The economic landscape is pretty bare in the UK. Developers are increasingly turning to refurbishment to squeeze extra value out of their stock, rather than the pricier option – redevelopment. Funding is sparse for such cash-heavy projects and tenants are focused on getting through the short term fiscal problems everyone is currently facing.
So what are the benefits of office refurbishing, rather than redeveloping? And are they worth the expenditure?
A Better Balance
When the chips are low, it’s not always wise to go for high-risk ventures. Refurbishing addresses the balance of risk and return. Depending on the amount of work required, refurbishment will get you back to market between 15% and 70% quicker than a new build and new builds obviously cost a lot more.
Although you’re unlikely to lose out if you refurbish, you could have an exceptionally steep fall from grace with expensive redevelopment projects.
Know What You’ve Got Going For You
What’s the point in undertaking a new project when your current assets are under-optimised? Maximising the value of your buildings can provide fantastic returns for investment. It’s well worth considering refurbishment before you even think about expanding through redevelopment. Growing too fast can make a business crumble, so it’s better to be safe than sorry. Stay mean and lean!
Easier On The Wallet
Refurbishment is just all around more cost-effective. It can provide a reasonable amount of expansion, revenue, and cost savings of between 10% and 75%. It’s a great opportunity to re-evaluate your current business model and re-energise your building. And more people are likely to get behind it, as it doesn’t appear to be such a dangerously costly investment.
More Eco Friendly
Refurbishment is far better for the environment than building a new property from scratch! Besides, refurbishing your building gives you an opportunity to green wash your building and make it more energy efficient. Environmentally-friendly credentials are a great selling point for an increasingly socially responsible market. And it just makes financial sense.
You should consider installing lower water bathrooms and lighting controls. A green roof can supply rainwater aids and sustainable drainage. Glazing your windows, if you haven’t already, is an absolute must. Environmental control technologies are really useful when you hit the expensive, energy-sapping winter months.
Increases Value Of Space
Drab, tired spaces can be turned into desirable, attractive, and economical properties with refurbishment. Adding floors, making entrances more welcoming, redecoration/rebranding, and creating more natural light can really show your building off at its best. Widen doorways, create greater floor-to-ceiling space, and revamp the disabled access points.
As time goes by, approaches to work and office environments are changing. Without regular refurbishments, a building risks coming across as outdated, becoming at risk to stagnation, particularly in tough times such as now. This appearance can be a death choke for businesses that need to exude an atmosphere of being ‘cutting edge’ and professional. No-one wants to work in an institution-like office space anymore!