Benefits of Commercial Remodeling

11:47 May 2022
Commercial remodeling

Although commercial remodeling has many benefits to the business, there are many common misconceptions that leads business owners to dismiss the idea of a commercial remodel of their property. It is generally accepted that commercial renovation is a major head ache with the continual work interruptions and the high cost of remodeling. There indeed can be temporary interruptions to work flow but a well thought through commercial remodel plan can minimize the impact on work productivity through staged phases of construction improvements. The cost of remodeling is always an important factor in acceptance of the owner’s consideration. We will discuss 9 benefits that need to be considered when evaluating your commercial remodeling needs.

  • Provides a Fresh Business Profile to Clients
  • Creates Pride in Office Employees
  • Organization and Function of the Office Space
  • Higher Employee Productive Efficiency
  • Increased Property Values
  • Increase Energy Efficiency
  • Attract New Employees
  • More Cost Effective Then New Construction
  • Faster Results Than New Construction
  • Tax Deductible

Provides a Fresh Business Profile to Clients

Nothing impacts visiting clients more than a well-designed and freshly remodeled business space. A new commercial renovation sends your clients a message that you care about the details of your business and your employees. Your customers will think of your firm as being more professional because of your new business surroundings, they will be more comfortable to engage with your business, which translates into the perception of caring more about their needs.

A commercial renovation excites your visiting clients. They feel something special during their visit more than they would in an outdated business facility. An inviting office will help relax your clients and put them at ease when doing business. If they feel relaxed with your companies’ surroundings, your group will stand a better opportunity in converting sales opportunities.

Commercial remodeling

Creates Pride in Office Employees

Your employees will genuinely appreciate a new office. They will feel a sense of pride in being associated with a company that have professionally remodeled offices. A new break room can start a new sense of team work and comradery amongst employees. A well-appointed new board room can increase the energy of executives and lead to many new ideas. This sense of pride will often energize your team to increase productivity and add to increasing employee recruiting. Please view our commercial remodeling benefits infographic; 

Organization and Function of the Office Space

One of the greatest benefits of a commercial renovation is that the design team can vastly improve the organization and function of the office space. They can position departments and office equipment in more strategic locations and make the much-needed space adjustments to assist in increasing efficiency. The localizing specific departments in proximity can result in greater results from direct teamwork. It is commonly understood that the location of collaborating departments can have a major impact on the company’s overall success.

Planning and designing any commercial remodeling project need to be modeled to the way employees work and collaborate. If your firm operates with sensitive information and a large number of one-on-one meetings, a traditional private office structure would be ideal. If your employees operate by jointly sharing immediate information and data, an open cubicle setting would be appropriate.

Thinking through how your employees are currently using the entire office space is a good starting point in evaluating future remodeling design plans. Evaluating the entire space including restrooms, storage rooms and receptions areas are critical to include in a global approach toward a comprehensive new space plan. For a comprehensive article on the commercial remodeling construction please click here

Higher Employee Productive Efficiency

The cost of the commercial remodeling will often be offset in greater employee productivity and employee retainage. This is brought on through the increased efficiency of a good work flow and the excitement of working in a newly remodeled office space. The increases in work flow brought on by the concentrated locations allows the rapid exchange of resources. While the new surrounding energizes your teams to perform at a higher-than-normal level.

It is well known but difficult to measure the positive benefits of the work environment has on employees. Employees take a sense of pride working in a space that is attractive and well laid out. They also want to be part of an efficiently operating team. So, when the work flow increases, the employee reduces frustration and strives for productive results.

Increased Property Values

A very obvious advantage to a commercial remodel is that you will be increasing the value of the property. This remains true for both tenant lease facilities and owner facilities. In most cases the more substantial commercial remodeling improvements you can make the greater they will reflect in future resale value. That goes for interior improvements as well as replacement component products such as roofs and HVAC equipment.

The value of a commercial property will need increase in value proportionate to the remodeling expenditures within the first couple of years, but will often pay for themselves over a 5 year period. Commercial property is often valued by its income producing potential. By undergoing a commercial renovation, the owner will be justified in increasing rents and ultimately income cash flow as investment property.

In cases where an owner is considering moving because they have out grown their facility, expanding through a building addition can be a very attractive alternative. If your property has the available space, you should explore this option with your commercial general contractor.

Increase Energy Efficiency

As with a well-developed commercial renovation the owner will also experience cost savings produced by the use of higher energy efficient products. These types of products include cool roofs, LED & T1 fluorescent fixtures and spray foam insulations.

Commercial construction does not have a reputation for using green sustainable products in the past. When the owner has an opportunity to replace products that can impact energy cost savings, these improvements can often pay for themselves and should be given special deliberation.

There have been substantial advances in commercial building envelope energy sustainability. Product advances such as exterior glazing systems, cool roofs and foam spray insulation processes have helped minimize energy consumption caused by air infiltration.

Attract New Employees

It is worth mentioning that a well-designed commercial renovation can inspire and attract new employees when recruiting. New fresh interior surroundings are important to how an employee feels about a company. Interior finishes continue to be a high priority to the younger generations of the work force.

A commercial remodeling project can help establish the company culture through both the dedicated space for work stations but also the common gathering areas. This is visually apparent to new visiting prospective employees as they tour the company facilities. The newly updated improvements can also improve the work flow of teams, thus reducing unwanted frustrations that happen with team culture development and old-world building work flow planning.

More Cost Effective Then New Construction

With older buildings there comes a point where the owner needs more space and the building requires substantial improvements. These situations warrant the evaluation of a new office building construction. The new construction cost should then be compared to a commercial remodel project to determine the best overall outcome for the owner’s interest.

Some of the benefits of a commercial remodeling project is that they are usually more cost effective then new construction. In addition, a commercial renovation is much less time to execute then new construction. When comparing new commercial construction to commercial remodeling the design team should also consider the future growth plans. Can the existing property accommodate the required business expansion plans?

Faster Results Than New Construction

When a business owner decides to build ground up, they learn very quickly that it will likely take years to complete design and construction of a new building. The business needs to first locate the appropriate raw land, hire a commercial general contractor, select a design team and hire a civil engineer to prepare the parking, drainage and utilities required.

Commercial contracting for new building commercial construction requires a sizable investment of time on the business owner’s part. Especially during the pre-design and pre-construction phases of planning. This investment of the owner’s time can be lessoned by hiring the right commercial builder that is well organized, like minded in their business acumen and well versed in the construction needs of their client. To learn more about hiring such a remodeling contractor, click here.

Tax Deductible

Tax deductions may not be a foremost importance to the owner when finalizing commercial remodel plans, but is an important consideration on the return-on-investment equation. In most cases interior improvements can be rapidly depreciated to give net income a sizeable boast. Through cost recovery accounting depreciation can be amortized or accelerated to meet the tax strategies of the firm’s income goals.

One of the best times to conduct the accelerated depreciation on the building remodeling components is when they have been recently completed. That is due to having the required documents to support the depreciation schedule. Items like construction plans and material receipts back up the accountant’s work. There are many justifiable reasons for owners to consider a commercial renovation project. Incorporating all these benefits into the decision-making equation will assist the owner a collective and well-informed conclusion.


Understanding how commercial remodeling can be monetized into business efficiencies and higher levels of productivity can make the difference in your decision making concerning a commercial renovation. Having the services of a commercial contractor can assist you in the staging of construction improvements around your business operations. The commercial builder can also provide you guidance in optimizing the work flow layout and value engineering of design. If you are wanting to maximize the benefits of a commercial remodel partnering early in the process with a commercial general contractor is the smart move. Visit here for additional commercial builders resources. 

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