Which Commercial Construction Services Do You Need For Your Project?

Commercial construction is simply an umbrella term to describe a comprehensive scope of commercial space planning, zoning, designing, building, maintaining, and more. Whether you are building new or renovating a distressed asset, it is important to streamline your thought process by identifying which types of commercial construction services you will require for your construction plans.

Continue below to review some of the most common services provided by an Indiana commercial construction and general contracting company, plus learn how to get your plans into motion before the year is up.

Commercial Construction Services Indiana 317-253-0531
Commercial Construction Services Indiana 317-253-0531

Commercial Construction Services in Indiana

General Contracting

A general contracting company works as a single source of contact and management by providing all material, labor, equipment, and services required for a commercial construction project. In most cases, they are responsible for hiring and managing specialized subcontractors to perform all or some of the work, such as roofing, windows, framing, drywall, painting, electrician work, and more.

Construction Management

Commercial construction management applies concentrated managing system to oversee all aspects of a project, from planning and preconstruction, to designing, building, finishing, and more. This approach ensures an organized and streamlined construction process, therefore, controlling costs and reducing the likelihood of setbacks and project delays.


Commercial construction preconstruction services apply the innovative knowledge of precision forecasting to evaluate and establish every element of a project before breaking ground. This allows the development of a solid base, as well as a steady timeline for a project, including specifying all aspects, aligning design/build agendas, recognizing milestones, creating contingency plans, and assessing alternatives. This approach helps to accurately reflecting real world conditions, controlling costs, and abating complications or setbacks.

Tenant Improvements and Remodels

A commercial construction company will often provide services for apartment complexes, condominiums, retirement centers, and other types of commercially owned residential living communities. Everything from permit applications and materials procurement to construction management, financial plan compliance, and more are handled by the commercial construction company. 

Facility Maintenance

Once a project is complete and a property is built, there is still a need for ongoing, specialized maintenance. Facility maintenance services sustain all systems and structures within a building. The commercial construction company will set up a program, or remain available, to implement specialized maintenance work that cannot be performed by in-house custodial and day-porter staffs, such as electrician work, sign repair, and more.

Industries and Businesses We Serve

Space Planning and Permitting – Zoning and permits, site selection/evaluation, preconstruction, community due diligence, land acquisition, economic incentive inquiries, feasibility studies, constructability reviews, site audits, site entitlements, financial analysis/structuring, and more.

Office and Commercial-Use Construction – Offices, office buildings, office complexes, high-rises, corporate campuses, single and multi-tenant offices, public buildings, auditoriums, pavilions, conference centers, and similar properties.

Healthcare Construction – Hospitals, medical facilities, rehabilitation centers, nursing homes, medical offices, spas, esthetician offices, pharmaceutical factories, wellness centers, sports medicine centers, and all other healthcare-related industries.

Retail and Franchise Construction – Shopping centers, malls, strip malls, clothing stores, boutiques, franchise businesses, spas, and more.

Restaurant and Food Service Construction – Restaurants, eateries, pubs, bars, cafes, catering venues, diners, cafeterias, grocery stores, franchise businesses, food market pavilions, factories, distribution warehouses, commercial kitchens, and more.

Fitness and Gym Construction – Gyms, fitness centers, yoga studios, Pilates studios, ballet studios, dance studios, indoor pools, spas, sports complexes, tennis courts, basketball courts, recreational centers, and more.

Commercial Flooring – Standard flooring, specialty flooring, space planning, repair, replacement, installation, procurement, etc.

Commercial Painting and Drywall – Space planning, repair, refinishing, installation, designing, etc.

Would you prefer to skip the difficulty of seeking out the best commercial construction company in central Indiana? Contact BAF Corporation at 317-253-0531 for honest and skilled general contracting and commercial construction in Indianapolis, Indiana. We serve clients all throughout the state with the highest level of professionalism and excellence.

You Should Also Read:

FAQS About Planning a Commercial Construction Project
The Two Key Components in the Commercial Construction Estimate Process
7 Qualities to Look for in a Commercial Construction Company

Top 3 Credentials to Look For in a Commercial General Contractor

When you are ready to move forward with a commercial construction project, your top priority is to hire the right commercial general contractor in Indianapolis. With the right professionals on the job, you can trust that your new build, expansion, or renovation is up to spec and ready to generate income. Below are the top 3 credentials you should look for first in any Indiana commercial construction or general contracting company. By sticking with these important qualities, you can better narrow down the pool of potential hires in your area.

