Acquisition vs. Building New in Commercial Construction Projects

When a general contractor is hired by a client for a commercial construction project in the Twin Cities metro, there will always be two options: new construction or acquisition. New construction is the process of creating a building for the client from the ground up, while acquisition involves purchasing an existing structure and then renovating it to meet the needs of the client.

These are both viable options for commercial construction projects, but the superior option will be dependent on the specific needs of the client. Continue reading to learn about the differences and advantages of acquisition and new construction so that you can make an informed decision for your commercial construction project.

Pros & Cons of New Construction & Acquisition

• Occupancy Timeline

Generally speaking, it will be faster to purchase a standing building than it will be to build a new one. If a client is determined to get their business up and running in the new premises as soon as possible, acquisition offers a shorter occupancy timeline than new construction does. Depending on the number of permits that need to be obtained and how long building renovation takes, it may be possible to occupy an acquired commercial building in a month or two, where new construction may take over a year.

• Design Customization

If your client wants complete control over the design and layout of their commercial premises, new construction is definitely the better option. Building a new structure will allow your construction company in the Twin Cities to accommodate all of a client’s needs. This same customization won’t be possible with an acquired building that’s already standing, and even extensive renovation may not fully satisfy a client’s desires.

• Sustainability

An issue with many older commercial buildings is that they lack the sustainability of contemporary structures. When you acquire an existing building, it may suffer from energy inefficiencies and adopting more green usage practices may be unfeasible even after renovation. With new construction in the Twin Cities, sustainability can be worked into the design from the start, allowing you to implement cutting-edge, eco-friendly technologies and optimize energy efficiency for the occupants.

• Optimal Location

It can be difficult to find new lots in prime locations in the Twin Cities metro to build on – especially in downtown Minneapolis and St. Paul. Acquiring an existing structure may allow a business to occupy a more desirable location than trying to purchase a new lot. On the other hand, purchasing a new lot on which to build something new may be more affordable and provide an ideal location in some areas.

• Minimal Maintenance

Beyond the initial cost of purchasing or constructing a commercial building, there’s also the ongoing costs of maintenance to consider. Though the cost of new construction often exceeds the cost of acquisition, ongoing maintenance costs may be significantly lower for new commercial buildings. That’s because a new building will be constructed to comply with all contemporary building codes, as well as incorporating high-quality construction materials and design principles for improved structural integrity, compliance, insulation, and occupant safety.

• Fewer Regulations

Constructing new buildings in the Twin Cities area often comes with many regulatory hurdles, and it can be challenging to obtain permits for certain building features. Zoning and other regulatory issues are especially prevalent when building in urban environments. While renovating a building can come with its own regulatory issues, these regulations tend to be far less cumbersome than those involved with building a new structure.

• Long-Term Cost Efficiency

Acquisition is sometimes favored for being more cost-effective on the front end but, depending on the age of the building, this option may prove more expensive in the long term. New construction will generally be more energy efficient, demand fewer repairs and less maintenance, and come outfitted with state-of-the-art safety and security systems. For all of these reasons, building a new commercial structure may actually prove more cost-effective over time.

Experienced Commercial Construction Contractor in the Twin Cities

Whether you plan on acquiring and renovating a commercial property or having one built from scratch, you’ll need to hire a reliable general contractor for the project. Get in touch with Heritage Construction Companies today if you would like our help with a commercial construction project in the greater Twin Cities metro area.