A lot of commercial property will need to undergo some sort of updating process when you first buy it. All commercial property will need an update at some point in its history to stay competitive in the real estate market. When it comes to these updates, it’s important to know the difference between renovation and redevelopment. These two key commercial real estate terms could impact both the value of the building and make a big difference to current and future tenants.
What the Difference Between Renovation and Redevelopment?
In the simplest terms, redevelopment is going to be a much bigger project than a renovation. Redevelopment can involve the demolition of some or even most of the current building. Redevelopment often occurs in up-and-coming areas where an older building needs modernization to appeal to tenants. Redevelopment may also involve changing the use of the building, say, from heavy industrial to light commercial.
In contrast, a renovation happens on a smaller scale. Renovations may include aesthetic updates to areas such as lobbies or bathrooms. Tenants usually stay in place during a renovation, while they may have to move out (or find a new commercial space) during a redevelopment.
Should You Renovate or Redevelop Your Commercial Property?
So which one is right for your commercial building? Knowing the difference between these key commercial real estate terms is just the beginning. If you aren’t sure whether your building needs a renovation or a total redevelopment, be sure to speak to a commercial real estate broker in the industry. A commercial real estate broker can help advise you on what will be the best investment for your property.
If you are searching for commercial real estate advice, you can get in touch with the Lee & Associates Orange team. We can help you evaluate your current property or find one that’s perfect as your next investment. Connect with us today!