Commercial Contractor Indianapolis Indiana 317-253-0531
Commercial Contractor Indianapolis Indiana 317-253-0531

Top 3 Qualities of a Dependable Commercial Construction Contractor


With commercial construction, the most vital credential a company can have is proper professional licensing. Always ask to see documentation of a contractor’s license, as well as any other licensing credentials you might be interested in learning more about. Aside from proper licensing, it is critical to hire a company that has an active insurance policy and bond. Not only does this indicate they are a professional corporation, but it also tells you that clients are protected in terms of liability. Check with your state’s construction licensing department to verify a company’s licensing before moving forward with their services.


Although hiring a company that has just opened its doors is not always a bad thing, hiring a company that has very little previous construction and contracting experience is. Experience is key when it comes to developing and executing a successful commercial construction project, whether a new build or a simple remodel. As a general rule of thumb, a trusted and valuable commercial general contracting company should have at least 10 years of hands-on experience in the industry, at least 5 years of being an established business, and several projects in their portfolio.


To learn whether or not a commercial construction company is a dependable hire, you can ask them for references; and a trusted and successful company will have them to give. But in addition to reading through their referrals, do not be afraid to actually follow up on a few. Choose one or two past clients and reach out to them for information about their personal experience with the company you are researching. This can give you the information you need to determine if the company is a good fit for your project goals.

Are you wondering which Indiana commercial general contracting company to trust for your upcoming commercial build or remodel? Contact BAF Corporation at 317-253-0531 for comprehensive commercial general contracting services in Indianapolis, Indiana. We work with clients all throughout the state.

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Common Types of Ceiling Cracks and What They Mean

When you spot a crack in the ceiling in your commercial building or office, you might feel a sense of panic. After all, your bottom line is always at the top of your mind. Your queries might mimic questions like, “What could this crack mean? Is there a serious underlying matter causing this crack? Is my property going to require a tedious renovation? How much is this going to cost me?” But before you fear the worst, keep in mind that not all ceiling cracks are serious. In fact, some are merely cosmetic. For this reason, a little knowledge goes a long way, especially when it comes to peace of mind.

Continue reading to learn 3 of the most common types of commercial ceiling cracks, what they might be telling you, and where to get trusted commercial general contracting service to resolve your structural problems.

Commercial Water Damage Remediation Indianapolis Indiana 317-253-0531
Commercial Water Damage Remediation Indianapolis Indiana 317-253-0531

Top 3 Most Common Commercial Ceiling Cracks

Thin Straight Cracks

If you discover a fine, straight crack in your ceiling, it is often an indication of poor joint taping. Basically, whoever did the framing work for the building did not use a sufficient amount of drywall mud during the taping step of the project. As a result, the tape did not adhere well enough to the joint. This creates a crack along the edge of the slackened tape. The good news is that this is entirely superficial, so there is no need for immediate repair. If you do mind the cosmetic defect, you can apply a thin layer of drywall compound under the loose tape and re-securing it to the drywall.

Tiny Spider Web Cracks

When you have tiny, web-like cracking in your ceiling, it is likely another superficial defect. Such cracks generally occur as a result of insufficient drywall compound when creating a textured ceiling. In contrast, if the cracks are more like a starburst, or go outward in multiple directions, it is likely a result of using too much drywall compound to create a textured ceiling. This is because compound shrinks as it is drying. To fix this problem, you can simply cover the blemish with more drywall compound, but this may require some sanding and priming first.

Discolored Cracks

When you spot yellowish brown stained cracks in the ceiling, it is not a good sign. Not only could discolored cracking be a sign of a water leak, but it could also pose serious structural hazards. In this case, you would need emergency commercial property inspection services to confirm the cause of the leak. Once you have determined what has caused the leak, you will need to have that problem repaired before you can refinish the drywall and ceiling.

Regardless of the types of cracks you have in your ceiling, it is important to have them inspected as soon as possible in case the problem is a water leak or structural issue. Try to have your inspection scheduled within 3 to 5 days to be safe. Be sure to choose a licensed, bonded, and insured Indiana commercial general contractor for trusted repairs and renovations.

Are you ready to remodel or renovate your commercial property and start fresh with a clean and well-designed space? Contact BAF Corporation at 317-253-0531 for professional commercial general contracting services in Indianapolis, Indiana. We serve commercial and industrial clients all throughout Central Indiana.

