Commercial Building Renovation While Tenant Occupied

Many commercial buildings, like office buildings, medical centers, and hotels, can be renovated while tenants or guests are occupying space. Renovating a commercial building while it is tenant-occupied (when possible) makes a lot of sense. It can reduce income loss, lowering the total cost of the renovation project resulting in a faster return on investment. And when the renovation project is finally over, you will have a beautifully updated commercial building with positive cash flow to show prospective tenants. While tenants are usually excited and understanding about the results that a building renovation brings, keeping them updated and informed during the building renovation is the key.

Keep Tenants Informed

Letting tenants know what to expect during the building renovation and providing them with daily or weekly progress updates will keep tenants happier. Problems and tensions usually occur when there is a failure to communicate. So, if building entrances, elevators, parking lots, or other areas are going to be temporarily blocked, give tenants and visitors as much advance notice as possible. Also, offer alternative solutions and post descriptive signage to help tenants and visitors navigate around restricted areas during the building renovation. Give tenants a single point of contact and encourage them to call when issues or questions arise.

Minimize Disruptions

A commercial contractor with experience in tenant-occupied renovations will have a plan in place to minimize disruptions. Depending on the extent of the upgrades, the commercial contractor will group the project into different phases. The phased approach allows construction workers to remodel portions of the building while tenants are occupying the unaffected spaces. Some construction work may also be scheduled after hours or on weekends to minimize disruptions further. Your commercial contractor may also produce a renovation schedule for each office in the building. It allows tenants in those offices to understand when their unit will be renovated. But to comply with federal, state, and local building codes and best practices safety guidelines, some disruptions that may inconvenience tenants or visitors cannot always be avoided. Staying proactive and communicating with tenants early and often will go a long way towards managing expectations during any unavoidable inconvenience throughout the renovation process.

Offer discounts and other incentives

The last thing a building owner or landlord wants is to lose tenants during the renovation. Sometimes the noise, disruptions and other inconveniences are too much for some to bear. You can minimize tenant loss by offering rent or leasing discounts and other incentives that will encourage them to stay during the building renovation project. Paying for the cost of furniture removal or relocating tenants to a remodeled office if they need to vacate their current office space for an extended period to accommodate them is another incentive you can offer. You might also provide complimentary pastries and coffee in the morning or assorted sandwiches in the afternoon for the tenants to enjoy as a gesture of goodwill.