The decision between commercial renovation and commercial construction when it comes to commercial projects is never easy. While each has its advantages, some cons must be taken into account as well.

For the chance to make an informed decision on whether renovation or construction suits you best, it is paramount that you consider some key factors

The Cost of a Commercial Renovation Vs. the Cost of a Commercial Construction

Cost is arguably the most critical factor to consider. As a general rule, renovations are less costly than new constructions. However, this only applies when the improvements needed are not expansive. If you have to replace the HVAC system (Heating, Ventilation, and Air Conditioning) for instance, then the cost becomes astronomically high. In such a situation, then new constructions are preferable.

With a commercial construction, the initial cost is higher. The advantage, however, is that you get more flexibility in the design aspect and location.

The critical consideration, therefore, is to examine your budget. Determine whether a renovation will cost you more or less in the long run. Also, determine whether the money you have can exhaustively cover new construction. Once you do so, you can now pick which commercial project is more pocket-friendly.

The Shelf Life of Each Commercial Project

The shelf life of a building is the measure of how long a structure can be in use without the need for any major renovations. Because a new building has a new foundation, uses modern materials and has a new electrical and plumbing system, then it takes a while before any update is required.

With a renovation, you will probably need to keep doing repairs every few years to ensure the building is up to code. Once again, depending on budget and convenience, you will need to determine whether a new construction that will give you a 10-15 years’ grace period before the need for renovation arises is preferable, or if a commercial remodeling every five years suits you better.

Demolition Requirements

Demolition is a subset of the cost factor that applies if you are not moving to a new place and you need to demolish an existing building.

In Australia, the average national cost of demolition ranges between $12,000 and $40,000. In Perth in particular, the average price is $20,000. This a massive amount of money and hence a key consideration when deciding between commercial renovation or commercial construction.

Time Needed to Complete Both a Renovation and a Construction

The time needed to complete each project is a critical consideration. A renovation is usually a faster solution. Therefore, if the building has to remain in use during the project, then a renovation is a better option. You should note though, that if the building is in use during the renovation, it might slow down the remodel which will in turn increase costs.

New constructions take more time than renovations. Also, if demolition is required, then the business operations must be moved elsewhere for the duration of the construction.


It is often advised that in addition to in-depth research, you should consult a professional well versed in both commercial constructions and commercial renovations for more information and guidance on what will work best for your particular situation.

A local professional is even more desirable because they have a good grasp of the market and trends in that particular city. In Perth, for instance, Chest Constructions are particularly renowned as commercial builders Perth experts. Contact us today to see how we can help you.