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New or Renovated? A question of building ownership

When you are looking for a new facility for your business it is always important to evaluate all the factors that go into your buying decision.

We need to consider

  • The cost of property, undeveloped or existing structure
  • The cost of labor and construction
  • The Total Cost of Ownership

These factors all impact your buying decision when it comes to a new facility to run your business out of because they affect your business over the lifetime of the building.

When exploring new facility options, you can essentially narrow it down to two options, new or renovated.

Renovating?

When looking to renovate a facility, you may be interested in the cost savings of purchasing an existing facility over buying land and then erecting a new building. While these initial cost savings may be very enticing you need to look at the bigger picture.

The cost savings of renovation usually come with a price, whether that be a less energy efficient building, unforeseen property issues or limit design capabilities. Renovating an existing structure needs to be properly inspected for Total Cost of Ownership.

What that means is that you must identify all the costs that will be associated with the building over its lifetime. This can be quite expensive with renovating a building.

New?

When creating something from nothing obviously, you have the ability to build whatever you would like. Having total freedom of design and styling of your building is the beginning of the benefits. You can choose between conventional construction methods or more efficient pre-engineered metal buildings (PEMB) construction.

When looking at a new building the initial construction costs can seem daunting. As before, this is not the only cost associated with building ownership. Total Cost of Ownership needs to be analyzed to properly decide on what building solutions makes the most sense for your business.

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