Commercial (and Residential) Disparity . . . Old vs. New

One of the things I know best in my professional life is dealing with 'old' spaces. The polite terms for old space are adaptive re-use, time tested and even the trendy but often applicable mid-century modern. That would be the middle of the last century, which started with 1900. So what qualifies as old space? It's not as simple as an actual age. Generally, enough time has had to pass that much more functional buildings exist in the same market with features more cohesive with today's needs. In Realtor classes we all learned this as Functional Obsolescence. In this market (Lancaster County specifically), that is a big qualifier as there are a plethora of technically functionally obsolete buildings being used with tremendous success and prosperity both for their owners and tenants. There is room for all types of buildings, just as there is room for many different styles of homes.

On a trip to brunch a few weeks ago with my relatives through the Lancaster County hinterlands, I noticed a larger-than-anticipated number of small, neatly kept trailer park communities. I commented on how well maintained and orderly these communities seemed to be and how there was obviously pride of ownership for the occupants in the details of how they had personalized and outfitted their homes. Someone in the car asked why they still exist in this day and age when there are so many other options that are more efficient and better constructed. This led to the discussion of choices and preferences and why things appeal or make sense to some people and make absolutely no sense at all to others.

Often it comes down to some very simple elements. Where and how you work and live or operate your business is driven largely by the two overriding factors of location and money. Tertiary, and lower in priority, are the amenities. Just as there are needs and wants in a home, there are absolute must haves and then lesser priority 'it sure would be nice to have...' elements in a building for a business. There are those who will always, no matter how much a place does not work for them, stay put and deal with the situation. There are others who will move through the stages of growing a business -- from the ground up by starting in a basement or garage through leasing their first real commercial space to expansions and then purchasing a building. The same applies to those who get their first home while single and then move through a succession of homes as they go through the myriad of life changes, starting small and going bigger and bigger until it is time to go the opposite way, smaller and smaller.

Just as there are homes built in the newest and most technologically advanced ways with programmable systems that are controllable by cellphones and computers with state-of-the-art energy efficiency and a green impact, there are also new commercial buildings being erected with much the same focus. These new options will appeal to organizations with the desire to operate with maximum efficiency and with a focus on environmental stewardship. Sometimes it is also seen as inherently valuable to a company to be able to present their business as having the means to pay for all that shiny new responsibleness. This is the perception theory of "if you want to continue to be really successful, keep looking really successful". Other companies, especially in Lancaster County, do not mind a bit of austerity; and sometimes they even underplay the bold display of success as they may believe that their clients most appreciate doing business with a company that practices and exhibits principals of practicality and function. Here, unlike many places and likely to some extent because of our heritage, it is not always seen as a good thing to be 'proud'. There are any number of theories as to why people live where they live and work where they work.

Take for instance that some people love old homes. They want to tinker, preserve and maintain; or maybe they just like the feeling of history. Alternatively, some people dream of a new home. New appeals from the custom design to making their own original dirt to the more modern esthetics and amenities. There is no right or wrong. In between the old and new is the broadest range of lifestyle choice homes that are pre-existing but not quite old homes. That explains the multi-billion-dollar home renovation contractor industry, the stores and the plethora of entertainment channels devoted to making-over and customizing an existing home.

As a company decides to leave a location, it opens up a space for another company to move in and make that space work for them. Over time this may happen every few years, every few decades or once or twice a century. A strong building with solid fundamental engineering can be adapted to suit the needs of multiple operations just as a three-bedroom home with a two-car garage can fit a single person or a fairly large family. So what about limitations? Some prime elements in today's commercial building, aside from the obvious key location issue, are ceiling height, power, climate control, docks, doors and parking.

In a nutshell -- for a new and perfectly ideal commercial/industrial building, you are likely to get an easily accessible location ideal to highways with simple and easy-to-maintain exterior materials to assure a professional and well-maintained facade for appearances. Parking for visitors and key associates at the 'front' office door, all fully ADA accessible and with pleasant but low effort landscaping. Offices connected directly to the production area which has high ceilings, multiple docks and at least one drive-in door. Room out back for trucks to load and unload and a bit of flat, paved area for trucks to side load off and more parking for the shop/production employees. Extra room out back for the invariable stuff you don't want inside, and room to place a roll-off dumpster. Bathrooms for both office and shop (separate) and obviously full HVAC capability. Other mechanical musts include ventilation, compressed air capability, three-phase power, water and sewer and energy efficient lighting and customizable security. All of this, of course, with state-of-the-art, technologically controllable remote access.

An older or even a good old building will have some of the above, and the rest will be adaptation and compromise. Before beginning a search, it is best to determine exactly what items a building absolutely must have and which things would be great but can be done without. In some ways it is not that much different from a residential wish list, but in practice it really is different. Work has to function while life just wants to be happy.

Facts, opinions and information expressed in the Blog represent the work of the author and are believed to be accurate, but are not guaranteed. The Lancaster County Association of Realtors is not liable for any potential errors, omissions or outdated information. If errors are noted within a post, please notify the Association. Posts represent the author's opinion and are not necessarily the opinion of the Association.