There are plenty of reasons for going the redevelopment route as opposed to starting at the ground up, such as increased appreciation, job creation, environmental benefits, and more. However, it does take a very specialized skill set to complete a successful redevelopment.
Here’s some examples of what needs to be taken into consideration first, and whether hiring an experienced developer will prove to be worth it for your project.
Is a redevelopment needed or just a renovation?
As with any major construction project, you will need to determine the scope of the construction you’re looking to accomplish and your budget first. In fact, the main difference between a renovation and redevelopment is the scope of the project.
Depending on your level of expertise, you can determine what scope should work best for not just your project, but also your current financial situation. If you’re unsure, speaking with an experienced developer will help steer you in the right direction.
For instance, if the superstructure, or the existing framework, is not in good enough shape, you will have to account for updating the wall structure, roof height, building materials, potential environmental testing, and more.
Here are some other potential hidden costs you should take into consideration.
Is the building considered economically or design obsolete?
If the building was built around the 1950s-1970s range and hasn’t been updated since, chances are it has lower ceilings and rooflines, which are not as desirable today.
Some questions to consider are: What was the former use? And, how much will it cost to get it to where you want it to be? Also, depending on your future growth plans, would it make sense to add more space there?
On that note of being economical, you should familiarize yourself with any possible incentives that may be available to you. Here’s an example of the criteria for an adaptive reuse program.
Are you familiar with all the most current regulations?
Don’t underestimate the pre-application process and gaining a proper understanding of the current local design standards and ordinances. Getting through the approval process, without fail or delays, will have a lot to do with your knowledge of that area’s regulations.
Also to be compliant with the Americans with Disabilities Act regulations, you will need to find out before the redevelopment whether the building is up to ADA code. If not, you may become responsible for adding handicap parking, ramps, a larger restroom, etc.
You may not be able to anticipate everything, but getting contractors into the building early so they can weigh out your vision with the municipality’s expectations will help determine what is feasible with an experienced eye.
As mentioned, there are many reasons commercial redevelopment can be desired over ground up development; but there can also be some detrimental challenges for the wrong scenario. Working with an experienced developer can help guard against being blindsided by unaccounted for costs, alleviate issues, and help determine if it will be the most efficient route.
If you are still unsure about which direction you’d like to take, feel free to contact us with any questions you have about redevelopment and see if we may be a beneficial partner.
PETER KRAHENBUHL >
Vice President of Development
Peter Krahenbuhl started at SimonCRE in 2015 as a Project Manager and now serves as Vice President of Development. He plays a vital role in the daily planning and development associated with successfully driving multiple projects from inception to completion.