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4 Tips for a Budget Friendly Commercial Building Remodel

First impressions are valuable, not just personal affairs but in business too if your commercial building looks like it could use some updating, it probably does. Many business owners and commercial realist April proprietors feel weary about commercial remodeling due to budget concerns. However, with the right approach, not only could you afford to remodel your commercial building, but you could quite possibly keep the doors open for business while under construction.

Continue reading to learn 4 tips that can help you achieve a budget-friendly commercial remodel, plus a bonus tip on how to get superior commercial general contracting services that will deliver high-quality results that meet your economic needs and expectations.

Commercial Remodeling Indianapolis Indiana 317-253-0531
Commercial Remodeling Indianapolis Indiana 317-253-0531

Cost-Effective Commercial Remodels Start With the Right Hire

Above all else, the most important toward a budget friendly commercial remodel is hiring the right commercial general contracting company. These professionals have the acumen, experience, and resources to ensure your commercial building remodel is finished ahead of schedule and under budget. Your lead commercial general contracting manager can help you analyze, plan, and sustain your remodeling budget from start to finish.

You don’t need a large and invasive commercial construction overhaul to upgrade your commercial building. With these four tips, you can maintain your budget integrity while also giving your commercial building a fresh facelift:

Curb Appeal

Curb appeal is very important, especially when it comes to first impressions. The exterior aesthetic of your building plays a major role in customer satisfaction, as well as first-time and repeat traffic. Fortunately, you don’t need a major overhaul to improve your building’s façade. Along with the guidance of your commercial general contracting team, focus on exterior renovations like structural damage repairs, window/door replacement, roof work, painting, new signage, pavement repairs, and landscaping.

Interior Renovations

It is recommended to update the interior décor of your commercial building every 3 to 5 years, just like you would do for your own home. Consider updating appliances, fixtures, paint, drywall, carpeting, flooring, and lighting. Small modifications in these areas can instantly give your interior a fresh upgrade without breaking the bank or closing the doors.

Interior Redecorating

In addition to interior renovations, consider redecorating. Update furnishings, art, rugs, foliage, smart technologies, and similar contemporary interior design elements. Interior redecorating for commercial buildings is a cost-effective approach to commercial building remodeling. Not only does this make your business look better and feel more inviting, but it enhances work environment contentment. The happier your staff is, the more productive they are, which directly contributes to your bottom line.

Floor Plan Optimization

Could your interior floor plan use some improvement? Does your staff feel cramped or incapable of performing their daily operations with optimum efficiency? Do your customers have trouble navigating their way around your establishment? Our conference rooms to small and individual workspaces too large? If you are experiencing floor plan and efficiency, you should consider modifying your floor plan design so that it delivers maximum flow and performance. This will help ensure that every square inch of space within your commercial building is being fully utilized.

Would you like to know how to get the best commercial general contracting service that is sure to fit your remodeling budget? Contact BAF Corporation at 317-253-0531 for comprehensive commercial general contracting services in Indianapolis, Indiana. We work with clients all throughout the state.

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3 Signs That Suggest Your Business is Due for a Renovation

Have you pondered the idea of renovating your commercial building or business, but you just aren’t sure if it is a worthwhile endeavor at this point? Continue below to learn the top 3 signs that suggest now is the right time to renovate your business, plus a bonus tip on where to get comprehensive commercial general contracting and remodeling service near you.

Commercial General Contracting Indianapolis Indiana 317-253-0531
Commercial General Contracting Indianapolis Indiana 317-253-0531

How to Evaluate Your Surroundings to Gauge Your Need for Commercial Renovation

It is no small feat to run a business, so the idea of adding a commercial renovation to an already-growing To-Do list can feel quite stressful, to say the least. However, commercial renovations are an important part of growing and enhancing your business. With the right Indiana commercial general contracting team, you won’t have to worry about how your business’s daily operations will be affected, nor will you need to sweat the budget. A qualified commercial general contractor knows how to deliver streamlined remodeling or renovation project that meets the budget, as well as all other detailed specifications of the job.

Looking For the Signs

To gauge your need for a commercial renovation, start by looking around and asking yourself some important questions. Here are the signs to look for:

Your Current Business Layout is Obsolete

Like all things in life, your business is bound to change overtime. Ask yourself if the current design or layout still works well for your business. Do you have a lot of unused space? Do your employees mostly work remotely? Do they work in groups? Have your operations changed? Do you have updated technologies that enhance customer experience or business operations? A renovation can revamp the flow and efficiency of your space to meet your current design needs.  

