JUNE 28, 2021 PRINCIPAL IAN WILSON
OWN OR LEASE? BUILD NEW? RENOVATE/RETROFIT? REUSE?
We are experiencing new signs of optimism and forward movement in the construction industry. More companies and financial institutions are undertaking new expansion and development programs, which in turn will increase the forward march of business and a much-needed social rebound.
The timeline to cultural and economic normalcy is still uncertain. Many businesses have been forced to operate on company savings rather than company profits and care must be taken. An important factor businesses are faced with, is, how much financial risk is too much.
There are many cost option considerations that can be explored by forward-thinking businesses.
The first decision is should we own or lease? Once this is established, you need to decide the type of project you are interested in:
There are pros and cons to all of the above, so lets dig a little deeper:
New Build – Developing and building a new facility from the ground up.
Renovate / Retrofit – Upgrade, change, add to an existing facility already in place.
Re-use – To develop an existing space that has been left vacant.
There is no one answer and many options. The web is complex but can be very rewarding to those that take the opportunities.
The items listed offer insight at most into some of the considerations involved in making a decision regarding the development approach. It is empowering and exciting to see the start of a revival in our lives. Long reign those businesses and entrepreneurs willing to step out and take the risks which end up benefiting us all. Investing in the growth of your company will pay off in the long run.
Principal Ian Wilson