Every developer or owner wants to maximize the value of their commercial development projects. As a general contractor that prioritizes honest and intentional business practices, we approach our work by putting ourselves in the other person’s shoes. We’ve been in the game long enough to recognize the pitfalls that can decrease the value of a project. We’ve also learned that collaboration with architects and leaning on the expertise of subcontractors is key to maximizing the value.
Our systematic approach to construction and development is one of the ways we set our projects up for success before the first shovel ever hits the ground. Our pre-construction team reduces costs, minimizes delays, and identifies alternate solutions to increase the overall value of a project. This has become an increasingly important way to help project owners who are navigating rising commercial construction costs avoid the new obstacles our industry is facing, such as work shortages and supply chain issues.
At Crain, we’ve had the opportunity to work with owners from hospitality groups, auto dealerships, and small business owners on a variety of new construction and renovation projects. While each project is unique, there are a few common best practices that project owners are implementing to create more value during the construction project.
5 Ways to Create More Value in Commercial Development Projects
1. Invest in Energy Upgrades that Save Money in the Long Run
It is always important to think about the future, especially when you consider that upfront construction costs only make up between 10% to 20% of the lifetime cost of a commercial building. Value-added pre-construction services can help you find ways to make your commercial buildings run more efficiently.
The good news is that there are a number of ways to improve a building’s efficiency and incorporate a sustainable construction approach into your project. Considering your building position, windows, lighting choices, and energy management systems are all ways to create more value in your project.
2. Be Open to Alternatives
Product choices and materials used in a project have become an increasingly important cost factor. These details can make all the difference in how much time and money are saved on a project. Crain works proactively to help our clients identify the most cost-effective solutions for their projects. In some cases, they might not even realize alternative options are available.
3. Optimize Construction Scheduling and Workforce Needs
Constructibility issues can quickly escalate the cost of a project. Savings can often be found when commercial builders optimize construction scheduling and workforce needs to reduce downtime and unproductive tasks.
At Crain, we’ve found that it’s helpful to identify value-added options, constructibility issues, and project needs early in the process. But it also continues throughout the life of the project. We believe it’s important to collaborate with stakeholders across the project—from owners to subcontractors—throughout the entirety of a project.
4. Consider Walkability and Transit Factors
Walkability and transit are two increasingly important value factors—especially for urban development or tight-site projects. It’s important to consider how your project integrates into the environment and find ways to optimize the experience for the end users, whether they are tenants or customers.
Research has shown that higher levels of walkability are correlated with better real estate performance for both commercial and residential properties. Additions such as lighting or new walkways are also low-cost upgrades that will pay off when it comes time to sell your commercial property. If applicable, consider how you can optimize the walkability and transit approach you take in your project.
5. Don’t Overlook Amenities and Small Improvements
The amenities that a commercial building has to offer can be a helpful way to establish differentiators and increase the value. Of course, the size and location of your building will determine how feasible incorporating these amenities are, but they have the ability to significantly increase property values if they are included.
Maximize the Value of Your Next Commercial Development Project
Value engineering can occur at any phase of a project, but it is most effective when used in the early stages of construction. We like to see our clients and friends take this approach because discovering opportunities and challenges for the property is so advantageous for your pre-construction planning. As an experienced general contractor, we can confidently assess the infrastructure that’s already in place at your site and generate ideas about how to make your project even more valuable.
Contact our team to learn about the specific ways we can help you create more value in your next commercial construction project.