Your Building Does Not Match Your Brand

Have you recently rebranded? If you are occupying an older building, it can sometimes be a challenge matching your new brand to the overall look and feel of your space. A renovation can help balance your business’s culture with the available aesthetics, from signage and paint palettes to interior layout, technology applications, and more.

Super High Utility Expenses

There is no getting around to paying for the utilities necessary to occupy and operate your business space. But if your utility expenses are putting a lot of pressure on your books, it may be a sign that your building needs some updating. From energy-efficient building materials and power systems to green construction improvements and more, incorporating these upgrades can instantly lower your utility costs and may even qualify you for governmental grants and tax credits.

Are you ready to learn how easy it is to enhance the overall efficiency and operations of your business through smart commercial renovation? Contact BAF Corporation at 317-253-0531 for a one-stop-shop solution to full-service commercial construction management in Indianapolis, Indiana. From start to finish, our teams handle it all.

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How Photography Can Benefit the Commercial Construction Process

Every business professional knows the value of documentation. When it comes to a commercial construction project, the same administrative principle applies. Modern technology has allowed construction managers to improve their scope of documentation during the building process using technologies like drones, videography, and even photography. That’s right, snapping strategic photos of the commercial construction site can benefit the building process by improving efficiency, quality, communication, and much more.

Continue below to learn the top 5 ways you can use photography to enhance the success of a commercial construction project, plus where to get trusted commercial general contracting services in Central Indiana.

Commercial Construction Indianapolis Indiana 317-253-0531
Commercial Construction Indianapolis Indiana 317-253-0531

The Benefits of Commercial Construction Photographic Documentation

Written documentation has its obvious setbacks. But with modern photographic capabilities, contractors, builders, and investors are no longer subjected to paper or electronic methods of documentation. Here are five ways you can apply smart photography to your commercial construction project:

Real Time Progress Updates

Authorities of the build, such as general contractors, investors, and real estate developers, don’t always have time to visit the job site on a daily basis. When they do have time, they can always spend hours upon hours going through every element of the build. Electronically-sent photographs of the job site can be used as a viable and efficient alternative to on-site visits, plus serve as a secure way to verify that progress is in fact happening.

Construction Safety

On-site construction photography can actually improve the overall safety of a project. Taking pictures of unsafe job site conditions, worker habits, or hazards to send to your team is an efficient way to communicate site emergencies and priorities, plus better prevent workplace and construction site accidents.

Liability Protection

As you just learned, smart and strategic photography can increase the level of construction site safety. Since a safer construction site renders less accidents and injuries, you enjoy better liability protection against worker’s compensation and personal injury claims. Aside from injuries. Construction photography can be used as evidence against other types of litigation, such as contractor disputes,  landlord disputes, building code violations, and zoning red tape.

Historical Site Data

Construction site photography can provide chronological visual documentation that shows the before, during, and after stages of a construction project. Having such historical data on the construction site can be highly beneficial and informative in all sorts of scenarios, especially in terms of remodels, renovations, and build outs. You can have visual data of load-bearing walls, studs, plumbing networks, utilities, and much more. Not only does historical photogenic documentation make repairs and renovations faster and easier, but it also makes them cheaper.

Local Marketing

Progress photos of your construction build can be used as a marketing strategy to call attention to your company. Local residents and business owners are interested in new additions to their community and will enjoy anticipating an upcoming build. Post your construction site progress photos on social media as a free and effective way to spark curiosity among your market and followers.

Are you looking for a trusted commercial construction company in Indy but unsure where to begin? Contact BAF Corporation at 317-253-0531 for comprehensive commercial general contracting services in Indianapolis, Indiana. We work with clients all throughout the state.

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FAQS About Commercial Construction Costs

When preparing for an upcoming commercial construction project, it is natural to steer your focus toward cost. After all, the whole point of building a new property for your business is to expand your profitability horizon. Fortunately, there are several resources available to real estate investors and developers like yourself that can help you gain the perspective you need to move forward with confidence. Below is one such resource.

Review these frequently asked questions about commercial construction costs, then get in touch with a trusted Indiana general contractor who can optimize your business objectives through a successful build.

Commercial Construction Company Indianapolis Indiana 317-253-0531
Commercial Construction Company Indianapolis Indiana 317-253-0531

Frequently Asked Questions About Commercial Construction Costs

What is the Average Commercial Construction Cost Per Square Foot?

