Renovation Costs: How to Nail Your Renovation Budget
After over 28 years of business, we’ve found that many of our clients come to us in the beginning stages of a project with many questions about what a multi-family property renovation looks like. To give you a glimpse of our process we sat down with our Hartman Design Group president, Phyllis Hartman, to discuss some of the most commonly asked questions. This will be a multi-part series so stay tuned for part two!
Question 1: How much is the renovation going to cost?
Working within a budget when renovating a space or an entire building is usually the owner’s primary concern, meaning “how much will it cost” is usually the first question we are asked. In order to best help our clients set priorities, as well as create a realistic budget and project structure, our design team must first understand many aspects of the project, asking questions such as:
What is ownership expecting to achieve by renovating? For instance, is the building being repositioned from a C to a B, a B to an A, or is the goal to make the property the best B in the marketplace?
Will the renovation involve only finishes and furniture, or will spaces be re-arranged?
How old is the building and what is the current condition? A 5-year-old project may only need a quick furniture refresh, while others that are over 10 years or older may require a complete overhaul to remain competitive in the market.
Can the property compete in the current marketplace?
Are you losing residents or prospects? If so, try to determine if the condition of the interior is a factor. What is being said on social media about the property?
What is the schedule? An accelerated schedule can cost more than following a normal design and construction schedule.
Will the work be phased or completed at one time? Phasing is usually more costly.
Will building operations need to move to another part of the building during the renovation? It is important to factor this into the budget.
Can the contractors and subs work in the building during normal business hours?
Will there be security concerns during the renovation that may require either additional staffing or cost?
In an effort to gain the highest return on investment, we encourage collaborative discussions to determine where the clients can best spend their money. Phasing the design and construction is a great way to spread the budget over several years, though it is important to consider that phasing does add to the total cost, and can be frustrating to residents and prospects. Living or working in a building that is in a state of perpetual construction can be difficult.
The Meridian at Carlyle located in Alexandria, VA is an example of one of our projects that were finished in phases. Because the building was 12 years old when the repositioning began, the first priorities were the lobby and leasing spaces. The corridors have been phased over four years, and the clubroom was renovated two years after the lobby. This allowed the owner to spread the cost of the renovation over 5 to 6 years.