8 Things to Consider Before You Build a Commercial Building

Things to Consider Before You Build a Commercial Building
  • Author: Mohsin Khan
  • Posted On: July 29, 2022
  • Updated On: July 10, 2023

Did you know that there were 5.9 million commercial buildings in the United States with a total floor area of 97 billion square feet in 2018?

This is a rise of 56 percent in the number of buildings and a 90 percent increase in floor area since 1979. Moreover, according to the estimation, the commercial building floor space will increase by 124.3 billion square feet by 2050.

So if you’ve planned to construct a commercial building, you’re at the right place. This article will tell you about some essential things to consider before you build a commercial building.

Let’s dive in.

8 Essential Things to Consider Before Commercial Building Construction

The construction of a commercial building is a profitable real estate investment where you can expect high returns. However, it needs significant time and resources in the beginning.

There are many aspects to consider. For example, hiring experienced developers and contractors, whether for heavy civil construction projects like bridges or highways or a local building project, is vital.

Below we have enclosed eight crucial things you should consider before commercial building construction.

Choose a Suitable Location

Location plays a vital role in your success in the real estate world.

Thorough research can lead you to a suitable place where you can drag thousands of customers. Also, you should select an area that permits commercial construction.

Furthermore, the site should be easily accessible to people via roads. And don’t forget to consider your competitors in that area.

The surrounding infrastructure could benefit or negatively impact your investment if commercial buildings already exist there.

If possible, the location should allow access for people who use wheelchairs or scooters as mobility aids.

Evaluate Building Type

The second thing to consider is what type of building you will construct. You should analyze your property’s requirements to determine how best to use it as a commercial property.

Whether it’s a retail, industrial, residential, hotel, office, gym, or another specialized facility like a movie theater, each type of structure has its requirements and criteria.

You will need to find out how many floors you want, parking space, and other amenities. For example, if it will be an office building, you need to create a layout where some additional features would help office staff and clients.

Make a Construction Budget

Make sure you have a precise and clear budget for your project before moving on with construction.

To stay within budget, commercial building developers and contractors must create a thorough expenditure list before starting construction. Further, you can use technology that makes construction easier and more efficient.

Consider your building’s design, the cost of construction, the cost of the land, and any other expenses. Talk to contractors and conduct all essential research early on to ensure that you can gather any required information.

You can seek the advice of a financial adviser to make things easy for you. Apart from construction cost, add the government’s permit to the total cost.

Get Your Finances in Place Beforehand

You will need a lot of money to construct a commercial building. Most businesspeople and entrepreneurs use banks and other financial institutions to lend money. Therefore, hiring an experienced financial advisor would also be a good choice.

You need to talk with your bank about the building’s intended use, the associated expenditures, and the most affordable construction method. The bank advisors may be able to help you with financing and in obtaining the funds.

Get Necessary Approvals and Permits

Before you begin any construction, you require numerous permits from the government.

Please remember that each country and city has different requirements for obtaining building construction permits. In addition to standard permits, some projects require environmental clearance too.

Sometimes, local officials may visit the place to ensure you follow construction regulations. Avoid this by getting the necessary building permits in advance. It will guarantee a seamless construction procedure.

Hire a Professional Building Contractor

Now, here comes one more important aspect you should note. Choose an architect and contractor with expertise.

This is crucial for the success of any commercial construction project. Therefore, please pay special attention to the contractor you employ.

Check if their contractor licenses are registered correctly. Commercial builders and architects must know your area’s most recent building regulations.

Additionally, confirm that the contractor has the experience with necessary tools, for instance, the construction vehicles all construction companies use.

When hiring subcontractors for electrical work, you should also confirm these things with them.

Get in Regular Touch With the Contractor

The project owner and the contractor must communicate regularly for commercial construction for a better outcome.

You must know the architects, designers, and project managers in charge of your project. They will remain your co-workers for many months or years.

Maintaining an open line of communication will make it easier for everyone. It would help if you regularly ask your team about their ongoing project, materials, and resources requirements.

Consequently, you and your team will deploy a building construction process, and your project will get completed on time.

Plan for Setbacks

You may face unexpected things and setbacks during the construction project—it’s almost inevitable.

Establish a reserve budget in case unexpected expenses occur during the construction period. It might cost you money, time, and effort if you’re not ready with any plans for setbacks.

Maybe your building construction will face a natural calamity during construction. This could be a very bad situation.

That’s why financial advisors recommend you save some part of your budget aside for such emergencies. So you must reserve 5-10 percent of your budget aside for these unforeseen expenses.


Whether you’re constructing a commercial building for retail stores, shopping complexes, or offices, you must do proper planning and research before you begin.

Consider these eight factors when building a commercial building. It includes choosing a location, construction budget, building type, planning for setbacks, financial planning, hiring the right contractor, essential permits, and approvals.

You must also build a healthy relationship with contractors and architects. Considering these factors before creating a commercial will make everything smooth, and you’ll finish your project on time.

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Author: Mohsin Khan

Mohsin has worked as one of the experienced editors with ConstructionHow since 2020 with a total span of 5 years of experience in business PR, boasting a remarkable professional trajectory, he has collaborated with entrepreneurs and startups, and certain publications over the last few years. His unwavering interest lies in the construction industry and related materials. He believes in creating functional and aesthetically pleasing buildings, and homes that fall under the right budget. With a wide range of experience in construction, he also tapped into DIY and home improvement projects based on his extensive set of knowledge in the industry.