Factors to Consider During a Design-Build Approach to Building a Commercial Project

As a commercial design-build firm, it’s only natural that we believe a design-build approach is the best way to go about commercial construction. You can read more about what sets a design-build firm apart from the competition in this post. As a quick refresher, a design-build firm is a project delivery system where the design and construction services are contracted by a single entity. 

Because this process differs from other types of builds, there are certain factors you need to consider when taking a design-build approach to building a commercial project. Let’s take a closer look at those factors. 

Why Choose a Design-Build Approach?

When you choose a design-build approach for your commercial project, it can save you time and money because it’s an environment that encourages innovation and collaboration. After all, there’s a reason the design-build process is recognized as the best performing delivery system for both schedule and cost. 

It’s also an efficient process, as there’s only one entity responsible for every piece of the project. That sense of ownership means that if something goes wrong during the process, the focus is solely on making it right instead of putting the blame on someone else. We encourage you to learn more about the benefits of a design-build process with our firm here

“A design-build is really unique in its delivery method. It allows us to pull in the real estate team and the architecture and civil engineering team together so we can work as efficiently as possible to get started on a new building space for our clients.” – Steven Peedin, Owner

What’s Your Need for Growth?

Before you decide to build your own commercial space, think about why your business should move. Is there a reason to justify your own building or does it make more sense to keep renting your current space? That determination is probably the most important factor for you to consider. Sometimes, it just makes more sense to continue renting, and that’s ok. But, over time, you might realize that you’re better off building your own commercial space. 

Typically, growth, whether in the form of starting a new business, renting a business, or outgrowing your current facility, are just some of the determining factors in whether or not you’re ready to own your own commercial property. If your current growth is projected to continue, that’s a good sign that it’s time to connect with a design-build firm to develop plans for a new building.

“Don’t fear this step in the growth of your company. We’re here to help you allay your fears of what to do next and work as your partner through this journey. We understand it’s a big decision, but it doesn’t have to be a scary one with the right team on your side.” – Steven Peedin

Do You Have the Time to Build?

If you’ve always rented commercial buildings in the past, it can be easy to underestimate the time it takes to build. The building process often comes with unexpected delays, so you need to look at the amount of time remaining on your existing lease before deciding to build a new space. 

For example, if your business’s current lease ends in six months, there’s not enough time to complete your new build project before the lease expires. As a best practice, we recommend starting the build process when you have about two years left on your existing lease to cover your bases. 

What’s Your Risk Tolerance?

Building a commercial space is a significant financial investment that requires careful consideration and planning. Before moving forward on a decision, you need to think about whether your business is fiscally responsible. 

Further, you should ask yourself if you’re willing to risk leveraging your company and assets to borrow the necessary capital to fund your project. 

Do You Have Access to Capital?

Once you decide that your business is prepared for the costs involved with a commercial design-build, you have to make sure you have access to capital. Look at your credit score and determine if you can get a loan. Can you prove your company’s fiscal responsibility?

We know this can be overwhelming; if you choose Rufty-Peedin as your design-build firm, we can help you put budgets together that will satisfy the bank’s limitations to help you get the funding you need for your project. 

What’s the Comparison Between Rental and Mortgage Payments over 10 Years?

Financially, the best way to see if it makes sense to build versus rent is to compare how much you’ll pay in lease payments over a 10 year period compared to the mortgage payments you’ll pay if you own your space. 

You’ll also want to consider the equity you’ll gain by owning compared to the fact that there’s no equity in renting. The equity factor is enough for some companies to justify building instead of continuing to rent. 

Do You Have Access to Land?

Once you decide to build your commercial space, you have to find a place to put it. If you don’t already have a piece of land in mind, the Rufty-Peedin team is here to help. 

We can help you look for suitable land and we’ll also connect you with local, vetted real estate brokers to help you find the perfect place to continue growing your business. 

Where Should Your Building Be Located?

As the old saying goes, real estate is all about location, location, location, so choosing the right space for your building is key. However, if your business requires a “prime” location, like in the heart of Downtown Raleigh, you should expect to pay a premium in either rent or mortgage payments. 

If your location can be more flexible, consider a location on the outskirts of the city for a more affordable option. Again, from start to finish, Rufty-Peedin is here to help you find the perfect location for your business. 

What Are the Interest Rates Like?

Currently, we’re experiencing historically low-interest rates, which means there’s never been a better time than now to start the design-build process. We don’t know how long these rates will stay low, so if you’re on the fence about building, that can be a good motivator to take the next steps. 

How Can Rufty-Peedin Help?

As an experienced design-build firm, we’re here to help you every step of the way. Our team can connect you with anything you need to facilitate the build process, including walking you through the considerations we talked about above and telling you more about the benefits of being an owner-occupied facility. 

“When you choose us to be your design-build firm, we can coordinate any aspect of the building that you need, right down to the furniture that’s inside. We become your personal developer, and general contractor so you can focus on running your business and keeping operations as normal. We’ll handle the rest.” – Adam Zaytoun, Project Developer


Contact us today if you’re ready to take the first step toward building the commercial space of your dreams.

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