3 Steps To Help You Determine if a Commercial Build Is Right for Your Business
Commercial real estate may seem like a daunting project to tackle, but it can also be a wonderful and beneficial move for the longevity and profitability of your business. Our team at DeLeers Construction has decades of commercial build experience in a wide range of industries including health and dental care, assisted living, student housing, retail, grocery and manufacturing and are here to help you decide if now is the right time to embark on a commercial build.
Decision 1: Determine Need
The first step in any commercial build is defining why a commercial build will be beneficial for the business. The answers can range from the fact that the business is expanding, a need for a specific layout and functionality to increase productivity, an opportunity to continue to expand geographically, privacy, or needing a long-term asset for the viability of the business.
Clearly determining the need will guide the rest of the process. If you dive in and cannot clearly outline the why, it may not be time to start a commercial build at this time. However, if your vision is clear and benefits are tangible, it is time to move to the next decision.
Decision 2: Outline Budget and Forecast Profitability
Once you have outlined the benefits of a commercial building, it is time to look at your budget to determine if the amount of capital and credit you have available will be sufficient to begin a build.
If the business does have adequate liquidity and credit, then the next step is to look into the future to determine if the building helps the business increase profitability. Ensure that it’s a complete forecast and takes into consideration costs such as taxes, payments, utilities, insurance, and maintenance.
Plus, it's important to forecast revenue such as increases in production or sales or possible tenant income and decreased expenses such as rent payments, lower utilities, or moving costs.
You need to have a solid understanding of your current financial position as well as a good estimate of the financial benefit to the business before starting.
Decision 3: Research Locations and Initial Building Plans
Now that need, budget, and profitability are outlined, the fun part begins. Locating your perfect land and building plan will give real shape and meaning to the future of your business. When choosing a location and building plan, it’s a great time to look back at your why, budget, and forecast as a framework to evaluate your decision.
Using the work and thought you’ve already put into the project helps you say no to a location with too-high taxes or complicated building codes and yes when you see that building plan that expertly balances common space and privacy or office space and warehouse facilities.
Get Started Today
At DeLeers, we are here for you from the very start of the process. If you are thinking about a commercial build, our expert team can help you through each decision phase to make the build as successful as possible for a long and profitable future.