Should we stay or should we go? Refurbishment versus starting afresh

As commercial tenants in Western Australia navigate their space requirements, the decision between moving or refurbishing an existing property is crucial. At Attentus Consulting , we specialise in project management for commercial construction, fit-out and refurbishment and have seen firsthand how refurbishment can be a game-changer for tenants. Here’s a snapshot as to why refurbishing should be a top consideration for tenants looking to enhance their commercial spaces, along with some potential risks to be aware of.

Benefits of refurbishment

1. Cost efficiency

Refurbishing an existing space can be significantly more cost-effective than moving into a new space. Tenants can reduce the high costs associated with fitting out a blank canvas through effective re-use of the bones of their current space. By modifying an existing fit-out, tenants can redirect their budget towards higher-quality finishes and fittings and technology that enhance the space’s functionality and appeal, providing better value for money.

2. Business continuity

Time is money, especially for businesses reliant on their physical presence. Refurbishments can often be phased to minimise disruption, allowing parts of the business to remain functional. With remote working arrangements becoming ever easier, there is also now less requirement for churn space while works are taking place.

3. Sustainability and environmental impact

For tenants committed to sustainability, refurbishing is an excellent choice. It reduces the environmental impact by minimising waste and lowering carbon emissions compared to demolition and new construction. Tenants can also incorporate energy-efficient systems and sustainable materials into the refurbishment, promoting a greener business operation and potentially reducing long-term utility costs.

4. Preserving heritage and character

Western Australia has many hidden gems with historical and architectural significance sitting under-utilised. By refurbishing, tenants can enjoy modern amenities while preserving the unique character of older buildings. This blend of old and new can enhance brand identity and create a distinctive environment that resonates with employees and clients.

5. Enhanced property value

A well-refurbished space can increase the overall value of the property. For tenants, this means occupying a high-quality, attractive space that can enhance business image and appeal to clients and customers. Additionally, modern and well-maintained spaces are often associated with higher employee satisfaction and productivity. If tenants are investing in their spaces, then landlords are likely to reciprocate and ultimately the whole building amenity improves as a result.

6. Employee impact

A less obvious outcome is the positive impact on an organisation’s people. Moving requires a large change management piece that is often overlooked or left too late to start. We have frequently seen that uncertainty associated with moving can unsettle employees, ultimately impacting productivity, wellbeing and retention. While change management remains important even for a refurbishment, a lot of the unknowns that are typically the root cause of anxiety are removed.

Potential Risks of Refurbishing

1. Latent conditions

Existing buildings may harbour hidden, unforeseeable issues which can lead to project delays and additional costs. This could range from discrepancies on site versus existing drawings to presence of hazardous materials to compliance problems. Conducting appropriate due diligence prior to project commencement can help reduce this risk.

2. Compliance and regulatory challenges

Older buildings may not meet current building codes and standards, necessitating upgrades to comply with regulations. This can be both time-consuming and costly. Tenants should work closely with their project management team to understand these requirements and plan accordingly.

3. Limitations in design and layout

While refurbishments allow for significant customisation, they are still bound by the constraints of the existing premises. Certain design aspirations might need to be adjusted to fit within the building’s architectural limitations. Clear communication with the design team can help manage expectations and find creative solutions.

If a tenant's business has grown or evolved during the lease term then a relocation may be inevitable if the existing building parameters are not suitable.

4. Compatibility of new and old systems

Integrating new technologies into older buildings can pose challenges. Ensuring compatibility between old and new systems requires careful planning and innovative solutions to avoid operational inefficiencies and unnecessary cost.

Conclusion

For commercial tenants, refurbishing an existing space presents a cost-effective, sustainable, and efficient solution to modernising their workspace. While there are potential risks, thorough planning and expert project management can mitigate these challenges. At Attentus Consulting we are dedicated to guiding tenants through the refurbishment process, ensuring their spaces are transformed to meet their needs and exceed expectations.

If you’re considering enhancing your commercial space, let’s explore how refurbishment can be the strategic choice for your business while effectively managing potential risks.

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