Building New vs. Renovating: Which is Better?
If you are unsure about whether to start your next endeavor in a retrofitted space or start from scratch in a new build, senior director of project and development services at JLL, Andrew Quirk, spoke to Lab Design about the advantages and disadvantages of renovating versus building new, and how to know which is best for you.
Q: What is the difference between building and renovating?
A: Building is generally referred to as building something new, ground up. Renovation refers to altering an existing space into something new. Renovations can be further defined as minor, mild, or heavy depending on the depth and severity of the work. Typically, a renovated space is within the existing envelope (building walls and roof), and you are confined by those limits. Building new generally allows starting from scratch and completely customizing a solution that meets current and to some extent future needs.
Q: How does one evaluate when to build vs. renovate?
A: Life Science and specifically laboratory projects are inherently technically complex and expensive spaces to design, build, and operate. When planning for a project, there are a few key foundational topics that should be identified that will assist in answering the complex question. It starts with defining the problem(s) you are trying to solve (project scope) and includes timing for the project, schedule, overall project budget, programmatic needs, future-growth (long-term planning) identification, facility assessment, and sustainability requirements. This list is a sample and may include many other requirements that are important to a specific project.
It is also important to consider the functionality of the existing building or space including, MEP systems and building support, floor-to-floor heights, natural light, availability of services, the building’s structural system – as it relates to load design and vibration, and future equipment.
Also, consider the current functionality of the space both operationally and from the human perspective. As research space continues to evolve, the space these functions take place has evolved as well. If the current location needs to be revised, ask the simple questions: Does it support current means and methods or is it outdated? Will renovating the space correct the base function?
Other considerations that are sometimes not included in evaluations are the disruption to ongoing operations, relocation planning, and staffing shifts that can be intrusive and add significant costs. When many of these questions are measured and the pros and cons of a renovation vs. a new build are evaluated, a more informed decision can be made for one or the other.
Q: What are the advantages and disadvantages of each?
A: Examples of new building and renovation advantages and disadvantages include the following.
Building New – Advantages
Fully customizable solution that supports current and at times future needs
Able to reflect the latest technologies, designs, operational efficiencies, and refinements of the physical environment
Flexible and ability to drive efficiency
Build excitement among stakeholders and employees
Increase employee attraction and retention
Increased energy efficiency
Decreased operational cost and lifecycle cost
Branding opportunities
Building New – Disadvantages
Increased stakeholder involvement
Increased duration (schedule)
Having to work in potentially undesirable conditions until a new building is completed
Potential additional realized costs including land acquisition and development
Renovation – Advantages
Ability to stay in the current location
Can be finitely defined and scaled based on budget parameters
Ability to solve finite issues one at a time or lump multiple opportunities into a solution
Spread renovations out over time as needed (slow capital expenditures)
Renovation – Disadvantages
Limited to what the existing building can support (floor bay sizing, floor-to-floor heights, weights, etc.)
Need to clearly define and articulate the goals of a renovation (many times all issues cannot be resolved at one time)
May not fully realize the extent of the needs
Large renovations may have multiple phases and moves that have labs and offices moving multiple times
Noise and inconvenience can affect operations and morale of staff
Hidden problems uncovered during renovations can add unplanned expense
Q: Which is more cost-effective?
A: The simple answer is that it depends. While some may think building a brand-new building has to be more expensive, some highly technical spaces that require significant upgrades can be more costly than building new ones. One thing to remember is that the cost of new or renovating is not simply design and construction costs. To better understand which solution may be the best, you should consider total project costs (soft costs including moves, furniture, equipment, etc.) which can typically be twice the cost of a construction budget.
Also, consider life-cycle costs when analyzing options to renovate or build. Balance initial cost with lifetime cost (O&M, sustainability, utility costs, employment costs), etc. When examining the entire pie chart of expenses, sometimes the answer is not obvious. Especially when you add lifecycle costs back into the equation like savings from reduced energy consumption and fewer future renovations due to flexible design integration.
The important thing is to complete a side-by-side comparison, considering all costs, and social impacts to make a better-informed decision. As a rule of thumb, however, light to moderate renovations are typically always less expensive versus building new as a solution. When you enter into major renovations, that is where the exercise of considering a new build can pay off.
Q: Which would be more advantageous for clients?
A: The advantage to clients comes from measuring a comprehensive set of criteria including short and long-term strategy, first and life-cycle costs, and human aspects before committing to a renovation or new build. The comparison of the planning alternatives should also identify the degree to which each alternative achieves the original project goals.
A great place to start is with a benchmark of each option. Benchmarks can identify similar scopes, cost, and schedule to measure against when planning a project.
On the surface, a wide range of square foot costs for labs exists as each is uniquely different and varies with complexities of the science being conducted within the space and the variance of additional space (by percentage) like offices, meeting space, etc.
