Houston Commercial Construction | Build-Buy-Lease or Renovate

07:40 May 2022
Houston Commercial Construction

Evaluating your Houston commercial construction needs for your business can be a very complicated matrix of alternatives without the assistance of commercial builders. There is a need for commercial contracting in assessing the construction cost of each of the four options available to owners for their future business commercial building needs.

One of the more complex decisions that a business owner must face with their business property is if they should build a new building, buy an existing property, lease space or renovate their existing space. There are many issues to research and evaluate when measuring the optimum conclusion. In most cases collecting the necessary information and details requires the assistance of a number of professional service providers.

Securing the services of a commercial general contractor and a commercial real estate broker will pay enormous dividends vetting your viable options. A professional commercial general contractor can develop multiple scenarios for the different options you are considering. They are capable of developing the conceptual investments required for construction cost estimates for each of the possible scenarios.

The commercial real estate broker can provide some immediate access to current market values and comparable property values. Having this information allows the owner to create a financial feasibility for comparing the owner’s possible commercial property options with a high degree of accuracy.

Project Feasibility

 The financial feasibility is a project pro-forma for each possible scenario the owner is considering. It is compiled of the relevant financial factors that are used to compose the probable cost elements and comparable market value data. For instance, in the case of constructing a new building, the owner would need to establish the structures total square footage and define the general finishes. The commercial contractor would compute the estimated construction cost to build the new structure. The commercial broker would provide the comparable properties for comparison for highest and best use. The owner would then compare the financial factors against other options.

In the case of buy versus lease, the owner might compare the financial comparisons to determine if they should buy or lease a similar building in a neighboring area. The commercial broker would provide the owner with those commercial property comparable to compare against the estimated construction cost. The owner would then conduct an analysis of all scenarios presented.

Although the decisions may not always be made on the financial aspects of the feasibility assessment, the project feasibility will play a significant role in the determination of the chooses. Factors like the location of the business, need for future expansion and time requirements can have a major impact on the ultimate decision.

Develop and Evaluate Optimum Site Plan

One of the most important preliminary practices of planning a new commercial building construction project is to prepare a site plan. The typical site plan defines the property lines, utility easements and set back requirements. There is more to the site plan than just drawing a building that fits the owner’s specifications.

A site plan includes the parking and traffic needs of the public that may patronize the business. It also includes access for fire lanes for the fire department and other public emergency services. The placement for fire hydrants, traffic safety control and landscaping areas is key to a well planned site plan.

Optimizing the site plan is not just for new construction projects. If the owner is increasing the occupancy or adding an addition, the permitting authorities will require X amount of parking places for a certain number of expected employees or shoppers. In the event you would need loading docks, this would require a sufficient layout for a tractor trailer to turn around.

A site plan for larger commercial projects become the cornerstone for complex civil plan drawings that are typically required by the municipal planning and zoning authorities. These larger commercial projects will be required to plan for rain retention for the property. As the owner increases the number of impervious surfaces, the greater the need for planning and creating retention ponds on the property.

Houston Commercial Construction

Commercial Remodeling

Commercial remodeling is a challenging construction process in many regards. The owners do not want to interrupt their business operation and the existing building envelope restricts the physical construction improvement options. There are many strategically methods to use to overcome the commercial remodeling challenges. These plans are a necessary part of developing the plans and construction cost.

Some of the strategies used for ongoing business are construction staging and staggered work schedules can be used to work around ongoing business operations. These take time to develop and are planned out during the design planning phase. The need for the owner’s input is essential to properly develop the details like work flow, finish schedules and increase capacity amounts.

Preconstruction planning involving site maps and civil improvements is a necessary step in determining the feasibility of expanding an existing building. It provides the construction feasibility of a commercial remodeling plan and the financial feasibility of the project. Both are critical requirements to determine early in the planning process before it becomes more expensive to realize that a commercial remodel option is not an option. To learn more about commercial remodeling read;

New Commercial Construction

Developing new commercial construction plans provides the ability to create financial feasibility solutions for ground up opportunities. From site planning to conceptual floor planning, your commercial general contractor will facilitate the early stages of the project development necessary for governmental approvals, civil planning, utility reservations and potential financial structuring. With conceptual building and civil plans, the commercial contractors can develop the feasibility plans to move forward.

New commercial construction large commitment of both the commercial general contractor and the owner to create the construction documents required for building the construction budget, building permits and other preconstruction requirements. The need for these construction documents is the pathway for successful performance results.

Design build construction provides the owner a construction delivery method that expedites both the design and construction process. They provide the owner with a single point of project authority from start to finish. To learn more about design build construction read; 

Increasing Efficiency Through Good Design

Every owner wants their business to operate efficiently. The floor plan of the office space, warehouse and manufacturing area must be designed with efficiency in mind. This is the result of the design team clearly understanding the interaction of the various business departments collaboration.

In a warehouse the design should key on the flow of receiving, storage and shipping. Products should be received in an area where if the trailer does not require immediate unloading, the trailer can be stored to allow unloading at a scheduled time without interfering with shipping. The same can be said in reverse about shipping. Shipping requires a defined area where the trucks can be loaded and timely be dispatched for delivery.

In an office space the owner will attempt to place key department personnel in close proximity to each other that collaborate daily with each other. Locating mutually used common equipment in immediate areas can add efficiency to everyone’s day. The storage of supplies that are regularly used is another factor that plays a role in the design layout.

When planning a manufacturing space, the process dictates the most efficient design layout for the operation. Introducing the raw product of the process into the system should be near the beginning of the process design layout. The completed product should be placed near the shipping area. These types of design benchmarks place a high priority on operation efficiency. To further your understanding of the architectural design process visit here

Planning for Future Growth

Commercial property is a major capital investment. Most business’s do not like to move their operation from its location for a number of valid reasons. The actual moving of the business location is very inconvenient and disruptive to the day-to-day business operation. In addition, it is very expensive to physically move the assets. For these reasons and more most businesses would rather avoid moving giving other available options.

The moving of a business is generally disruptive to day-to-day operations. It takes planning and a great deal of scheduling to pull off. This is one of the principal reasons that most businesses would rather remodel or add an addition if they have sufficient extra space.

The complexity of this general issue is why owners prefer to lease the business property. If they can lease a good location that allows them to expand over time, this situation becomes increasingly attractive in comparison to the thought of moving the business in 5 years.

The build, buy, lease or renovate decision is a complicated process. It requires special talented advisers and a clear vision by the owner of both current needs and future property needs of the business.


 Houston commercial construction decisions are complex and challenging to make without the assistance of a commercial general contractor. Commercial builders offer full construction services including design services, commercial building and commercial contracting.

Exploring commercial construction in Houston will provide you the optimum construction building options for deliberately deciding on which scheme is best for your business. For more information on commercial construction please visit here

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