Construction insights: Converting vacant commercial spaces
When it comes to finding the right location for a new business concept or growing brand, choosing between building new or converting an existing space is an important decision. In high-density markets like Chicago's suburbs, repurposing a vacant commercial property can be a great way to secure a top location while simultaneously reducing construction costs. But there are important construction considerations to keep in mind when vetting space.
Understand your infrastructure needs: Knowing what it will take to make a space function for a particular purpose is key in choosing an existing commercial property – especially when converting one to an entirely new purpose. A few years ago, the landlord of a downtown high rise asked us to provide a magnitude budget – or ballpark estimate – to convert a vacant first-floor retail space into a restaurant. Once we budgeted the necessary infrastructure to accommodate a restaurant kitchen, which has much different power, cooling and exhaust needs than a retail store, the landlord ultimately decided it was not realistic to convert the space. While not all conversions will come up against similar budget constraints, this is an example of how a construction firm can double as a consultant by anticipating infrastructure needs, and associated costs, to determine a project's feasibility.
Get creative with big spaces: One emerging opportunity in Chicago's suburbs, amid retail vacancy rates hovering around 10 percent in the metro area, is the availability of vacant big-box and department stores that, before the rise of e-commerce, drove traffic to local shopping centers. These now-empty spaces offer ample square footage that can be used in a variety of ways – I've seen them turned into recreation offerings such as indoor soccer centers, arcade-type destinations and trampoline or hoverboard parks, as well as trade schools and even office space.
From a construction standpoint, these conversions can be as simple as stripping out existing fixtures and finishes to end up with a white box space as a starting point, or as complex as reconfiguring structural components. For example, Englewood recently worked with a shopping center redevelopment team to evaluate a former department store as a location for a new sports-based concept. Construction plans entailed removing multiple floors – and their central supports – in the store's interior, and creating a new structure within the existing shell. In this scenario, bringing an experienced commercial contractor to the table early on can provide insights into not only the best construction approach, but also costs involved.
Find “apples-to-apples” opportunities: A more straightforward way to use existing commercial space is bringing in a business concept similar to what the location housed previously. In these cases, the infrastructure and square footage needs are similar, which helps minimize construction cost and timeline. In a restaurant-to-restaurant conversion, for instance, typically the back-of-house setup and mechanicals can be repurposed, and the client can invest most of their construction budget in cosmetic improvements. Likewise, a retail-to-retail conversion can be as simple as a refresh of flooring, paint and lighting.
Express brand identity: At the end of the day, one of the most important pieces of advice for taking over an existing commercial space is to find a building with good bones that still allows for a new brand identity to be created, whether through signage, finishes that match brand standards or unique design elements. After all, the right construction partner can make any space function for almost any purpose, but it is the strength of the business and the brand that will ultimately make the project a success.
• Chuck Taylor is director of operators for Lemont-based Englewood Construction.