Wolgast Blog - Construction Trends, Tips and Information

Commercial Property Financing

As I found out recently by talking to Steve Canole, Vice President and Business Loan Officer  at 1^st State Bank, there aren’t as explicit criteria for securing a commercial construction loan as there are  for residential mortgage financing.  According to Steve, there are many more variables that lenders need to consider when reviewing a commercial property mortgage compared to a residential loan which is more stream lined.  Primarily, these variables include whether it’s an investment property versus owner-occupied, the size of the project, the varied ways commercial real estate can be purchased and held, the various types of operating entities and how the owner chooses to operate and file taxes, and finally the loan/cost ratio of the project.

Obviously, planning a construction project doesn’t happen overnight.  In most cases, the client has a set occupancy date when construction has to be completed either to satisfy a contract they have acquired or to meet their seasonal market (to name two).  During that construction project time frame, planning through completed project, there are five main activities that need to take place, which include design, cost estimating, obtaining regulatory approval, acquiring materials and construction. 

Continually meet with patients throughout construction

Dentists sometimes put off improvements to their building space due to the anticipated disruption of their business.  Determining how to remodel their office or relocate to a new space when a practice can’t survive without an active patient load can feel like a big risk.  However, I’m here to tell you that it's possible to remodel, renovate or relocate a dental office with minimal impact to your practice when you use a professional contractor.

In a competitive bid situation, contractors can go to the extremes to lower their bids, especially when work opportunities are scarce.  In the end, a business owner may like the price, but may not like the final results.

We have had all kinds of business owners from varying professions ask us about using a pre-engineered metal building when they’re fact finding about new construction for their business.  We tell them a general rule of thumb to consider is that metal buildings are best for businesses that want an industrial look, or have a big enough budget to dress up a pre-engineered building with brick or EIFS (for example) to mask the industrial façade.

In light of our staff architect, attending the Health Facilities Planning Seminar this month, I thought it was timely to discuss what makes a contractor specialized in medical office construction.  To some people, all buildings with walls, floors and a ceiling are the same and the contractor shouldn’t make a difference when constructing it.  While I believe that it always matters who the contractor is and how professional and customer service oriented they are, obviously, most any contractor can build simple buildings (how much hassle you want to deal with is up to you).  However, a medical building is not a simple building.  The healthcare industry is highly regulated and uses a plethora of specialty equipment or med gases each with its own requirements.  Plus whether you’re dealing with a Patient Centered Medical Home or a surgery or endoscopy center, it’ll be easier to successfully achieve your goal

Remember the good old days—a few decades or so ago—when a doctor could practice for 30 – 40 years and then sell his or her practice to another doctor when they were ready to retire, or better yet, have a son or daughter to take over the practice.  Jump forward to present time and it’s not as easy to find someone to take over a medical or dental practice.  The reality is there are far fewer doctors graduating than there are practices out there and doctors should start succession planning well before they’re ready to retire.

Especially When Commercial Space Is So Efficient

Taking on Today's Challenges to Improve Outdated School Buildings

Many Michigan school boards and schools districts are facing the same problem, outdated buildings with fewer students and a community that already feels burdened by taxes.  Asking tax payers to take on a bond to make school improvements seems like it would be a big challenge.  Without the right information and resources, it is a much bigger challenge.