It is challenging to determine an average commercial construction cost because all projects are different. The cost of one commercial construction build will be different from the next due to varying factors like size, scope, local zoning, building codes, use of property, and of course, budget.

Above all, the top three factors that typically have the most impact on commercial construction costs include:

▷ Building Location
▷ Regional Climate and Weather Patterns
▷ Local Economy
▷ Architectural Design and Function

As for commercial construction square footage, averages will vary depending on these factors more. However, the average cost of a single-story office may be somewhere along the lines of $160 to $170 per square foot, while convenience stores might run closer to $100 per square foot.

Cost to Build a 5,000 Square Foot Warehouse?

Building a 5000 ft.² warehouse will come with some expected expenses, mainly due to the size of the building, plus the likely scope of function. Many warehouses have to be constructed with temperature and climate control features, as well as storage in cubic square footage considerations. With this in mind, you can expect a 5,000 square-foot warehouse to come in at a base cost of $7.50 per square foot. You may be able to get a cheaper deal if you choose a lower cost warehouse configurations such as the Q model Quonset or similar prefabricated metal buildings.

Are Commercial Construction Cost Projections Estimated or Fixed?

When budgeting your commercial construction build, it is vital that you choose a trusted and reliable commercial construction general contracting company to navigate your project. They have the resources and experience to accurately estimate the total cost of your build, including state-of-the-art cost analysis technologies and long-standing relationships with suppliers and subcontractors. With these qualifications, your commercial general contracting team can provide you with an estimate containing mostly fixed cost projections. This helps prevent cost increases or unexpected additional costs.

Can I Afford to Remodel My Business?

Yes, you can afford to remodel your business. When you choose the right Indiana general contracting company to work with, you can ensure that your remodel will be within budget, while also setting the foundation for a more lucrative future.

Are you wondering which Indiana commercial general contracting company to trust for your upcoming commercial build or remodel? Contact BAF Corporation at 317-253-0531 for reputable commercial construction and remodeling in Indianapolis and its surrounding counties.

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Top 4 Commercial Construction Interior Finishes

With all the revolutionary technologies available to us today, interior commercial construction finishing has widened its scope to provide real estate investors and developers with several viable options. Continue below to learn the top four commercial construction interior finishes applied in the, plus how to determine which option best meets your overall business objectives.

Commercial Construction Contractors  Indianapolis Indiana 317-253-0531
Commercial Construction Contractors Indianapolis Indiana 317-253-0531

Popular Construction Finishes for Commercial Buildings

Whether you are a real estate developer who is preparing an upcoming build or a commercial tenant looking for a good TI allowance and build-out deal for a potential space, it is strongly encouraged to retain a brief understanding of the most popular construction finishes for commercial buildings. By choosing a commercial construction interior finish that aligns with your company’s goals, you can better meet the needs of your potential tenants or occupants, plus support the overall success of your company in whole.

Which Finish is Right for Your Commercial Construction Project?

So, what are the different interior commercial construction finishes available and which one is right for you? Well, you can custom design your commercial interior finish anyway you like alongside your trusted Indiana commercial construction management team. However, if you are like most, you may be more interesting in a turnkey option. If turnkey is your goal, these 4 construction finishes are a good place to begin your decision-making process:


White box commercial construction includes finished HVAC, plumbing, electrical, fire suppression systems, and fire escape accessibility options. It also comes with white walls, plain ceiling tiles, conventional overhead lighting. It does not have any appliances or industrial equipment.

White box finishes are very popular among landlords and multi-tenant real estate developers because they provide a clean slate for potential tenants. The commercial space is completely uncustomized, allowing tenants to choose their own wall colors, flooring, lighting fixtures, shelving, molding, accents, furniture, appliances, equipment, and more.


Gray shell commercial construction finishes are a step down from white box finishing. Think along the lines of a concrete-like interior space. Walls, floors, ceilings, electrical, HVAC, plumbing, fire suppression, ductwork, and similar systems are all expected to be unfinished.


Cold shell commercial construction finishing is much like gray shell finishing, but even more scarce. You can expect much of the same environment as a gray shell interior in addition to no wall dividers or bathrooms.


Finished commercial construction interiors are completed and all elements and aspects of construction and remodeling. These commercial spaces will include finished floors, walls, ceilings, and all electrical, plumbing, HVAC, ductwork, fire suppression system, sprinkler systems, and more. These are what you call turnkey spaces, which are highly convenient and time-friendly.

