Commercial Real Estate (CRE) renovations can be a major undertaking for investors. When done well, it can lead to returns in the form of higher rents, better tenants, and increased property value. However, the process is also prone to mistakes, which can be very costly in the short- and long-term. Below are some common mistakes to avoid in CRE renovations in Boston.
Rushing the Process
One of the most common mistakes in CRE Renovations is rushing the process. With large capital improvements, due diligence is essential. It includes evaluating all design options, comparing and making selections, reviewing contractors and quotes, budgeting, etc. Rushing through or skipping a step will undoubtedly lead to negative outcomes.
Going Too Trendy
With social media and news stories, there’s always a focus on “what’s trending”. It seems to be something different with each news cycle. With renovations being much longer-term than trends often are, proceed with caution when it comes to applying trends to your building renovations.
Adding Impractical Features
Some building features may sound exciting, but are not necessarily practical. Thus, this is another of the common mistakes to avoid in CRE renovations in Boston. As you prepare designs, always keep practicality in mind. Think about your tenants and the customers visiting them, since they are ultimately your target audience. Adding features that benefit them will ultimately benefit you as a landlord.
Not Complying with Building Codes
Massachusetts and Boston building codes are subject to change every year. Failure to comply with new building codes can be costly and will delay your renovation plans. Be sure to vet contractors properly on their experience and knowledge of building codes. Local contractors may have a better pulse on updated rules than an out-of-city or out-of-state contractors.
Not Budgeting for the Unexpected
Lastly, one of the most important mistakes to avoid in CRE Renovations in Boston involves budgeting. Even when working with a tight budget, you should account for the unexpected. It’s rare for any project to run smoothly, no matter how well planned. By buffering your budget and including funds to cover unanticipated issues and delays, you will alleviate a tremendous stress and burden from your renovation project.
These common mistakes to avoid in CRE renovations are just a few helpful tips. Given the complexity of most renovation projects, there are many more mistakes that you could potentially encounter. Consider working with seasoned and local professionals who know the market and have the experience to help you avoid the many pitfalls.