Which property upgrade is right for you?
Just because you have successfully purchased a new property does not mean that your work is done. Oftentimes, a newly acquired property needs to be upgraded to optimize its value and stay competitive in the real estate market. When it comes to updating your property, you have two main options: renovation and redevelopment. But how do you know which option is right for you? Your experts at California Commercial Realty Advisors weigh in.
- What differentiates renovation from redevelopment?
The main difference between renovation and redevelopment is the scope of the project. Typically, renovations mean making smaller cosmetic updates to areas such as lobbies and bathrooms. If your property has tenants, then they can usually remain in the building as it is being renovated.
In contrast, redevelopment is a much bigger construction project that may require demolition and complete rebuilding of the property. Redevelopment often occurs in up-and-coming areas where buildings need major modernizations or added amenities to be appealing. Typically, tenants need to move out during a redevelopment project.
- Which project is right for you?
If your property needs to be upgraded, you may not be sure if a renovation or a redevelopment project is better. If your building is in good shape and simply needs aesthetic improvements, then renovation should be enough. However, if your property has structural issues or needs a complete design overhaul, then a redevelopment is probably better for your needs. If you are still not sure about your needs, then speak to a trusted commercial real estate broker for the expert advice you need.
Need advice on your commercial real estate development plans? If so, then contact the experts at California Commercial Realty Advisors, Inc. We are ready to assist you with all your commercial real estate needs today.