Being a landlord of a commercial property exhibits a favorable prospect of earning revenue and profits, but the cost involved in starting this business is immensely high, so serious considerations and meticulous budgeting must be done. But even with utmost preparation, a construction project will never be 100% smooth sailing as unexpected problems will always spring up. Therefore, your initial planning stages must include courses of actions for when mishaps occur.
Some business owners just opt for buying an existing property to reduce the risks and costs associated with a construction project. However, constructing your own commercial building also bears considerable advantages, such as being secured and ascertained of its quality. Not to mention a brand new building receives more attention and is more attractive.
That said, here are the key points to take note of before starting a commercial building construction project:
Weigh Your Options
Assess your situation first before making the investment. Construction projects are highly demanding, hence, some business owners just purchase an existing commercial property to save time and costs.
To be sure that you’re making the right decision from a financial perspective, consult a financial advisor. List down all your goals for your company, and obtain expert advises from engineers, interior designers, and architects next. They can determine if your building can accommodate your business’s growth, and give you solutions for the possible problems your commercial property may encounter.
If you’ve decided to start a construction project in Ogden, Utah, for example, hire a competent and experienced general contractor. Include a good architect or interior designer for your project to ensure that your building will also look aesthetically pleasing.
Obtain Building Permits
Before starting with the project, make sure to obtain all necessary permits and that your project meets all your municipality’s guidelines.
Determine How Much You’d Be Involved
Not all business owners are experts in construction projects, so a project manager is typically hired to oversee its progress and processes. Project managers are especially important when business owners are unable to devote enough time to monitor the project.
But even with a project manager present, business owners should still show up on the site to be personally updated with the project’s progress.
Know the Project Team
Make sure to get to know every person involved in the project, and that their tasks are divided correctly. Municipalities will also be involved to inspect the site, so make sure that they’re doing it justly.
Prepare a Contingency Plan and Learn How to Handle Conflicts
As stated, no construction project is 100% smooth-sailing, so have a contingency plan ready, meaning an extra budget for unforeseen costs. When conflicts arise, approach them systematically to know who should be liable.
Monetize Your Property
Once the building is done, it’s time to plan how to maximize your income from it. Aside from offering the office and commercial spaces for rent, you can also monetize your roof space by offering it for solar panel installations. Cellphone providers can also be tapped because they may see an opportunity to build a cell-site on your property.
You can also reach out to billboard companies because they might be interested in putting up ad space in your premises. There are many ways to get the most of your commercial property, so explore all these possible opportunities.
The most important things to remember about a commercial building construction project are the hefty costs, heavy decision-making processes, and the tremendous time and work it takes. Simply put, it’s going to be difficult and demanding. Therefore, as a business owner, you should meticulously plan this venture with the right experts to help you.