footprint to add new functional areas might be the smartest choice. Each of these options comes with nuanced considerations that you need to think about. Start developing your company’s master plan by considering two important perspectives:

1. A clear vision of where your business is headed. (This is on you and your leadership team.)
2. A smart and thorough analysis of your current facility situation. (This is where Veneklasen Construction and our partners can help.)

Next, consider four questions and the implications these questions will have on whether you build new, renovate, or expand. Your answers will guide you to an informed decision that will allow you to proceed confidently with the project:

Which option is right for my budget?

Building New

• Consider long-term facility costs: The modern materials and technology used in new construction can reduce future maintenance and energy expenses. As an example, wall systems from Varco Pruden are an affordable option offered by Veneklasen Construction. This high R-value option lowers long-term maintenance costs by delivering energy efficiency and easy installation.
• Be aware of construction costs of a new building: Constructing a new building typically requires a large investment. Financing for new construction requires approval processes and higher interest rates because lenders generally view new construction as higher risk. Veneklasen Construction can advise you regarding securing financing and taking advantage of federal, state, and municipal financial incentives.
• Determining the availability of suitable land: Finding a site that meets zoning requirements and adapting it to the infrastructure needs of your project can be challenging. If you’re looking to build in West Michigan, the scarcity of commercial land impacts the cost of building on a newly acquired site.

Renovating or Expanding:

• Lower initial cost: Renovation or expansion generally requires a lower upfront investment compared to new construction. Loans to fund the improvement of an existing site are straightforward and allow flexible use of funds.
• Plan for impact on company operations: Renovating or expanding an existing facility can impact day-to-day operations. Disruptions can range from a need to temporarily re-route traffic or move parking areas to short-term manufacturing pauses. If this is the route you take, you’ll need to make a careful plan to make sure your operation continues to run smoothly!
• Hidden costs can arise: While Veneklasen and our engineering partners conduct thorough analyses of an existing site to accurately budget and plan a renovation or expansion, unexpected issues such as structural problem or outdated wiring can arise, leading to additional expenses.

How can I best accommodate my ideal timeline?

Building New

• More predictable schedule: Once pre-construction activities like design and site selection are complete, new construction often aligns to a more predictable timeline. When you have a critical target like a planned grand opening or timed equipment delivery, Veneklasen coordinates our resources to be sure your building is ready for move-in according to your timeline.
• Factor in time for site selection: In many regions, especially West Michigan, the search for commercial property can be a lengthy process – adding months to a construction timeline. It’s not uncommon for a firm to search for a year or more to find a suitable new building site.
• Timeline complexity: Designing, permitting, and constructing a new building is a complex process that requires coordination with municipal and other entities. Veneklasen’s VENEBUILT™ pre-construction process and our team’s vast experience managing permitting and building code compliance helps to compress the timeline of new construction as much as possible.

Renovating or Expanding:

• Shorter timeline: While there is a design/engineering phase when renovating or expanding, zoning regulations are usually simpler. Financing and permitting activities will take less time. These projects can also be completed in phases allowing you to move into priority areas of your new space sooner.

How important is the new space to my business growth strategy?

Building New:

• Customization is maximized: A new building allows you to tailor the design to your specific needs, ensuring optimal functionality and efficiency.
• Thinking about future expansion: If your business is growing, your new facility can be designed to best accommodate future expansion. We sometimes advise clients who anticipate future upward growth to build more space than they immediately need, which can be temporarily leased to commercial tenants. This solution provides new revenue streams until the business can utilize the space for expanded operations.
• Competitive advantage: Sometimes, a brand-new building outfitted with innovative technology is the best way to deliver on your value proposition, differentiate your company and brand, and secure a strong future market position.

Renovating or Expanding:

• Preserving your location advantage: If your current location is advantageous (e.g., high foot traffic, accessibility, proximity to supply chain), staying put can be beneficial.
• Consider if this is just a Band-Aid: It can be easier, cheaper, and quicker to renovate or expand, but if your business is growing, the simpler option could cost you in the long run. We recommend doing a 5+ year future needs analysis to guide your construction decisions. These projections will assure that you don’t grow out of your space or miss new opportunities by renovating when you should have gone with new construction.

What will be the long-term impact of my commercial space decision to build, renovate, or expand?

Building New:

• Modern facilities provide efficiencies: A brand new building can incorporate the latest technologies, facilitate optimized operational practices, and reduce energy and other facility costs. These factors can maximize your revenue, reduce costs, aid employee recruitment efforts, and appeal to your customers.
• Increased property and business value: A new, modern building can significantly increase the value of your property, business, and brand.
• Higher environmental impact: New commercial construction involves high material demand, high embodied energy to produce the materials, high waste production, and higher energy consumption that renovating or expanding. If sustainability is important to you and your stakeholders, it will be important to keep these factors in mind.

Renovating or Expanding:

• Sustainability: Optimizing an existing site typically involves less environmental waste and energy consumption than building new. If environmental sustainability is important to your company values, creatively enhancing your existing property and upcycling existing materials may be the best strategy.
• Historical value: If your building has historical or architectural significance, renovating can preserve its character and appeal. The history of your company and of the building can be an important part of your brand.

Don’t go it alone. A trustworthy partner is critical for this big decision.

The decision about whether to build new, renovate, or expand isn’t a journey you should take on your own. To begin each project, the Veneklasen Construction team listens to your business goals and aspirations and helps you evaluate your unique property situation. Armed with an understanding of your business vision, thorough assessments of your current building condition, and cost and timeline estimates for each potential option, we help you discern the best strategy by answering the four questions above with confidence and clarity. Our VENEBUILT process then brings a team of experts together to create design options, cost-benefit analyses, financing, and construction plans that move your vision and your business forward. Ready to take steps to build, renovate, or expand? Let’s start talking.

Have a project you're thinking of starting? Send us a message and let's talk!