Are you looking for a trusted commercial construction management team who can help you decide which interior finishes right for your new build or remodel? Contact BAF Corporation at 317-253-0531 for commercial office remodeling and commercial-use construction in Indianapolis, Indiana. We serve clients all throughout the state.

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Top Considerations for Commercial Fire Damage Restoration

From droughts and wildfires to electrical defects, gas explosions, and more, building fires can be caused by a long list of triggers, which may explain why they are a common occurrence all throughout the United States. Structural and biohazardous damages are the wake of a fire accident, making fire damage restoration services a critical resource for commercial real estate owners and investors.

If you are currently planning to outsource fire damage restoration for your commercial property, be sure to include these important considerations in your decision-making process.

Commercial Fire Damage Restoration Indianapolis Indiana 317-253-0531
Commercial Fire Damage Restoration Indianapolis Indiana 317-253-0531

Commercial Fire Damage Restoration

To come back from commercial property fire accident, you will need a selective and qualified team of fire damage restoration specialists on your side. These commercial general contractors are an essential tool for repairing the damages left behind from smoke, heat, flames, ash, fire retardant, and water. A lot of elements go into the remediation of fire damages, especially on a commercial scale.

Act Fast After a Building Fire Accident

It is important to hire qualified fire damage restoration professionals who are licensed and insured and have extensive experience in the field. Contact them as soon as the fire has been controlled and put out. Time is of the essence when it comes to repairing the damages left behind by a fire catastrophe. In fact, the Institute of Inspection Cleaning and Restoration Certification (IICRC) supports the fact that licensed commercial fire damage contractors are effective sources for large-scale, extreme fire accident restorations. They have the proper equipment, training, licensing, and resources to deliver full-service, fire accident cleanup, demolition, safety inspection, building code compliance, renovations, and more.

What to Keep in Mind in Regard to Fire Damage Restoration Service


Fire accidents generate the production of many dangerous chemicals. Things like plastics and similar synthetic materials leave behind traces of hazardous chemicals, which can be toxic to your health and the surrounding environment. Similarly, burning wood generates heavy amounts of smoke being that it is one of the most combustible materials within a building. Wood smoke is filled with all sorts of noxious chemicals and gases like carbon monoxide, sulfur dioxide, and even heavy metals, which can linger after fire accident.

Acidic Ash Residues

Fires, if they burn long enough, can turn everything into ash and leave behind a thick layer of black soot. After a fire, acidic ash residues are visible on all surrounding structures, including ceilings, walls, floors, furniture, equipment, escalators, elevators, and even within air ducts and plumbing pipes. Because of the high level of toxicity, fire ash and soot must be removed as soon as possible, preferably within a couple of days after the accident. If acidic ash residues and soot from smoke are not treated after a fire, they will begin to discolor and deteriorate all that they cover. Soot in particular becomes harder to remove as time goes on and will even break down metals and glass, causing irreparable damage.

Smoke Odors

Residual smoke odor is another hazardous element of a fire accident. It is important that noxious smoke odors are treated with professional grade equipment like ozone treatment devices and thermal foggers. These technologies penetrate deep within the walls and building materials of the property, including HVAC systems, vents, and air ducts, working invasively to eliminate smoke and fire odors.

Fire Extinguishing

Fires cause an extreme amount of damage, but the methods used to put out a fire can also leave behind messes and damages that require restoration. Fire retardants and water hosing can cause what is known in the industry as secondary damage, which can result in flooding, damp walls, damp floors, water-logged insulation, moisture and humidity issues, mold growth, mildew, toxic fumes, stains, and related hidden damages.

If you are looking for a commercial fire damage restoration contractor in Indy, look don’t need to look any further. Contact BAF Corporation at 317-253-0531 for comprehensive commercial renovations in Indianapolis, Indiana. Our licensed and insured commercial general contractors serve clients all throughout the state.

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Is it Better to Lease or Own a Commercial Building?

Are you looking for a new commercial space for your business? If so, you will soon be making the decision between buying or leasing. What are the pros and cons of renting a commercial space versus owning? Does owning come with certain inherit risks? Will renting come back as an economic disadvantage down the road?

Continue below to review some important considerations that will help you decide between buying and leasing commercial real estate.

Commercial Remodeling Indianapolis Indiana 317-253-0531
Commercial Remodeling Indianapolis Indiana 317-253-0531

To Buy or to Rent Commercial Real Estate?

Well, that is the question; isn’t it? Whether you are looking for commercial real estate for a small office, multi-divisional headquarter, retail storefront, café, factory, or distribution facility, your decision to buy or lease will rely heavily on your capacity to take fiscal risks. Here are some of the top considerations to keep in mind when weighing the pros and cons of each option:

Buying a Commercial Space

There are plenty of upsides to owning your own commercial space. Not only will your asset appreciate over time and build you equity, but it will also give you full control over the property itself. In many industries, this level of executive decision-making is essential. With full control, you don’t need permission from a landlord or property management company to do any type of renovation or build-out to your commercial space. On the other hand, you’ll still be subjected to local zoning, permitting, and building codes. Not to worry, this is something your Indianapolis commercial general contractor can take care of for you.

Another prime advantage to owning your own commercial spaces being your own landlord. Not only does this give you more flexibility over rent rate adjustments (as opposed to going through landlord), but it also gives you the opportunity to generate additional income by renting excess commercial space to other tenants. Of course, with owning any type of property, you are typically eligible for certain tax credits and tax breaks, such as interest paid, business expenses (including startup costs), and depreciation of value.

Lastly, owning your own commercial space will provide you with the benefit of an investment safety net. If anything were to happen to your business, such as bankruptcy or closure, you would still have your commercial asset to fall back on. You could choose to sell the property or continue renting it to another tenant or tenants.

Potential Downfalls to Owning:

A large down payment is required to procure a commercial property, typically between 10% and 40% of the property’s full market value. Along with a substantial down payment, you’ll also be subjected to additional financing fees and expenses.

If you have difficulty qualifying for financing, you will be subjected to using unconventional lending sources, which can result in cost-prohibitive interest rates. Furthermore, commercial real estate loans can come with terms and conditions that are with prepayment penalties, including defeasance and yield maintenance.

In terms of investment, commercial real estate procurement always comes with the inherent risk of depreciation rather than appreciation. It is very possible for a commercial property to lose value rather than gain it over time. When it comes time to sell, you could lose money.

Being your own commercial a commercial property owner automatically subjects you to a legal duty of care. Under premises liability law, you will be responsible for any damages and losses incurred by a victim of a wrongful accident that takes place in your property.

Then there’s always the risk of outgrowing your commercial space. If this were to happen, you could hire a commercial general contracting company in Indiana to remodel or build-out your current property. But in some cases, business owners are forced to sell and relocate, which can be inhibiting to business operations, and not to mention, very expensive.

Renting a Commercial Space

Now, let’s take a closer look at the pros and cons of leasing a commercial space. First and foremost, leasing a commercial space is safe much faster process than procurement. This allows you to get your business operations up and running sooner, which in turn starts generating income faster. It is also a lot easier and faster to get approved for a lease than it is for a loan.

Another notable advantage of leasing commercial property is the upfront affordability. Rentals do not require a substantial down payment other than a first month and last month deposit. A rental deposit compared to a down payment is much lower, giving you more capital for starting your business.

As we continue down the list of all the pros to renting a commercial space, you will see a pattern of cost-savings. Renting versus owning will save you a lot of money in terms of maintenance and upkeep. You will not have to hire an in-house custodial service, nor outsource for landscaping, street sweeping, parking lot repairs, and seasonal maintenance work. All of these facility maintenance needs will be incorporated into the total cost of the lease and provided by the landlord.

Leasing also entitles you to certain tax breaks and tax credits. Not only can you deduct your full lease payments, but you might also be able to deduct insurance costs and property taxes.

Potential Downfalls to Leasing:

In some cases of leasing a commercial space, you will pay more in monthly rent than you would in a monthly mortgage payment plan. And since your rental payments are not going toward the goal of outright owning the property at some point, these payments can be viewed as wasteful. Unless you are in a lease-to-own agreement, you will not build equity with your rental payments.

Under a commercial lease, you are not permitted to rent out excess space to tenants. This means you will not have the opportunity to generate secondary income. This is just one way you are under the control of the landlord or property manager. Which comes to our last notable downfall to leasing, you have very limited control over what you can do with and within the property.

Are you looking for a trusted commercial general contracting company who can turn your new commercial space into exactly what your business needs? Contact BAF Corporation at 317-253-0531 for professional commercial construction management and space planning in Indianapolis, Indiana.

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